Swedish music publisher Corite has raised $6.2 million in a private funding round for its forthcoming blockchain-powered sister project Corite CO.
The startup welcomed investment from a slew of backers including ChromaWay, Kyros Ventures, KuCoin Labs, Gate Labs, MEXC, Shima Capital, Rarestone Capital and others. Existing supporter Charles Goldstuck, co-founder of LA-based record company Hitco Entertainment, also renewed his commitment to the venture.
The latest raise follows an earlier seed round that saw the project raise $2.2 million, having received support from many of the same prominent music and crypto firms.
A New Funding Paradigm
Corite’s upcoming token sale will enable retail investors to follow suit via Gate, KuCoin, MEXC and a soon-to-be-revealed fourth platform.
Upon its launch, the Fan Power blockchain platform will give active holders of the platform’s native $CO token the opportunity to access VIP experiences and bootstrap new music projects in exchange for a percentage of artists’ streaming royalties. As with other blockchain-based platforms, there will be a governance mechanism that gives token-holders the opportunity to influence the venture’s future direction, too.
Corite’s pivot to using blockchain for music crowdfunding will see the startup further develop its relationship with fellow Stockholm-based company ChromaWay, a key investor that is heavily involved with distributed ledger technology via its own Chromia platform.
Through fan funding, Corite aims to disrupt a music industry that has provided limited choice for artists and has a hard time delivering value for the growing number of artists choosing to stay independent. By decentralising the traditional financing model, the platform intends to introduce a new paradigm that strengthens the bond between listeners/supporters and the musicians they most admire.
Last month, Coritepartnered with Australia’s largest music studio complex 4000 Studio, home of award-winning producer Konstantin Kersting. The alliance will give existing Corite artists the opportunity to work with 4000 Studio’s producers, with the studio in turn promoting the Fan Power blockchain within its community. In a statement, Kersting enthused that Corite was “shaping what the future of the music industry will look like.”
Empowering Artists Through NFTs
The benefits to the artist of onboarding to Corite are said to extend beyond mere financing, however. In addition to receiving funding for studio time, marketing and promotion, musicians can create and sell digital merchandise including non-fungible tokens (NFTs). Such tokens have become hot commodities in the entertainment industry, with film studios, artists, actors and influencers embracing the technology through auctions.
Where music is concerned, NFT collections can comprise rare artwork, GIFs, tracks, albums, audiovisual collectibles and other physical and/or digital items. Recently, collections by David Bowie, Nirvana andthe Beatles were announced, with the latter featuring such coveted items as digital versions of the hand-written lyrics for Hey Jude.
While NFT marketplaces such as Rarible, Starly and YellowHeart primarily handle NFT auctions – typically relating to memorabilia – Corite seeks to become a one-stop shop for musicians, artists and listeners: a place where creators can reward loyal fans with special tokens, merchandise and exclusive experiences, while being fairly compensated for their output. NFTs minted on the platform can also be traded among fans to stimulate a thriving economy.
Last year, users sent approximately $44.2 billion worth of cryptocurrency to ERC-721 and ERC-1155 contracts, the specific Ethereum smart contracts tied to NFT marketplaces and collections. Such eye-watering volumes are likely to rise with the emergence of platforms like Corite, a fact that is increasingly being noted by eager investors.
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