US-based music distribution and payment platform Stem today (April 18) confirmed that it has raised a new $20 million funding round.
The investment is being led by QED Investors, an important venture capital firm in the fintech sector.
It is also backed by Block, Inc., a global technology and financial services company. QED Investors and Block, Inc. joined by former Stem investors Slow Ventures and Quality control.
Stem says the new round of investment will help fund its next phase of growth as it launches “a range of tools for artists and labels that want more control and transparency in their finances.” their own, regardless of who they choose as their distribution partner”.
Announcing the new increase, Milana Lewis, CEO of Stem, said: “It’s worth mentioning that studios still send out paper reports to artists a few times per year.
“We believe studios should have a dashboard that tells them how much they’ve invested and lets their artists and collaborators know when they can get paid. We brought this experience to life for our customers, and now we want to give everyone the experience they deserve. ”
For the past six years, Stem has distributed music on behalf of artists like Brent Faiyaz, Melii, Wiz Khalifa and Juicy J, as well as record labels like Big Loud.
Frank Rotman, Founding Partner at QED, said: “QED invests in companies driving the future of finance and Stem is leading that in the music industry. Milana’s vision for the future of payments in the music business promises to disrupt the status quo and empower artists, labels and creators of all sizes.
“We are delighted to have Stem join the portfolio of fintech innovators and dedicate our years of experience to supporting the growth of fintech businesses.”
Jesse Dorogusker at Block, Inc. added: “We’ve seen first-hand the kind of innovation small businesses can unleash as we remove barriers to financial instruments that allow them to accept payments, mobilize capital and development. We’re excited to support Stem’s mission of transferring that kind of power into the hands of artists. ”
Sten’s most recent raise was the first since August 2020 when it secured $10 million in financing.
Former Stem Supporters Have reported include names like Scooter Braun, Mark Cuban, Vayner Capital, Upfront Ventures, Aspect Ventures, Dina LaPolt and Savan Kotecha.
In addition to distribution, Stem also provides financial tools for independent artists and labels that allow Stem’s customers to track their revenue, access capital, manage splits with partnerships membership and payment automation.Worldwide music business
