On-chain music platform Royal raised $55M in Series A funding round

On-chain music platform Royal has published a Series Funding round led by Venture capital giant Andreessen Horowitz.

On-chain music platform Royal raised $55M in Series A funding round

Royal allows fans to buy music rights via nonfungible tokens(NFTs) its co-founders, entrepreneur DJ Justin Blau and JD Ross who goes by the stage name 3LAU declared on Nov.23 they had closed a $55 million Series A funding, following a $16 million seed round in August.

Prominent venture capital Andreessen Horowitz led the round. Additional investment came from CAA and NEA's Connect Ventures, Coinbase Ventures, Crush Music, Paradigm, and Founders Fund. Celebrities and global artists such as Chainsmokers, Logic, Nas, Stefflon Don, Joyner Lucas, Kygo, and Disclosure backed the project as well. Royal will use the funds to scale their team and invest in the growth of artists who sign up for the platform.

Last month, CEO Blau gave away 50% of the streaming rights to his song "Worst Case" to 333 fans. Those fans get a cut of the royalties via NFT whenever the song is streamed on Apple Music, Spotify, or another streaming service. The song reached an implied value of over $6 million with fans holding half of the net worth. and the tokens traded moreover $600,000 in secondary market volume in only the first two weeks, according to Blau.

When asked how NFTs can explain the current issues within the music industry, Blau said that, “Artists’ livelihood is based on how much their fans support their music, but listeners aren’t compensated at all for that interaction. Royal leverages the NFT standards to help artists get more independence and help them capture more of the emotional value that music inherently creates.”

Royal wants to challenge the value of music ownership, which according to Blau, is "Vastly misrepresented and undervalued today." Historically, ownership of music royalties, streaming included, has been solely exclusively available to labels, hedge funds, and private equity firms as a portfolio asset, he explained.

This could all change, however, as more and more musicians embrace the Web3 ecosystem and simultaneously empower their fanbase while funding their careers. Royal's upcoming sale will go live within the upcoming weeks.

Read: TVL on Ethereum layer two surged to all-time high