(Hypebot) — Music fintech startup HIFI has acquired 2019 Techstars Music Accelerator graduate The Music Fund which provides direct artist funding based on streaming stats.
“Our prediction model enables us to underwrite a variety of short-term financing solutions to artists at absolutely no risk to them”
The Music Fund promises eligible artists cash within 24 hours for a portion of future royalty income over a defined period with the creators retaining full ownership of copyrights and earnings from future releases.
HIFI, which describes itself as a “financial rights organization for the music industry,” has “built the leading financial platform for music creators and their teams available today,” according to The Music Fund co-founder and CEO John Funge. “Our prediction model enables us to underwrite a variety of short-term financing solutions to artists at absolutely no risk to them, empowering them to record music, go on tour, or market current projects without having to sign away any long-term rights. As we join the HIFI ecosystem, we’re looking forward to leveraging our automated valuation model to deliver an entirely new class of innovative financial products to the music creator community.”
Funge joins HIFI as Chief Technology Officer and his co-founder and CTO Thomas Jerde has been appointed Vice President, Data Science at HIFI.
The terms of the deal were not disclosed.
Bob Moczydlowsky led Techstars Music and Warner Music Group had invested $120 million in The Music Fund beginning in early 2019.
HIFI, which launched last year, says that it has thousands of applications for membership and is already tracking hundreds of millions of dollars in royalties on behalf of its clients.