a 2 i m

Associate Member Spotlight: SongVest

SongVest is the stock market for music. We help labels carry out initial public stock offerings that sell shares of future royalties. In today’s music business, labels benefit from these alternative financing options to fund their projects and create an entirely new relationship with fans who become investors.

The latest news

We’re moving quickly to add record labels for our launch after positive initial comments from the Securities Exchange Commission.

What’s the value to Record Labels?

Fans are now Investors
This new breed of investor/fans are different than normal fans.  They have a vested interest in making a success of an album by a favorite artist. SongVest allows you engage these new investor/fans in ways that can actually increase record and streaming sales—think of these fans/investors as an online street team that helps spread the word about an album. A fan multiplier effect grows the size of your street team. Because we bundle multiple albums together, all of the albums’ investors have a vested interest in selling your album.

SongVest offers record labels the ability to convert future royalties into cash today, even before the album is released. By selling these future royalties to fans you have two benefits: the ability to collect the royalties now, and the opportunity to create a new revenue stream. For example, a label could sell a share of future royalties for $1 while expecting to pay 75 cents to investors over time, resulting in a 25-cent profit per share before the album is released.

How it works
The Jobs Act of 2012 allows non-accredited investors to invest in small, alternative IPOs that raise up to $50 million. A record label partners with SongVest to forward royalties on future projects through an IPO. Investors receive stock that grants the right to a share of the projects’ royalties. For example, a label could sell 25 percent of the royalties in 5 upcoming albums. Investors would buy shares of a bundle of albums and receive royalties when they are distributed. The label has the control over the type and percentage of royalties included.

Why work with us
Experience and innovation. SongVest co-founder and CEO Sean Peace is a veteran of royalty-based music investments. He founded The Royalty Exchange, the first online auction marketplace buyers and sellers can purchase music and other royalty streams. Co-founder Roy D’Souza has over 10 years of experience of providing intellectual property valuation services to clients.

Reach out to us
Visit SongVest to learn how we can help your record label.

SongVest was founded in 2007 by entrepreneur Sean Peace, a founder of Royalty Exchange, the first music marketplace. Now with SongVest, Peace has created a new type of marketplace for music royalties. Music creators can use SongVest to auction rights to future royalties of their recordings and compositions. After the arrival Jobs Act of 2012 that allows for alternative investments, SongVest will create initial public stock offerings of music rights sold by record labels in return for funding for albums. The SongVest IPO will be unique for the relationship is builds between label, album and artist: fans, as well as other non-accredited and accredited investors will be able to buy stock in IPOs to support their favorite artists.

About A2IM:
A2IM is a 501(c)(6) not-for-profit trade organization headquartered in New York City that exists to support and strengthen the independent recorded music sector. Membership currently includes a broad coalition of more than 700 Independently-owned American music labels. A2IM represents these independently owned small and medium-sized enterprises’ (SMEs) interests in the marketplace, in the media, on Capitol Hill, and as part of the global music community. In doing so, it supports a key segment of America’s creative class that represents America’s diverse musical cultural heritage. Billboard Magazine identified the Independent music label sector as 37.32 percent of the music industry’s U.S. recorded music sales market in 2016 based on copyright ownership, making Independent labels collectively the largest music industry sector.

Learn more about A2IM here.
For information about how to join our community, see here.