Downtown Music Holdings established a new multi-million dollar fund to support independent artists and startup business owners.
The fund will be backed by a new credit facility with Bank of America, and Downtown will invest more than $200 million.
Downtown’s new $200 million pledge to indie artists and music entrepreneurs comes in the middle of a night outI’m bursting into the realm of independent artists and labels.
Citing Midia data, Downtown notes that indie artists now represent 31% of all streams on Spotifyand separately, those independent artists accounted for 52% of the total number of winners at the 2021 Grammy Awards.
After the deal with Concord, Downtown announced that it would focus exclusively on the music services sector, in a plan it said at the time would support “the phenomenal growth of the independent music economy”.
The company says that the more than $200 million will be used for distribution, publishing management, and artist and label services.
Downtown projected last April that it would generate more than $600 million from its music services businesses, across both recording and publishing, in 2021 alone.
The company currently manages more than 23 million musical properties on behalf of more than 1 million artists and corporate clients, from 145 countries.
“Downtown’s New Foundation is a powerful resource, empowering music creators around the world.”
Randy Hua, Bank of America
Commenting on the launch of the new fund, Randy Hua, Bank of America’s Director of Entertainment Industry Group, said today (March 9) that, “Downtown Music Holdings has built a well-positioned company. to serve the fast-growing independent sector of the music industry”.
He added: “The new Downtown Foundation is a powerful, empowering resource for music creators around the world. Bank of America is pleased to help fund this creative sector of the arts economy. “
“This funding from Bank of America allows us to expand our music services business by giving creators and business owners the ability to fund projects in environments where music services are not available. choices are often inappropriate.”
Andrew Bergman, City Center
Andrew Bergman, CEO of Downtown Music Holdings, said, “Empowering artists has been Downtown’s core mission since the company’s early days.
“This funding from Bank of America allows us to expand our music services business by giving creators and business owners the ability to fund projects in environments where music services are not available. choices are often inappropriate.
“Bank of America recognizes this need in our industry and we welcome their commitment and belief in our mission.”
“This credit facility allows us to empower thousands of artists to use our services.”
Alan Goodstadt, City Center
Alan Goodstadt, Chief Investment Officer of Downtown Music Holdings, added: “We are extremely excited that Bank of America shares our vision of building financial solutions for the industry’s creators. ours.
“This credit facility allows us to empower thousands of artists to use our services.”Worldwide music business
https://www.musicbusinessworldwide.com/downtown-launches-200m-fund-to-invest-in-independent-artists-and-entrepreneurs1/ Downtown launches $200 million fund to invest in independent artists and entrepreneurs