The Royalty Exchange raises US$2.1 million from Grotech Ventures
The Royalty Exchange secured series A capital funding from Grotech Ventures worth US$2.1 million. TRE was a Raleigh, North Carolina-headquartered company. On the other hand, Grotech Ventures was one of the foremost early venture capitalists in high-potential technology corporations in the US.
TRE attracted the interest of the entertainment and financial industries in 2011. It was the initial online platform in the world that valued the money earned from making songs, producing and publishing. It was also the first platform that sold music royalties. TRE was able to make a transparent market for the owners of royalties who sought after liquidity. It also provided a venue for investors who wanted alternative financial assets that would not be subjected to the customary market dynamics.
"With the worldwide explosion of entertainment properties and distribution platforms, demand for music content is growing exponentially, meaning more royalties paid to rights holders and rising valuations of song and catalog assets," said Sean Peace, CEO and co-founder of The Royalty Exchange. "As an innovator in this space, we feel extremely confident about our ability to maximize value for songwriters and producers while also enabling buyers to make sound, long-term investments."
Music royalties was valued globally at about US$11 billion. They became a looked-for due to their uniqueness and stability as an asset class.