Impartial musicians face vital monetization challenges, starting from the meager per-stream payouts on main platforms to the problem of breaking via the saturated market. In addition they deal with a scarcity of assets and funding in comparison with main label artists, in addition to ongoing debates round truthful compensation and the overwhelming workload of managing all enterprise facets independently. Duetti is a music financing platform that empowers unbiased artists to monetize their catalogs via a data-driven method. The corporate leverages its proprietary forecasting, pricing, sourcing, and advertising and marketing expertise to optimize income streams for artists, offering quick entry to funds with out the executive burden. Duetti has collaborated with over 500 unbiased artists, facilitating offers sometimes starting from $10,000 to $3M per artist.
AlleyWatch caught up with Duetti CEO and Cofounder Lior Tibon to be taught extra in regards to the inspiration for the enterprise, the corporate’s strategic plans, newest spherical of funding, which brings the full fairness funding raised to $88M, and far, far more…
Who have been your buyers and the way a lot did you elevate?
Duetti just lately raised $114M in new funding. This included $34M in fairness financing led by Flexpoint Ford, with participation from present buyers Nyca Companions and Viola Ventures. Moreover, we accomplished an $80M asset-backed securitization (ABS), a pioneering transaction in unbiased music financing that positions us as one of many fastest-growing music rights firms previously decade.
Inform us in regards to the services or products that Duetti gives.
Duetti is a data-driven music platform that enables unbiased artists to monetize their music catalogs on their very own phrases. Via our proprietary expertise, we offer truthful pricing and streamlined offers for catalog gross sales, whereas additionally providing advertising and marketing and optimization companies to maximise an artist’s attain. This mannequin permits indie artists to entry capital rapidly, liberating them from the constraints of conventional file label offers.
What impressed the beginning of Duetti?
My cofounder, Christopher Nolte, and I acknowledged a major hole in accessible financing inside the unbiased music sector. With our backgrounds at TIDAL and Apple Music, we understood the challenges unbiased artists face. Our mission with Duetti is to supply these artists with the identical monetary alternatives which can be usually reserved for these within the main label system. We based Duetti to democratize the music trade, empowering artists to monetize their work transparently and successfully.
How is Duetti completely different?
Duetti stands out by combining data-driven catalog pricing with a sturdy advertising and marketing community, together with playlist placements and sync offers throughout digital platforms. Not like conventional music financing that usually ties artists into complicated contracts, Duetti gives simple, versatile offers and intensive promotional help, permitting artists to profit from an end-to-end answer that grows their viewers and income streams
What market does Duetti goal and the way large is it?
We goal the unbiased music market, which is experiencing fast development globally. Because the sector now accounts for a considerable proportion of worldwide music income, there’s a major alternative to help these artists with monetary and promotional assets, and we’re excited to be on the forefront of this motion. For instance, earlier this 12 months Spotify introduced that 2023 was the primary 12 months of their historical past whereby they paid over 50% of their royalties to the unbiased music sector (exterior the main labels).
What’s your online business mannequin?
Our enterprise mannequin includes buying music catalogs or parts thereof from unbiased artists. These transactions are powered by proprietary pricing algorithms and supported by ongoing advertising and marketing efforts, together with playlist curation and sync placements. Income is generated from the acquisition and subsequent monetization of those music rights, amplified by our promotional community.
How are you getting ready for a possible financial slowdown?
Traditionally, one of the engaging attributes of the music trade from an funding perspective is that it’s comparatively uncorrelated to the broader financial system. Individuals usually proceed to hunt out music, even in difficult occasions.
At Duetti, we view our monetary methods via this lens, specializing in the resilience of our mannequin. We’re dedicated to supporting unbiased artists and making certain they’ve entry to the assets they should thrive, whatever the broader financial local weather.
What was the funding course of like?
The funding course of concerned each fairness financing and securitization, which required structuring with Barclays’ help as the only structuring agent for the ABS.
What are the largest challenges that you just confronted whereas elevating capital?
One of many largest challenges we confronted whereas elevating capital was the necessity for extra schooling about our revolutionary method at Duetti. We’re doing a variety of new issues that require buyers to know the distinctive worth of unbiased music rights and the long-term potential for development on this sector. Educating buyers about our mannequin and its implications for the way forward for music financing was important.
What components about your online business led your buyers to put in writing the examine?
Our buyers acknowledged that Duetti stands out for its distinctive method to music financing and catalog monetization. By leveraging data-driven insights and an revolutionary ABS construction, we’ve been in a position to create a sustainable, scalable mannequin that serves the rising unbiased artist market. With a confirmed potential to extend visibility and distribution impression for artists, and a pipeline of versatile, fast-turnaround financing options, our buyers see Duetti as uniquely positioned to handle the evolving wants of musicians right now.
What are the milestones you intend to realize within the subsequent six months?
We plan to develop catalog acquisitions, and develop our audience-impact applications, like its playlist community and sync placements.
What recommendation are you able to provide firms in New York that do not need a recent injection of capital within the financial institution?
Even with restricted assets, it’s essential to exhibit engaging fundamentals for a enterprise through accretive unit economics. As soon as buyers purchase into that it’s extra simple to acquire capital and scale.
The place do you see the corporate going within the close to time period?
Within the close to time period, we’re targeted on increasing Duetti’s presence in key music markets. Our workplaces in LA, Miami, and London (alongside NYC) will assist us join immediately with much more unbiased artists, enabling us to supply them tailor-made financing options and additional optimize their catalogs’ attain throughout platforms. Our aim is to empower a bigger group of artists and set new requirements in catalog monetization.
What’s your favourite fall vacation spot in and across the metropolis?
Hudson River Park is a good choice.
