AmplifyX, a Los Angeles-based start-up, is gearing up to enable investors to back the music industry… the platform will allow investors to build portfolios which directly fund specific musicians.
They will receive royalties from streaming revenue and can monitor an artist’s data in real-time to make decisions on whether to keep investing in them.
AmplifyX’s founder, ex-Ernst & Young employee Adam Cowherd, says there needs to be a new approach to royalties… “Musician financing has not been rethought or revolutionized in the last eighty years.”
The start-up wants upcoming and established artists to retain larger control on their intellectual property. It claims artists can pick up to 90% of royalties. As opposed to the industry standard, which it says sits at around 20%.
“The democratic nature of investing through AmplifyX promises a more fan- and merit-based field of artists… It should especially appeal to younger investors who know which artists’ voices they feel are worth lifting up.”