Dune, a UK-based startup that lets music fans buy tradable stakes in artists based on streaming performance, is close to completing a GBP £2 million (USD $2.6 million) Series A funding round as it prepares for a November launch.
The Manchester-based company, founded by music entrepreneurs Paul Knowles and Paul Bowe, has developed a platform where fans can buy stakes in musicians that fluctuate in value according to daily streaming data.
Knowles and Bowe bring experience in professional audio and artist services. Dune did not disclose the investors participating in the Series A round or provide details on the company’s valuation.
The funding will support the platform’s rollout as it seeks to create “a new music economy predicated on monetizing streaming in an equitable way.”
The company is now in consultation with the wider music industry ahead of its public debut next month.
“Dune acknowledges the fact that income from streaming simply isn’t enough to sustain most artists and that 99.9% of them face a funding gap.”
Paul Knowles, Dune
Knowles said: “Dune acknowledges the fact that income from streaming simply isn’t enough to sustain most artists and that 99.9% of them face a funding gap. Data shows that only 0.1% of artists generate enough revenue from streaming to cover modest monthly outgoings.”
The platform’s model allows fans to buy stakes in artists, with values changing based on streaming performance. Fans can trade these stakes on the platform, with artists receiving revenue and fan insights from transactions.
Two independent artists have committed to the platform including Hertfordshire-based band The Hunna and Manchester-based American songwriter and multi-instrumentalist BC Camplight.
BC Camplight said: “Within the current music industry it can feel like there are fewer and fewer ways for artists to thrive financially and truly engage with fans on digital platforms.”
“I’d encourage artists to sign up; it cuts through the fog and lets artists and fans find each other in a completely new way.”
BC Camplight, Artist
“Dune feels like it’s been created to change that, which is really refreshing to see. I’d encourage artists to sign up; it cuts through the fog and lets artists and fans find each other in a completely new way.”
Artists can claim pages on Dune without subscription fees. The platform provides administrative tools and tutorial videos to help musicians manage their engagement with fans who purchase stakes.
Bowe said responses during the consultation phase with artists, managers and the wider music industry “has been incredible.”
“By making Dune fair, equitable, easy-to-use and fun we have created a unique opportunity to deliver new income streams, create more engagement opportunities, reward fans and ensure that streaming revenue is maximized for the benefit of artists.”
Music Business Worldwide