Another day, another web3 music company raised millions of dollars in funding aimed at tapping into an artist's most loyal following by fostering a more personal connection between artist and fans.
In an increasingly crowded web3 music scene, London-based startup TRAX (artists.trax.so) said on Tuesday (January 16) that it has launched a decentralized round on the Internet Computer Blockchain (ICP). raised 314,000 ICP in financing (approximately $2.9 million at time of raising).
The injection, completed on December 23, 2023, enables TRAX to operate its Decentralized Autonomous Organization (DAO) under the guidance of TRAX token holders, with the funds allocated to the TRAX DAO treasury and held by token holders. Someone decides how the funds are used.
With approximately 4 million fans, TRAX differentiates itself by serving as a content aggregator and social marketplace specifically for music artists and their die-hard fans (often referred to as "superfans").
This demographic represents a $4.2 billion addressable market and spends 80% more monthly on music than casual listeners, according to Goldman Sachs' Music on the Air Report. Goldman Sachs predicts that by 2027, super fans The monetization will add $2 billion in incremental revenue to streaming platforms and $4 billion by 2030.
By facilitating exclusive content placements and events, TRAX aims to help artists build closer relationships with their biggest fans and generate higher revenue, in line with broader industry trends, as evidenced by recent statements from Universal Music Group CEO Lucian Grainge At this point, he emphasized the importance of cultivating super-fan experiences to drive revenue.
"The next focus of our strategy will be to grow the pie for all artists by strengthening artist-fan relationships through super fan experiences and products," Grainge said earlier this month.
TRAX co-founder and COO Henry Wilson explained that fans are “looking for a less anonymous music experience, and when fans purchase content on TRAX, they are actively building relationships with artists to support future projects and Bringing everyone in the community closer together.”
Nearly three months ago, TRAX's Class of '24 artist event featured ten up-and-coming global acts, including British climbers DEIJUVHS and Master Peace, celebrating unreleased music with A-list fans.
TRAX said it is currently looking to recruit and develop more artists in the super-fan economy.
TRAX’s funding round follows major investments in other web3 music platforms, recent examples include Tune.FM (which raised $20 million from LDA Capital) and DJ TOKiMONSTA-founded Sona (which launched after raising $6.9 million in seed funding web3 music streaming platform).
Swedish platform anotherblock, which allows fans to invest in music by purchasing NFTs, raised an additional €4 million ($4.3 million) in a May 2023 investment round.
Back in July, UMG said in a study of music streaming subscribers that "approximately 30% are huge fans of one or more of our artists."
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