Music financing platform beatBread has secured another USD $124 million in credit and equity capital to expand its artist advance program.
The program is capable of paying cash advances of over $10 million to independent musicians and labels.
US-headquartered beatBread received equity investment from Citi, Deciens Capital, Mucker Capital, and Advantage Capital in the round. Additional credit was provided by GMO and other lenders, the company said Tuesday (August 5).
Founded in 2020, beatBread previously raised $34 million in a seed round in 2022, before closing a $100 million institutional fund later that year.
The company also launched an “exclusive investor network” in 2022 that brought funding from music companies, distributors, and ‘high-net-worth’ individuals into its existing institutional capital pool.
In February of this year, beatBread said it had paid advances to over 1,300 clients across six continents, with funding amounts spanning from $1,000 to over $10 million. These advances cover both existing music catalogs and new, unreleased material.
In 2023, the company launched multi-million dollar advances specifically for songwriters, and added publishing administration services through partnerships with Kobalt and AMRA last year.
“At beatBread, we’re building a financial foundation for true artist and label independence. By giving creators more choice, more access, and more control, we’re helping them stay independent on their own terms.”
Peter Sinclair, Beatbread
BeatBread said it will deploy the new $124 million in funds to expand its sales, marketing and product operations, in addition to providing more funding to artists, writers, and independent label clients.
Peter Sinclair, CEO of beatBread, said: “At beatBread, we’re building a financial foundation for true artist and label independence.
“By giving creators more choice, more access, and more control, we’re helping them stay independent on their own terms.
“We believe in a future where artists and independent labels have the power and freedom to shape their own success, compare multiple funding options from multiple funding sources, and make the choice that’s right for them, whether it’s funding from beatBread, a partner or even a competitor.”
Citi participated through its Spread Products Investment in Technologies (SPRINT) team, which makes strategic investments in specialty lending, alternative assets and real estate.
Lee Smallwood, Citi’s Head of Markets Innovation and Investments, said: “We’re excited to support beatBread as they empower independent artists with tech-driven financing solutions. This investment also marks a meaningful step in our exposure to music royalties as a reemerging asset class.”
“We’re excited to support beatBread as they empower independent artists with tech-driven financing solutions.”
Lee Smallwood, Citi
beatBread says it will additionally use the funds to further expand its proprietary technology and deepen partnerships with distributors, managers, and the wider music industry.
Paul Steele, Executive Partner at Triple 8 Management, who invested in the round, said: “At Triple 8, we believe artists should be able to create and release the music they want, the way they want. beatBread gets that in everything it does. They give artists, managers and labels greater clarity, control, and fair terms.”
“At Triple 8, we believe artists should be able to create and release the music they want, the way they want. beatBread gets that in everything it does.”
Paul Steele, Triple 8 Management
“That’s important in a business where so many people are trying to be anything other than transparent. Every day we see the power of what they’ve built, and that’s why we’re not just using beatBread, but I’m personally actively investing in the company as a whole.”
In February, beatBread launched a Deal Comparison Tool for independent artists and labels, allowing clients to compare multiple funding offers side by side.Music Business Worldwide
