Update – Additional $2M for Soundstripe
Soundstripe, a music production startup that provides video producers with royalty free music, received an additional $2 million in financing from Craft Ventures, just a few months after raising a $4M Series A Investment. Craft is led by David Sacks, founding COO of PayPal and co-founder/former CEO of Yammer, and Bill Lee, a prominent founder and investor in San Francisco.
Soundstripe closed a $4M Series A round of financing in May of 2019. TechCXO Nashville Managing Partner Viraj Parikh has supported Soundstripe as their outsourced CFO since December 2017. Travis Terrell, Co-Founder & Co-CEO Soundstripe, speaks to Viraj’s contributions at Soundstripe below:
[Below are the two press releases issued by Soundstripe]
Viraj has been vital to our organization as we have grown from a small bootstrapped startup to a venture-backed, global operation. He has helped us gain a deeper understanding of our business inside and out, keeping our eyes on the metrics and strategies that matter, as well as introducing us to his business network, which has helped Soundstripe gain several important business partners.
NASHVILLE, TN, August 28, 2019 –Tech-enabled production music startup Soundstripe received an additional $2 million in financing from Craft Ventures, just a few months after raising a $4M Series A Investment. Craft is led by David Sacks, founding COO of PayPal and co-founder/former CEO of Yammer, and Bill Lee, a prominent founder and investor in San Francisco. Craft Ventures invests in outstanding teams who are creating market-defining products, including eSports favorite Cloud9, among many others. This led them to Soundstripe, which was already exceeding 2019 growth expectations, and identified several new opportunities to deploy the additional funding. Soundstripe quickly embraced Craft’s experience, and their credo of “Founders Backing Founders.”
The additional $2 million from Craft will allow Soundstripe to continue expanding its presence even further in the production music space, where its unique subscription model has resulted in over 2 million “micro-licenses” being issued in over 130 countries since its inception in 2016. The funding will also enable the company to invest further in music acquisitions and partnerships, and expand their relationships in that space, especially with producers, songwriters, and engineers.
“This investment by Craft will allow Soundstripe to continue taking tangible steps that give creators the most agile and seamless means to bring content to the consumer, while attracting a wider-reaching subscriber base,” said Travis Terrell, Co-Founder and Co-CEO of Soundstripe. “Our goals are as ambitious as our users’, and we look forward to welcoming more subscribers as we look to expand into the growing podcast segment and international markets.”
“We are impressed with Soundstripe’s growth since its start in 2016,” said Bryan Rosenblatt, principal at Craft Ventures. “Their unique approach to helping creators source high-quality music for film, video, and gaming streams is simple to use, cost-effective, and saves a ton of time. We also share their excitement to expand their team and the products they offer.”
Nashville, TN, May 13, 2019 – Tech-enabled production music startup Soundstripe this week closed its $4 million Series A financing, which was led by Vocap Investment Partners, a leading venture capital firm focused on Series A stage technology companies. Soundstripe has quickly attracted tens of thousands of business customers by offering the most robust and cost-efficient solutions for royalty-free music. The company’s innovation lies with its supply chain for original music. Producing, owning, and distributing its music library directly to filmmakers allows for consistent quality music content and a focus on innovative user experience for the exploding video creator market. With an avid and loyal creator community, Soundstripe has seen triple digit year-over-year growth for the past three years.
The investment will allow Soundstripe to continue expanding its presence in the production music space, where its unique subscription model has resulted in over 2 million “micro-licenses” being issued in over 130 countries since its inception in 2016. The funding will also enable the company to invest further in its original content, expand its product offerings, and enhance its enterprise solution to the growing list of marquee clients.
Soundstripe is built on the mission “keep creatives creating,” enabling video producers to pay a subscription fee for unlimited, royalty-free usage of the music in Soundstripe’s catalog. These micro-licenses enable filmmakers, YouTubers, advertisers, and anyone creating video content to make and release their videos legally without worrying about complicated contracts, expensive fees, and low-quality music. Licenses cover all uses and remain in effect should a video producer choose to cancel their membership or let it expire.
“This investment will help take Soundstripe to the next level of growth by enabling us to create the world’s best music for video and deliver that to customers in the simplest way possible,” said Travis Terrell, Co-Founder and Co-CEO of Soundstripe. “We can now grow our subscriber base by leaning into proven growth channels, expanding our acquisition of original music content, creating new product and feature expansions, and investing in our personnel and office space.”
“It is amazing what the Soundstripe team has accomplished with only $500k of funding prior to our investment,” said Vinny Olmstead, Managing Director of Vocap Investment Partners. “In just three years, they have disrupted an expanding market by creating a simplified and elegant solution. Their unique approach to producing and owning their music fosters a pricing and licensing advantage that has heeded great success. In addition, their vision for future expansion and product development is exciting to say the least. We are thrilled to partner with this team to go attack this tremendous opportunity.”
For more information on Soundstripe, visit soundstripe.com.
Soundstripe is one of the industry’s fastest growing providers of unlimited, royalty-free music for video, driven by a unique subscription model that lets video producers pay a fee for usage of the music in Soundstripe’s catalog. That music is created by a team of composers, mix engineers, songwriters, producers, and other music industry professionals employed by the company to ensure that all tracks are of the highest quality. Licenses cover all uses and remain in effect should a video producer choose to cancel their membership or let it expire. This approach has led to over 2 million licenses being issued for tens of thousands of customers in over 130 countries since Soundstripe’s inception in 2016. The company is based in Nashville and has been named one of the city’s Top 10 startup cultures. For more information, visit soundstripe.com.
About Vocap Investment Partners
Vocap Investment Partners provides venture capital and operational expertise to rapidly growing technology companies in high potential verticals, including: Enterprise Software, Media and Entertainment, Consumer Internet and Healthcare IT. For more information, visit http://www.vocappartners.com.