Last week, a new $200 million-backed indie music financing platform emerged from “stealth” after more than a year of development.
Pipeline was launched by Matt Spetzler’s investment firm Jamen Capital, with ambitions to become the “largest funder of independent music globally”.
Just days after going public with the new platform, Spetzler’s Pipeline has already struck a partnership with independent power player Merlin.
Pipeline’s deal with the indie licensing agency, which claims to represent 15% of the global recorded music market, will give Merlin members access to advances against digital royalties.
In what’s being billed as a “significant expansion of Merlin’s suite of member services,” Pipeline says that it can offer the org’s members access to advance funding “without the bureaucracy of traditional financing sources or the need to hand over rights as the price of access to funds”.
The companies claimed in a press release that the “new tool is designed to enable Merlin members to grow their businesses and unlock the value of future revenues without disrupting existing commercial relationships”.
They stressed that the service is “entirely optional” and that “participation does not prevent Merlin members from entering into financing or commercial arrangements with other parties”.
Pipeline Co-Founder and Executive Chairman Matt Spetzler has completed more than 10 investments in music/audio, totaling over $5 billion in value, and currently serves on the boards of companies including Kobalt, Soundtrack, Recognition Music Group, and Muse Group.
Before launching Jamen Capital, Spetzler was a Partner and Co-Head of Europe at private equity firm Francisco Partners, where he played a key role in the firm’s ~$750 million majority acquisition of Kobalt Music Group in 2022.
“Merlin represents the heart of the independent music sector, and we’re proud to partner with them on a solution that addresses a long-standing gap in the market,” said Spetzler.
“Merlin represents the heart of the independent music sector, and we’re proud to partner with them on a solution that addresses a long-standing gap in the market.”
Matt Spetzler
He added: “Advances against digital royalties for the independent music community are now not only possible, but practical and scalable.
“Our goal with Pipeline is to provide transparent, creator-friendly capital, and this partnership allows us to deliver that value directly to Merlin members worldwide.”
Charlie Lexton, CEO of Merlin, added: “Merlin’s partnership with Pipeline is a gamechanger.
“We can now offer Merlin members a streamlined path to advance funding that doesn’t require them to compromise their rights or business plans.
“We’re supporting our members’ ability to compete, while preserving their freedom to work as they choose.
“As the independent sector continues to grow it is essential that our members have access to sophisticated financial tools on fair, transparent terms.”
Charlie Lexton, Merlin
He added: “Merlin members work on their own terms. They need support that speeds them up, not processes that slow them down.
“With Pipeline, we have found a partner that understands that, and together we have developed an offering that meets that challenge.”
Charlie Lexton continued: “As the independent sector continues to grow it is essential that our members have access to sophisticated financial tools on fair, transparent terms.
“This partnership with Pipeline is about removing friction, empowering independence, and ensuring our members are best positioned to invest in their businesses and their artists with confidence.”
Pipeline has launched into an increasingly active landscape of alternative funding options for indie artists, labels, and distributors.
Elsewhere in the space, prominent music financing platform beatBread has deployed over $100 million across 1,700 funding agreements since its founding in 2020.
The company raised $124 million in fresh funding last year from backers including equity capital from Citi, Deciens Capital, Mucker Capital, and Advantage Capital.
Elsewhere, music investment company Duetti secured $200 million in fresh financing last week.
Music Business Worldwide
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