beatBread launches investor network to give artists more economic leverage

20 October 2022 - Press release

New service enables music companies, distributors and high net worth individuals to bid on catalog and new music projects on the beatBread platform

beatBread (www.beatBread.com), the funding platform for independent musicians and labels, has announced an exclusive investor network that adds funding from music companies and professionals, distributors and high net worth individuals to its existing pool of institutional capital. 

The new feature will allow artists who have received a qualifying offer from beatBread to highlight tour dates, collaborators, marketing partners and other initiatives to a range of pre-approved investors. Investors within the network can use this information to bid on providing advances on some or all of the royalties associated with an artist contract, giving artists the potential to receive better economic terms than offered through beatBread’s automated process alone.

Artists who qualify for the invite-only investor network can set their minimum terms, and if no combination of funding offers from within the network meet the artist’s threshold, they’ll be able to accept their original offer from beatBread or walk away entirely.

“Put simply, beatBread is in the business of empowering artists, first by expanding access to capital while retaining control and ownership and transparency, and now with this new feature, leverage to get the best terms possible,” said beatBread CEO Peter Sinclair. “We use algorithms to make investment decisions, but we know that some investors may prefer to utilize experience, taste and other subjective factors. Both approaches have their place. If our own capital gets displaced by higher bids from network investors, then we’ve succeeded in our mission to empower artists, who deserve to get the best options when financing their careers.“  

beatBread’s investor network does not accept investment from fans, avoiding the significant illiquidity and brand risks created by fan-based crowdfunding. Investors admitted into the network all have an interest and demonstrated financial capacity to fund multiple artists at scale.  These investors bring additional funds to the millions already invested in artists each month from beatBread’s institutional capital.

Since launching in November 2020, beatBread has leveraged its groundbreaking chordCashAI™ technology to make financial advances to almost 500 artists and labels across multiple genres, six continents, and a broad range of career stages. 

Advances offered leveraging beatBread’s algorithmic approach range from as little as $1,000 to as much as $2 million per artist, with options for artists to receive sizable advances on new and unreleased music.  Advances within the network can go even higher. In both cases, advances are repaid from a share of an artist’s streaming and airplay revenues, over a period of the artist’s choosing, giving artists full choice and control over their distribution, marketing and production partners and ownership of their music.