Luxembourg-based start-up ANote Music has built a marketplace that enables its users to buy and sell music rights using blockchain technology, raising EUR 505,000 (USD 612,000) last year from its first investment round and attracting EUR 385,000 (USD 467,000) from investors.
The firm is not ruling out issuing its cryptoasset in the future, although no binding decisions have been made yet.
It “is important to establish that relationship of trust with those who are going to use [our platform]. Blockchain has been playing an important role for us in this regard,” Niels Hoorelbeke, Marketing and Business Development Strategist at ANote Music, stated.
Early 2020 brought the start-up “the announcement of the closing of our first investment round of EUR 505,000,” he stated. As a result of its July launch, the platform made three music catalogs ready to investors at auctions and a further two in late 2020.
“All five catalogs successfully completed raising the auction target and are together good for a totality of over EUR 385,000 committed by investors,” according to Hoorelbeke, who added that EUR 12,000 was allocated back to investors by the end of 2020.
Hoorelbeke announces that the team “have seen an increase in people searching for alternative investment solutions,” owing to which “2021 will be the year in which ANote Music will look to expand services and grow strong.” They’ll also “be looking to bringing more investment opportunities and music catalogs to our investor community.“
Other drives in the future could be related to crypto-assets. Regarding ANote Music’s potential use of its native cryptoasset, Hoorelbeke mentioned that the “way our system and services are designed, it was not per se necessary to tokenize our assets or develop an own crypto, so to make music investments easy accessible to everyone, we opted to work without an own native crypto asset,” he stated and added:
“It’s not an idea we exclude for the future, but currently not in our development plans.”
The past months have created increased use of blockchain technology in music rights distribution. In a similar subject, Utopia Genesis Foundation revealed plans this month to bring more than USD 1 billion worth of tokenized music rights to a polkadot (DOT) parathread in 2021, moving away from Ethereum (ETH).
The move is meant to allow the entity to offer its ecosystem applications by using Polkadot’s validator set’s full economic security, as they announced.
ANote Music says investments through its platform can create an average expected yield of 7.91%. A 4% distribution fee is withheld for shares acquired in the primary market and 8% for shares traded on the secondary market. The distribution fee is capped at 0.5% of users’ primary invested amounts.
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