Lower than three months after asserting a $16 million seed spherical led by Founders Fund and Paradigm, NFT music rights startup Royal has raised one other main spherical of funding, banking a $55 million Sequence A from Andreessen Horowitz’s crypto funding arm.
The startup companions with musicians and permits customers to purchase NFTs which characterize collective possession in works from these artists. The trouble is helmed by Justin Blau, an EDM artist who performs beneath the title 3LAU, and JD Ross, a co-founder of home-buying startup Opendoor. Royal represents a really early, however promising foray into NFT performance outdoors the spheres of visible artwork and gaming.
Final month, Blau gave away a whole bunch of NFTs by the platform, which held 50% of the streaming rights to his newest track. The startup says there have already been practically $600,000 price of secondary gross sales for these tokens, giving the brand new single an implied $6 million valuation. Crypto-friendly musicians like Blau have already banked hundreds of thousands from crypto holders seeking to diversify their holding by NFTs whereas additionally backing initiatives that broaden the market alternative of the blockchain.
Boundary-pushing initiatives like Royal nonetheless have a fragile line to stroll in relation to promoting alternatives to develop alongside artists whereas staying compliant with securities legal guidelines.
This funding is notably being helmed by a16z Crypto co-lead Katie Haun who sits on the boards of Coinbase and NFT market OpenSea. The agency already has a deep relationship with Royal’s govt group, having beforehand backed Ross’s final firm Opendoor. Naithan Jones, a former Andreessen Horowitz accomplice who led the group’s Expertise X Alternative Fund, additionally joined Royal in September because the agency’s head of Development.
Becoming a member of the spherical alongside a16z Crypto are a variety of musical artists, together with The Chainsmokers, Nas, Logic and Kygo. CAA and NEA’s Join Ventures, Crush Music, Coinbase Ventures, Founders Fund and Paradigm additionally participated within the spherical.