Music streaming platform Audius, powered by Ethereum blockchain, announced a $ 5 million raise. Artists Katy Perry, Nas, Steve Aoki, Linkin Park, Disclosure and others participated in the investment round.
Audius made a name for itself to the world in 2018 by offering an alternative to Spotify or SoundCloud based on the Ethereum blockchain. The company initially focused on recruiting independent electronic musicians.
The company’s new approach to the music production process assumed that platform users would pay for internal AUDIO tokens or earn them by listening to ads. When listening to a recording, a song fee is debited from the client’s wallet, while the artists receive about 80% of the payment amount. The remaining 20% goes to the developers of the platform and software clients for listening to music.
Audius’ first investment round, Series A, also took place in 2018, with venture capital firms General Catalyst, Lightspeed and Kleiner Perkins participating. At this stage, Audius raised about $ 5.5 million.
Despite predictable competition from Spotify, Apple Music, Amazon and YouTube, the company managed to become a fairly popular music service in 3 years. With Audius
cooperates more than 100 thousand musicians, and the client base has reached 6 million listeners.
In August 2021, the decentralized music streaming service Audius became the first audio streaming partner of the TikTok short video creation and viewing platform.
Recognition from TikTok prompted a new strategic funding round, during which many popular artists and
institutional music industry leaders including the performance rights organization SESAC, Sound Ventures and investment firm K5 Global. Audius’ investment pool was about $ 5 million.
Rapper Nas, commenting on his funding involvement with Audius, said:
“I always knew blockchain was going to change the world and it might be the most important technology ever to emerge in the music industry.”