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The advent of tokenized music assets and NFTs allowed investors to acquire rights to their favorite music, a feat that was nearly impossible a few years back.
This use case has increased investor interest in Web3 and blockchain technology recently.
In a new development, Web3 marketplace AnotherBlock has secured a new round of VC funding after successfully selling Rihanna's music rights on the platform.
The Sweden-based company raised €4 million in a funding round led by a UK-based venture capitalist, Stride VC.
AnotherBlock Raises $4.35 Million In Seed Funding
AnotherBlock is a Web3 marketplace for music founded in 2022 by Michel D. Traore, Sebastian Ljungberg, and Flip Strömsten.
The firm saw a wave of success lately following a boost in music NFT sales. The marketplace for music rights uses NFTs and tokens to generate ownership-related royalties.
Artists receive payment as a royalty whenever users buy their music NFTs.
Recently, a co-producer on Rihanna's album "Bitch Better Have My Money," Jamil “Deputy” Pierre, reportedly bagged $63,000 after selling his royalties for the song as NFT on AnotherBlocvk.
That was after Rihanna's extraordinary performance of the song at the Super Bowl LVII halftime went viral.
This NFT sale boosted AnotherBlock’s exposure, attracting the attention of venture capitalists who raised new funds for the startup company.
Among the fundraising participants was the artist Axwell of the Swedish House Mafia.
Before the €4 million ($4.35 M) funding, AnotherBlock had raised a $1.2 million pre-seed round from angel investors and venture capital firm J12.
It is worth noting that AnotherBlock’s NFT ownership agreement permits secondary sales.
However, the rights owner must pay NFT holders a percentage of all streaming royalties earned at least twice a year.
Tokenized Music Rights Are Revolutionizing The Music Industry
Music NFT sales have announced the Web3 spaces into the limelight.
According to a partner at Stride VC, Gabbi Cahane, this proposition could cause an explosive shift for an industry that was protective over IP ownership.
In a statement, Axwell, who participated in the VC funding, stated that AnotherBlock’s work aligns with their vision."
Further, he stated that the company’s future would enable greater rights flexibility by enabling creators to share financial incentives with their fans.
Notably, AnotherBlock isn't the first or only Web3 music NFT marketplace to secure VC funding after a boost in sales. Royal, an NFT-based music platform, did too.
Royal allows fans to buy and sell tokenized ownership of songs. It also sells tokens as a percentage of the music’s streaming rights, enabling fans to earn royalties alongside artists.
Royal had raised $71 million from Series A funding rounds from several investors, including a Web3-focused venture capital fund, a16z Crypto.