Tune.FM Raises $20M in Funding for Web3 Music Streaming

Tune.FM Raises $20M in Funding for Web3 Music Streaming

Time Stamp: January 19, 2024 3:55 PM
Source Node: 2447989

Tune.FM, with its headquarters in San Francisco, a web3 decentralized music streaming platform, has secured USD 20 million in funding from global investment group LDA Capital.

Web3 music platform Tune.FM raised $20 million in funding from alternative investment group LDA Capital. The decentralized music platform aims to help musicians earn a larger share of royalties from their work by utilizing Hedera Hashgraph’s blockchain technology.

Tune.FM, consequently, provides musicians with a platform to receive micropayments for streaming in its native JAM token (JAM). Additionally, they help musicians mint their non-fungible tokens (NFTs) for digital music assets and collectibles.

Tune.FM announces the funding

Tune.FM announced, in a January 10 release, that it offers artists 90% of its revenue. When compared to other streaming platforms, it is also the most beneficial for the artist. Currently, major streaming platforms allow large corporations to take the majority of profits, leaving artists with a small portion. Platforms like Spotify capture a large share of profits from artists’ streams. Spotify said that “nearly 70%” of every dollar it generates from music is distributed to rightsholders. In an earlier report,. These rights holders then pay the artists and songwriters.

Significantly, the company is on a mission to disrupt this standard by offering artists up to 90% of their streaming revenue. Industries where influence and money are in the hands of a few, at the same time, are considered potential use cases for blockchain technology. This potential nevertheless remains unproven.

The return of a bull market for digital assets, however, could lead to more capital flowing into Tune.FM and similar platforms. This will allow them to test their theory.

Animoca Brands, the HBAR Foundation, and Broad Street Angels are some of Tune.FM’s existing investors.

Artists, additionally, can mint and sell digital assets and collectibles on Tune.FM’s music NFT marketplace. With this, artists can offer exclusive perks and immersive experiences for fans. This can include backstage passes, meet and greets, VIP packages, merchandise, FaceTime, or Zoom calls. Limited access to fan clubs, as well as group chats with the artist for news and behind-the-scenes content, follow suit.

Mobile apps for iOS and Android, moreover, show that Tune.FM is poised for expansion. Also, there are plans to onboard major label content, thereby offering fans a comprehensive music library available on Spotify and Apple Music.

Tune.FM also has plans to create a “music festival metaverse” in the future where fans can attend token-gated virtual live shows.

LDA Capital Investment

Over 300 transactions have been carried out by LDA across 43 countries. These transactions are in the public and private middle markets, with over $11 billion in aggregate transaction values. 

LDA joins other Tune.FM investors, including Animoca Brands, Mindfund, The HBAR Foundation, Broad Street Angels, and other angel investors such as Andy Hertzfeld, the co-creator of the Apple Macintosh.

This investment, moreover, comes alongside the growing attractiveness of superfan platforms. Fave raised $2 million in an ongoing funding round from Warner Music, Sony Music, Lyor Cohen (the Global Head of Music at Google and YouTube), and Shiva Rajaraman (the Chief Business Officer at OpenSea and a former VP at Meta and Spotify, among others).

Superfan platforms are made for artists to cater to their most dedicated fans. The platform fosters a closer, more personal connection between artists and their most avid supporters. This goes beyond simply listening to music and delves into exclusive experiences, personalized interactions, and deeper community engagement.

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