Reactional Music closes seven figure Pre-Series A funding round to power music personalisation for gaming

13 April 2023 - Press release

Led by Amanotes and Butterfly Ventures, with participation from angel investors including Kelly Sumner (formerly Mediatonic, Red Octane, Take 2 Interactive)
 

Reactional Music, the music delivery platform and personalisation engine that connects the worlds of music and games for games developers, music artists and gamers, has closed a new funding round led by Amanotes, the world’s number one mobile music games publisher, and Butterfly Ventures, one of the leading deep-tech, impact focused, early stage VCs in the Nordics.

The Pre-Series A Round is also supported by a number of angel investors including Kelly Sumner, a former chairman of Mediatonic (Fall Guys, recently acquired by Epic), CEO of Red Octane (Guitar Hero, acquired by Activision) and CEO of Take 2 Interactive (NASDAQ: TTWO) (Grand Theft Auto, Red Dead Redemption).

Reactional Music is pioneering the convergence of games and music, enabling gamers to personalise their personas and gameplay with their favourite music – in the same way they do with ‘skins’ and other in game purchases.  

Reactional is a rules-based music engine and delivery platform that connects the music and games industries commercially and creatively, allowing any music to be brought into a game and the entire game’s visuals, music and sound to react live to that music. Something that has not been possible before.

Reactional’s platform opens up a new era of music personalisation, in-game purchase and a faster and more efficient method to create and prototype music for games developers, increasing music choice and ease of use for everyone.

The games market is expected to pass $200 billion* revenue in 2023. In-game purchases accounted for 74 percent of all games revenue in 2021, around $129 billion. Currently in-game music revenues account for less than 0.001 percent** of the total market. In 2023 the total number of global gamers is expected to pass three billion.

Reactional is working on several pilot projects. The Reactional Engine is also being used in a commercially available game for PS5 and PS VR2. The platform will be live in 2023. Reactional has also completed multiple music rights agreements with commercial and production music rights holders including Hipgnosis Song Management.

Amanotes is the number one mobile music games publisher in the world and Southeast Asia’s biggest mobile apps publisher, with the mission of enabling everyone to experience music in any way they want. It has over 2.8 billion downloads and 100+ million monthly active users. With its large user base, strong partner network, and cutting-edge music technology, Amanotes is on a journey to create the world's leading interactive music ecosystem.
Butterfly Ventures is a leading Deep Tech Seed Entry Impact-focused Venture Capital Fund which has invested in over 90 companies and 240 investment rounds. Founded in 2012, Butterfly has offices across the Nordics and Baltic Region in Stockholm, Helsinki, Oulu, Copenhagen and Tallinn. The team is currently investing out of Butterfly Ventures Fund IV which launched in 2022 and is an Article 8 SFDR Green Fund. Butterfly looks to invest at Seed and continue through series A and B into transformative and impactful technologies at the intersection of software, hardware and science. Butterfly Ventures is known for its co-operative approach.

Kelly Sumner has run two NASDAQ listed companies. As CEO of Take 2 he took the company to annual sales of $1 billion, investing in the creation of amongst others, Rockstar Games, launching products such as Grand Theft Auto and delivering a four-fold increase in the share price.

Bill Vo, CEO and Co-founder of Amanotes, shared: "We are thrilled to partner with Reactional Music. This strategic investment allows us to take our music gaming applications to the next level. We are excited to see the impact it will have on our fans worldwide.”

Tanya Horowitz, Partner at Butterfly, said: “We are thoroughly excited to announce this investment in Reactional Music. The company and its technology, the Reactional Music Engine has the ability to change the world of music and gaming in a way these industries have never before seen. Additionally, I am also super excited to flex my prior knowledge of the music industry and video game business and help the company in their thrilling up and coming journey.”

Par Gunnars Risberg, Managing Director of Reactional Music Group AB, said: “This is a key moment in the development of our business. We are fortunate to have both Butterfly and Amanotes leading the round. Each of these organisations brings incredible value to Reactional as we drive the commercial and creative partnership between games, music and creators.”

The Pre-Series A Round follows a number of seed rounds at the Stockholm headquartered business. Funds will be used to deliver the Reactional beta platform and SDK for developers, continue its music licensing operations and scaling of the Reactional team across development, technical support and music supervision.

Reactional Music’s management team includes leaders from music publishing, music composition, games and technology including senior leadership roles in Sony Music and Electronic Arts.

In games the team has led or been part of the commercial, planning and marketing teams for leading gaming franchises including Grand Theft Auto, FIFA, Guitar Hero, Red Dead Redemption, Batman Arkham Asylum and Need for Speed.