Stockholm & Los Angeles-based MasterExchange has just scored $2.7 million in funding from global investors, including Vectr Fintech, Claes-Henrik Julander, and Rob Small. The funds will be used to launch a unique music investment platform that lets anyone invest in the songs they love.
The MasterExchange platform enables anyone to invest fiat currency in specific songs and receive quarterly royalty payments, as well as trade their shares of music royalties. The first song to be made available to invest in is Sofia by Alvaro Soler with over 1 billion streams. This song is already available for purchase. Notable, the investment window will close on August 15 with more songs set to be announced soon.
Alexander Fred-Ojala, CEO and Co-Founder of MasterExchange, commented: “This innovation allows music lovers to find unique and exciting new ways to connect with the music they love, whilst allowing the industry new, easy-to-use channels to create super-fans. For the creators, MasterExchange offers the opportunity to sell a part of future revenues, giving them more possibilities to fuel artistic creation. MasterExchange is well-positioned to drive this change with a team that has frontier tech expertise, deep roots in the music industry, and company-building experience. I am super proud to lead this effort and this amazing group of people!
Co-Founder and Chairman of the Board Johan Edfeldt, added: “The investors we have onboard are not your everyday angels. This group brings profound knowledge of B2C plays (Rob, founder of Miniclip), sophisticated investment tools (Claes-Henrik, founder of Pan Capital) as well as the B2B2C VC perspective from Vectr Fintech (a San Francisco/Hong Kong based investment fund). We are proud and happy to have them onboard”.
Jason Best, Managing Partner at Vectr Fintech, commented: “We invested in MasterExchange because their experienced and execution-focused team has delivered the easiest user experience for artists, fans and music industry professionals. Their fiat currency-based model enables artists the best way to provide investment opportunities to their fans. The industry stakeholder alignment they have achieved can enable their platform to scale rapidly and efficiently. We believe that MasterExchange is capable of unlocking billions of euros of music investment value.”
How MasterExchange works?
MasterExchange was co-founded in Stockholm in 2022 by, amongst others, AI and blockchain expert Alexander Fred-Ojala, Star Stable founder Johan Edfeldt, and Billboard #1 producer Jakke Erixson. It is initially available to customers in the UK, the EU, and EEA countries.
An Initial Music Offering (IMO) allows a song to be offered for investment. This opportunity can be initiated by any master royalty beneficiary, typically artists, music labels, or producers. Investors can buy shares of song royalties, which entitle them to a portion of the income generated from the song’s use, such as through streaming services or when the song is used in commercials, movies, or TV series.
The platform provides transparent information about each investment opportunity, allowing users to review the details before making a purchase. Those who own royalty shares on MasterExchange receive quarterly royalty payments based on the number of shares they hold and the percentage of the royalty claims they own.
MasterExchange has taken significant measures to ensure the service is a secure, user-friendly, and compliant marketplace. All participating parties must undergo safety checks to meet eligibility and compliance criteria regarding age, country of residence, etc. Payments are processed in Euros through regular credit or debit cards, and the money is safeguarded by our regulated payment provider and custody partner.