Tech

Music company NFT Royal raises $55M Series A funding from A16Z, big artists


Non-fungible Tokens (NFTs) have seen a dramatic rise in the art and video game sectors. Online music platform Royal has now announced that the company has managed to raise $55 million (approximately Rs 409.7 crore) in Series A funding led by venture capital giant Andreessen Horowitz, and called a16z led. The startup partners with musicians and allows users to purchase NFTs, representing collective ownership of these artists’ works. Chainsmokers, Nas, Logic and Kygo are among the musicians who have chosen to support the project along with the a16z cryptocurrency.

The project is led by Justin Blau, an EDM artist who performs under the stage name 3LAU, and JD Ross, the co-founder of home-buying startup Opendoor. Royal managed to bring in $16 million (approximately Rs 119.18) in a seed round in August led by Founders Fund and Paradigm.

Over the past few months, Blau has been running a test project in which he has distributed 333 NFT for fans through the platform owns 50% streaming rights for a new single titled “Worst Case”. The startup claims to have nearly $600,000 (about 4.46 crore) in secondary sales for these tokens, giving the “Worst Case” an implied valuation of 6 million dollars (about 44.69 crore). Pro-crypto musicians like Blau have cashed in on millions of crypto holders looking to diversify their holdings through NFT while supporting projects that expand opportunities blockchain market.

“We believe that blockchain technology has the potential to transform music ownership in the same way that the internet has transformed the way music is heard,” electronic duo The Chainsmokers added in a statement. Joint statement.

Although Royal’s premise of allowing fans to sponsor their favorite artist and get a portion of the royalties back is promising. It needs to be seen if the company’s ability to scale is successful initially. Music copyright is complex and has been the subject of costly lawsuits in the past, spanning decades. Royal’s model of cutting out middlemen and using blockchain technology to raise money directly from fans could make the royalty process less cumbersome, but questions remain. fit.

The biggest problem is: how does Royal dictate what percentage of people who own control will keep their songs? This can be a bit difficult, especially for third-party use and advertising while remaining in compliance with the law.


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and investment founder Alok Jain on Trajectory, podcast Gadgets 360. Orbit is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcast.

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