Shodement, a UK-based artist development startup that launched last year, has raised Â£ 10million ($ 13.7million) for an upfront facility it aims to use to finance the careers of independent British artists.
The company, which relies on Axial capital, has raised funds from financial partners including US-based Sound Royalties, which itself has provided advances to artists such as Lil Wayne, DJ Khaled, Malik, Wyclef Jean and others in the US United.
Like sound royalties, Punishment allows artists to take advances without compromising the ownership of their copyrights.
Shodement’s upfront facility allows artists to access up to 12 months of future income in advance, including that derived from concerts, festival performances, and streaming royalties.
Shodement says that its financial partners charge a commission based on a percentage of that money “primarily based on the historical performance of [an artistâs] catalog on streaming platforms or previous shows â.
The company says it has spent the past year in discussions with banks in France as well as with financial partners in the UK to finalize the capital needed for the Â£ 10million advance proceeds.
To date, Shodement has invested in artists like Angelica Lopez and Bulgarian DARA.
Jay Lamusica, CEO of Shodement said: âWe are very happy to launch this product for UK artists. We want this to feel like you have access to an artist-friendly recording contract where you keep your masters, creative control and up to Â£ 10million loaded into your account with just a few clicks from your smartphone .
“We want it to feel like you have access to an artist-friendly recording contract where you keep your masters, creative control and up to Â£ 10million loaded into your account with just a few clicks from your smartphone. “
Jay Lamusica, Shodement
Since Shodement’s new product allows for advances on future shows and live tours – rather than recorded music revenue – the company says some big label groups may even be eligible.
The firm specifies: âThe modalities strongly depend on the risk profile of the artist. The more established the artist, the more predictable the income, which allows for more adventurous terms. “
Lamusica added: âWe have had the pleasure of meeting the biggest banks in France and had important discussions with other seniors in the sector across Europe during the year 2020 to finalize the service of advance. Other sectors are more advanced and we are still behind in many areas. We hope that our new service will allow new superstars to break through.
âArtists receiving our advances would mean that they would ‘sell’ a percentage of their future income for a cash advance today while still retaining creative control and ownership of their work, so that they could immediately progress to it. global scale. “
Shodement says his ambition is for his product to “eventually evolve into a musical version of Blackstone in the back pockets of artists.”
Ahead of launching Shodement in 2020, Jay Lamusica said he generated Â£ 2.7million in revenue for a UK-based PropTech company backed by VC, as well as managing local artists in the music business. .Music trade around the world