(Hypebot) – Royalty marketplace Royalty Exchange, which had auctioned the rights to Coolio’s “Gangsta’s Paradise," had raised $3.4 million through October 2014 from two investors – Grotech Ventures and IDEA Fund Partners. Now the startup has run out of money.
Online marketplace Royalty Exchange is being sold after failing to raise needed additional capital. “Our model needed continuous funding,” Sean Peace, founder of the North Carolina based startup told the local Triangle Business Journal . “We just weren’t able to continue to secure that.”
Peace did not disclose the buyer or the terms, saying that he’s no longer involved with the company and that the sale is still in the paperwork phase.
As of this writing, there were no active deals on the Royalty Exchange site. There's also no word yet as to whether or not Royalty Exchange's sister site Royalty Guru is also part of the sale.