Music NFT platform Sound.xyz raises $5m

Sound.xyz has raised $5m in a funding round led by Andreessen Horowitz’s investment firm a16z

Music NFT illustration                                 
Sound.xyz aims to build a community focussed on the interaction between fans and musicians through NFTs - Photo: Shutterstock
                                

Music NFT startup Sound.xyz has raised $5m in seed funding to help musicians earn an income via cryptocurrencies and non-fungible tokens (NFTs).

The round was led by Andreessen Horowitz’s investment firm a16z, with participation from a string of notable investors including Variant Fund, Palm Tree Crew, Weekend Fund, Atelier Ventures and Scalar Capital. Notable music artists such as 21 Savage and DJ Drama also participated in the round.

Bridging the gap between music and technology

Sound.xyz aims to build a community focussed on the interaction between fans and musicians through music NFTs and digital ownership. Through their platform, music curators will be able to add their music onto Sound.xyz and offer a limited supply of NFTs to go with it. This will enable musicians to monetise their music, while listeners will get to discover emerging artists and have a synchronous social experience while also having the ability to support their favourite artists.

And the demand is clear: the startup generated 21 million streams’ worth of revenue for seven independent artists, in under seven minutes.

“We launched with a simple hypothesis: that there is an unmet demand for listeners to support the artists they love. Our initial drops have demonstrated that our vision is possible: all seven drops sold out in under one minute. This is early validation of one of our foundational beliefs: digital ownership, via NFTs, allows artists to make a living off their music with 100 true fans, not millions of listeners,” the company confirmed in a written statement.

Receiving backing from an investment firm such as Andreessen Horowitz’s a16z is good news for the startup, as the firm is well known for their notable investments within the crypto space. Earlier this year, a16z committed $2.2bn through their Crypto Fund III to continue investing in developing crypto networks, as well as launching a $400m seed fund to expand into new technologies.

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