ANote Music sponsors Music Royalties Enhanced Strategy Certificates to expand offer to institutional investors as capital raise surpasses €3.3m
ANote Music, Europe’s leading marketplace for investing in music royalties, has announced additional funding and the sponsoring of Music Royalties Enhanced Strategy Certificates, expanding its offer to professional investors.
ANote Music’s sponsoring of Music Royalties Enhanced Strategy Certificates (MRESC), which work in a similar way to Bowie Bonds, provide a new financial product to meet the demand of ANote’s growing customer base of family offices and institutional investors. This will enable the ANote Music team to offer family offices and professional investors a more streamlined service when making investments of €125,000 or more. MRESCs are considered financial instruments under MiFID, and are only offered to qualified professional investors.
Commenting on the product, ANote Music CEO Marzio Schena said: “This news reflects the growing interest that professional investors and family offices have in the music sector. The second half of the year promises to be packed full of more news, as we plan to bring to market our first Asian music catalogue later this summer and launch the ANote Backstage Pass loyalty programme. The royalties market has never been in stronger health and we are expecting lots more growth and more renowned rights holders to list catalogues on the ANote Music platform.”
Additional funding means the total raised by ANote Music to date is now more than €3.3m. More than €500,000 of this funding has come from Algorand Ventures and ACME Innovation, while the additional capital increase has also been funded in part through ANote Music securing the Young Innovative Enterprise Grant through Luxinnovation, enabling the company to receive further backing from Luxembourg’s Ministry of the Economy.
Ryan Terribilini, EVP, Algorand Ventures said: “ANote Music is a natural fit for Algorand Ventures, as it represents a unique and exciting use-case for the tokenization of real-world assets, and offers a previously inaccessible asset class to our ecosystem. We are thrilled to see ANote leverage the lightning-fast speed, reliability, and security of the Algorand blockchain to facilitate the trading and distribution of payouts to investors and artists on their platform. We look forward to the journey ahead with Marzio and his entire team, as strategic partners.”
Sven Baltes, Senior Advisor of Start-up Acceleration at Luxinnovation added: “It’s a real pleasure to see that ANote Music is continuing to develop successfully from Luxembourg! After participation in Fit 4 Start in 2019, the company has benefitted from Luxembourg’s R&D and innovation support and has now also taken advantage of the Young Innovative Enterprise scheme, which has allowed the venture to grow and expand on an international scale.”
The ANote Music platform officially launched on July 28th 2020. In the three years since, the business has gone from strength to strength, successfully listing eighteen catalogues and making it to the Startup World Cup final as the only European company making it to the final stages of this renowned competition, organised by Pegasus Tech Ventures.
Nearly 90% of investors on the ANote platform are profitable, with average annual returns of more than 10%. ANote Music is on track to surpass €500,000 in total royalties distributed before the end of 2023, while ANote Music has an active trading platform with a total valuation of catalogues on the platform of €25m and a free float of €3.7m.
ANote Music’s investors community currently have the opportunity to invest into three direct listings on the ANote platform, in addition to all other catalogues which are tradable on the platform’s secondary market. Through a direct listing, rights holders who previously completed a successful auction on ANote can make a bigger share of their catalogue available for purchase to the market. Currently, Cadillac Records: Music from the Motion Picture catalogue, the influential EDM/Dance record company Lithuania HQ’s, share in the catalogue of DJ and producer Dynoro and the Danish Jazz catalogue of Sundance Records are on sale.
ANote Music CEO Marzio Schena said: “ANote Music has made fantastic progress since officially launching our platform three years ago. This capital raise announcement is evidence of that, and enables us to further expand our operation, grow our ecosystem, and give even more opportunities to rights holders and investors. Seeing partners/clients return to list a bigger percentage of their catalogues on our platform through Direct Listings after having had a successful initial auction means a great deal to us.
It shows they are not only happy with our services, but are also experiencing the benefits that listing with a platform like ours can bring to the market. We’re incredibly proud of our strong customer-return rate, which we see both on the music rights holders and investors side. It's proof that our customers feel like we’re doing something good, and that’s what matters the most to us at the end of the day.”
About ANote Music
ANote Music is the European marketplace for investing in music royalties and was founded in Luxembourg by Marzio F. Schena, Matteo Cernuschi, and Grégoire Mathonet in January 2018. ANote Music has identified the power of music as the next big investment opportunity and created a bridge between the music industry and the capital markets.
ANote Music enables fans and investors to invest into the money generated by music rights, while enabling rights holders to monetise their music catalogues (at fair market terms) ANote Music has an investors community of more than 25,000 registered accounts in 62 countries around the world. ANote Music has an active trading platform with a total valuation of catalogues on the platform of €25m and a free float of €3.7m.. ANote Music has made a royalty payout to its platform’s investors community every 8 days on average in the last twelve months.