Stems, a decentralized music platform, closed a $4 million pre-seed funding round.
The investment firm Ideo CoLab Ventures led the funding round, with additional participation from Collab+Currency, Village Global and Polygon Studios. Notable crypto firms such as Merit Circle and Yield Guild Games participated as well, along with FireEyes, NoiseDAO, Jump, GSR, Akatsuki and others.
Stems is a decentralized music NFT platform that encourages artist and fan engagement through web3 tools. For instance, an artist can release their music stems — or a composite of drums, bass, guitar and other individual musical tracks — to the Stem community. Users can then remix the audio into new music NFTs, and the original artists receive royalties upon sale.
The startup will launch its platform on Oct. 6, at which time seven NFTs costing 100 MATIC each will be minted.
Music NFT platforms have garnered increased interest in 2022. The music NFT platform HitPiece launched in August of this year (after a rocky beta period). Warner Music Group, a major American record label, partnered with OpenSea last month to facilitate music NFT sales.
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