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10/12/2023
Article
Startups for Music Fans Are a Hit With Investors

Music startups are still in tune for creator economy investors.

Fave, an app for music fans to connect with artists and each other, said it had secured $2 million in funding. It’s trying to raise an additional $4 million for the round, which would bring its total funding to $8 million. The company said existing investors including Female Founders Fund, Warner Music Group and Sony Music had returned for this round.

The fundraising adds to a growing number of deals for startups that are focused around musical creators and their fans. In the third quarter, global music startups raised nearly $89 million, or nearly 20% of total funding. Funding rose from $85 million in the second quarter and $26 million in the year-ago third quarter, according to The Information’s Creator Economy Database. Some are choosing unconventional means: Gigmor, which helps independent musicians get booked, earn money and reach fans, is currently raising through the crowdfunding platform WeFunder.

Investors remain interested in music startups, particularly ones focused on fans, whose intense communities have grown on social media networks like TikTok, said Jacquelle Amankonah Horton, founder and CEO of Fave. These platforms help artists get discovered and gain followings, and fans power much of that growth.

Fave has more than 50,000 users and is “in the early stages of revenue,” Horton said. The Zurich-based startup has inked deals with artists and their teams, as well as labels and entertainment companies, to provide analytics and details on specific fandoms. This model allows Fave to remain free for users, Horton added. The app takes a 2.4% transaction fee in its marketplace, where users sell merchandise and tickets.