Last week saw Trac, another startup distribution platform for music artists, raise $2.5 million in new funding, as dot.LA reported.
into a music tech hotbed-a trend that makes sense given the city's status as a global entertainment capital and home to major labels like Universal Music Group. Stem is among a new generation of startups that are turning L.A. “It makes it possible for other really interesting economic things to happen for artists.”
“Our belief is: What if we build a system that can become the system of record for who gets paid what and how?” she said. With avenues for music monetization-from streaming platforms to home devices-constantly expanding, Stem aims to provide artists with a “financial backbone” allowing them to plan their projects and income, Lewis added. “There’s this notion of a starving artist for a reason: It’s because the business is really complex, and it’s gotten more complex.” “Getting into music has always been hard for anyone that works in music,” Lewis said. Stem was born out of Lewis’ desire to streamline the process. Stem co-founder and CEO Milana Lewis told dot.LA that she launched the startup based on her experiences as a talent agent for industry heavyweight United Talent Agency-a role in which she saw firsthand how difficult it was for artists trying to aggregate multiple revenue streams.
While only Stem-distributed artists can currently access its financial tools, the new funds will go toward expanding the platform’s existing royalty accounting features to other music distributors. Its dashboard includes tools for artists, managers and labels to oversee their revenues, split funds with collaborators and receive automated payments. Since launching in 2015, Stem has merged financial management tools with music distribution capabilities, working with independent record labels like Big Loud as well as major artists like Wiz Khalifa. Block notably paid nearly $300 million last year to acquire a majority stake in TIDAL, the music streaming service backed by rapper Jay-Z.Įxisting investors Slow Ventures and Quality Control also pitched in on Stem’s new round, which takes the Los Angeles-based startup’s total funding to around $40 million. Stem, a music tech startup focused on helping artists with distribution and payments, has raised $20 million in a new funding round.įintech-focused venture capital firm QED Investors led the funding and was joined by Block, the Jack Dorsey-led payments tech company formerly known as Square.
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