DENVER, June 19, 2017 -- Royalty Exchange, the world's first online marketplace for royalties, announced it has closed a $6.4 million convertible note to fund its growth. It also added three high-profile additions to its board of advisors.
The company intended to raise $3 million. But due to overwhelming demand, it increased the offering. This dramatic oversubscription validates investor enthusiasm both in the company's mission and its execution to date.
Royalties are the world's largest asset class without an established marketplace. Royalty Exchange is changing that, starting with music. The company connects songwriters and musicians with private investors interested in royalty income. Its platform lets rightsholders sell a part of their royalty stream in an online auction. Meanwhile, artists keep full control of their copyrights and continue to earn royalties on what they don't sell.
The response from both creators and investors is significant. The Royalty Exchange marketplace has demonstrated an average month-over-month growth rate of 16% for the last six months. So far this year, music creators have earned over $3.8 million using the platform. You can view the details of all current and closed listings at auctions.royaltyexchange.com.
"We've experienced significant growth over the last year. But we've only scratched the surface," said Royalty Exchange CEO Matthew Smith. "Imagine if you had only two options to grow your business... either sell out completely or grow from internal cash flows only. That's the choice many artists face today. Royalty Exchange adds a whole new option for rightsholders, and we do it by bringing competition and transparency."
These funds will go toward hiring additional staff and investing in new technology. The company is hiring for business development, marketing, and artist/label relations roles. It is also developing new financial solutions for both buyers and sellers alike. Stay tuned for details in the coming months.
Finally, Royalty Exchange welcomes to its advisory board three music industry veterans. They include:
- Jeff King, COO, SOCAN
- Bill Silva, Bill Silva Presents and Bill Silva Management
- Travis Hill, Carnival Music co-founder and songwriter (Kenny Chesney, Tim McGraw, Dixie Chicks)
"We're honored to have Jeff, Bill, and Travis join as advisors," said Royalty Exchange CEO Matthew Smith. "Their involvement will add critical momentum to our efforts to democratize this space."