Stem Raises $8 Million To Streamline Payments To Musicians
Music tech startup Stem has closed a Series A round of $8 million to expand its suite of products designed to help artists get paid more seamlessly across digital platforms. The round was led by Aspect Ventures and Evolution Media a partnership between CAA, private-equity firm TPG and Participant Media.
The total invested in Stem to date is $12.5 million.
Frank Ocean, Childish Gambino, DJ Jazzy Jeff, Anna Wise, Chromatics and Poolside are among the acts already using the platform to distribute and monetize music and videos.
The founders of Stem are building a platform that they say will streamline tracking and payments to artists across digital services.
That’s something that traditional digital distributors from Tunecore and CD Baby to The Orchard already do pretty well. But Stem believes they can do it better. Payments in 3o days is one promise, along with better told for tracking activity for marketing purposes, as well as, income.
Then there’s the even trickier problem of dividing income when a track involves multiple collaborators. Stem says, just tell them who owns how much of a song and each person or company will get paid their fair share. Stem also has a tool to create and manage contracts with collaborators to ensure everyone is compensated in a clear and timely manner.
How Stem Works