Royalty Exchange

Royalty Exchange: music is ‘one of the most undervalued asset classes today’

Royalty Exchange was set up in 2011 to act as a broker/marketplace to connect owners of copyrights with private investors looking to buy a share of the future earnings of those copyrights.

The company says the model is not about surrendering control of copyrights but rather is based on an earnings-share model. It has just announced that it has closed a $6.4m convertible note to fund its future growth and expansion. Royalty Exchange says it had originally planned to raise $3m but, due to demand, increased the offering.

The company claims that “royalties are the world’s largest asset class without an established marketplace” and it aims to bring greater transparency to this space by creating an online auction platform where bids and final deals are made public – rather than happening in private. They feel this gives a more visible measurement of the value of copyrights.

For example, as of 19th June and with two days left on the auction, a share of public performance royalties earned by jazz saxophonist Kim Waters has attracted 10 bids and has a current price of $21,500 – which increased from a starting price of $17,000.

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