Founders Fund, a San Francisco-based venture capital firm, and Paradigm, an investment firm focused on crypto companies, are reportedly spearheading investment in a platform that is looking to combine music rights with NFTs.
According to credible reports, the new platform, called Royal, allows users to purchase shares in songs using the company's marketplace, cashing in on royalties as the music they have invested in grows in popularity.
The new venture is being led by Justin Blau, an EDM artist who is more prominently known as 3LAU, and JD Ross, a co-founder of the home-buying firm Opendoor. Blau has been one of the most visible and active members of the NFT community, initiating a variety of start-up initiatives geared at exploring ways musicians can monetize their music using crypto markets.
Blau stated that after the coronavirus restricted his ability to tour, he immersed himself full-time into NFTs, attempting to discover a way to shift the power dynamics on platforms that were extracting all the value from creators.
Royal's investment comes as a larger bull run for the NFT (Nonfungible Token) industry appears to be reaching a fever pitch, with investors pouring hundreds of millions of dollars in crypto into community NFT initiatives like Bored Apes and CryptoPunks.
While visual artists interested in placing their digital creations on the blockchain have seen many platforms sprout up and grow in recent months to simplify the process of selling their art, there have been fewer initiatives focused on musicians.
A $16 million, the seed round in Royal was led by Founders Fund and Paradigm, with participation from Atomic, where Royal co-founder, Ross was formerly a general partner. Keith Rabois, Ross’s Opendoor co-founder, oversaw the deal for Founders Fund.
Royal is not revealing much about its product plans or launch, even not divulging when the platform will start selling fractionalized assets. However, it has made clear that it would be aggressively leveraging Blau's music and position within the music industry to attract early fans/investors to the platform. Currently, users can sign up for early access on Royal's site.