NFT-based music rights startup Royal has raised $55 million in a Series A funding round led by Andreessen Horowitz (a16z). Tura Connect Ventures, Crush Music, Coinbase Ventures, Founders Fund and Paradigm, as well as musicians The Chainsmokers and Nas attended. The company has announced that it will use the investment it receives to grow its team and invest in the growth of artists signing up on the platform.
Royal, a marketplace for music NFTs, allows users to purchase shares of songs and then earn royalties from the music they invest in.
It was stated that the platform will use funds "to invest in the growth of its ecosystem".
“The value of music ownership is massively misrepresented and underrated today, but it won't be long before more musicians embrace the web3 ecosystem,” Justin Blau, co-founder and popular electronic dance music artist, wrote in a recent blog post.
Led by Andreessen Horowitz (a16z), the tour has also attracted traditional investors such as Coinbase Ventures, Paradigm and Crush Music. Celebrities such as Nas, The Chainsmokers, Disclosure, Logic, Stefflon Don, Kygo, and Joyner Lucas are among other contributors.
"Music is one of the most exciting locks for NFTs," said Kathryn Haun, general partner of a16z, in a statement.
Blau, often referred to as DJ 3LAU, has handed out digital assets worth 50% of broadcast ownership on his latest single. The song "Worst Case" reached an implied valuation of north of $6 million in two weeks in Royal's market.
However, as NFT startups like Royal begin to grapple with more complex intellectual property and property divisions, speculation is being raised about how regulators will react in unknown legal waters. Blau told TechCrunch that Royal's team is working with legal counsel to ensure that his team complies with securities laws.
“A true fan might want to have something long before a speculator would even notice,” Blau said. “Democratizing access to asset classes is a big part of the future of crypto.”
Royal previously announced a $16 million seed round in August.