Luxembourg-based start-up ANote Music has created a marketplace that allows its users to purchase 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 own 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, told Our.
Early 2020 brought the start-up “the announcement of the closing of our first investment round of EUR 505,000,” he said. Following its July launch, the platform made three music catalogues available 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 were distributed back to investors by the end of 2020.
Hoorelbeke says 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 catalogues to our investor community.”
Other initiatives in the future could be related to cryptoassets. Regarding ANote Music’s potential use of its own native cryptoasset, Hoorelbeke said 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 said, and added:
“It’s not an idea we exclude for the future, but currently not in our development plans.”
The past months have brought an increased use of blockchain technology in music rights distribution. In a similar development, Utopia Genesis Foundation unveiled 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 designed to allow the entity to offer its ecosystem applications by using the full economic security of Polkadot’s validator set, as they said.
ANote Music says investments through its platform can generate 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’ initial invested amounts.