Shortly after attracting $2.7 million in funding, MasterExchange, a marketplace for investing in music royalties, announced that it has sold out its first so-called initial music offering (IMO).
MasterExchange provides a marketplace to invest in music by purchasing royalty shares. The platform’s debut ‘IMO’ centered around the track Sofia by Alvaro Soler, co-produced by T.I Jakke.
Sofia, released on July 25, 2016, has garnered over 2 billion streams across various platforms, attaining platinum status eight times in Italy and twice in Spain.
On the MasterExchange platform, the share price of Sofia, doubled to €15.00 from its IMO price of €7.50. With 4,000 shares on offer, the song currently has a market cap of €60,000.
“Sofia is an excellent opportunity to kick off your own music catalog with an anchor song that is on its way to become an evergreen [hit]. As the song is mature don’t expect a sudden big increase of streams, this is with a high likelihood a more steady revenue ticket,” MasterExchange said.
“The response to this IMO has been overwhelming, showcasing the resounding appetite for music-based investments. Demand was so high that the offering was oversubscribed, attesting to the fan- and market appetite of investing in music.”
Alexander Fred-Ojala, MasterExchange
Alexander Fred-Ojala, CEO of MasterExchange, added: “The response to this IMO has been overwhelming, showcasing the resounding appetite for music-based investments. Demand was so high that the offering was oversubscribed, attesting to the fan- and market appetite of investing in music.”
For those who missed out on the initial offering, MasterExchange’s secondary market, known as the Exchange, offers an avenue to acquire shares through user-to-user trading.
This platform allows users to buy and sell shares among themselves, creating an interactive space for share transactions.
MasterExchange hinted at upcoming releases and additional IMOs during the fall season.
The company counts global investors including Vectr Fintech, Claes-Henrik Julander, and Rob Small among its backers.
MasterExchange was founded in 2022 in Stockholm by AI and blockchain expert Alexander Fred-Ojala, Star Stable founder Johan Edfeldt, and producer Jakke Erixson.
The platform is accessible to users in the UK, the European Union and countries in the European Economic Area.
MasterExchange joins the ranks of companies letting fans to invest in artists’ compositions.
In May, its Swedish peer anotherblock, a Web3 platform that lets fans invest in music by buying NFTs, attracted €4 million (USD $4.3 million) in funding, nearly a year after it raised $2.5 million.
The evolving landscape of music investment platforms includes contenders like Royal, co-founded by musician and producer 3LAU, which closed a $55 million Series A round in late 2021.
Royal offers fans fractional music ownership through its own version of NFTs.
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