Beatbread is a platform that funds independent artists with advances based on their internet metrics. Earlier this year, they raised $34m, and beatBread struck 11 new distributor partnerships across North America, Europe and Africa. Now they are adding human investors as an alternative to the algorithm deciding how much an artist would receive.
They are adding funding from music companies and professionals, distributors and ‘high-net worth’ individuals to its existing pool of institutional capital. The company says that the new feature will allow artists who have received a qualifying offer from beatBread to highlight tour dates, collaborators, marketing partners, and other initiatives to a range of pre-approved investors.
According to beatBread, this will give artists the potential to receive better economic terms than offered through beatBread’s automated process alone. So the artist can take an offer from an investor directly or take the Beatbread offer. Artists who qualify for the invite-only investor network can set their minimum terms, and if no combination of funding offers from within the network meet the artist’s threshold, beatBread says they’ll be able to accept their original offer from beatBread or walk away entirely.
Investors admitted into the network will “all have an interest and demonstrated financial capacity to fund multiple artists at scale”, says beatBread. In June, the company reported to have closed its biggest deal yet with an artist, announcing what it said was a “seven-figure artist financing deal” with singer-songwriter Elley Duhe, and Not Fit For Society, her management company and independent label.
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