The startup, which is developing a decentralized platform Audius, allowing musicians to control the dissemination of their works and communicate with fans, has raised $5.5 million in a financing round of Serie A. It was headed by General Catalyst and Lightspeed Capital. Investors have also become startup companies Kleiner Perkins, Pantera Capital, and 122West Ascolta Ventures.
Among the advisors to the project, which has been dubbed “Souncloud on the blockchain”, includes chief architect BitTorrent Greg hazel (Greg Hazel), co-founder of Augur Jeremy Gardner (Jeremy Gardner), American music producer 3LAU and others.
It is assumed that the users of the platform, which is scheduled to launch later this year, will be able to pay for songs in the tokens Audius and earn their audition promotional updates, do not necessarily understand the intricacies of the blockchain technology. Of royalties for streaming songs to network musicians will receive 85% of the funds, and the remaining part will go to users that have placed product, and developers customers for listening to music on the platform.
Recall that in June, the company Microsoft, in conjunction with auditing firm Ernst&Young (EY) has presented a blockchain-based platform for tracking and payment of royalties to software developers, musicians, writers, other creators and copyright holders. And at the end of may in Saint-Petersburg joint-stock company Unified Depository of the results of intellectual activities (EDRID) announced the launch tested in 2017, registering a copyright on the Ethereum blockchain in parallel with the traditional way.