Since 2020, Stem has experienced unprecedented growth by fulfilling a substantial need in the music industry. Stem offers an innovative platform for independent artists to run their music businesses effectively. With the announcement of $10 million in new financing, talent will have improved opportunities to access necessary resources. These essential resources are more critical than ever amid an unstable landscape due to the pandemic.
“Stem is the future of music; Milana’s vision for creating digital autonomy for both creators and music labels is exactly the type of digital tools the music industry is missing,” said Darien Dash, CFO of Global Strategy QC Media Holdings.
Darien Dash is one of the most prominent strategic advisors for high net investment opportunities. His backing only strengthens the platform’s already proven viability in the market.
Stem’s platform has attracted an impressive team of investors, senior advisors, and board members. Stem places artists first on a platform designed to manage their careers better. Furthermore, clients gain access to resources typically only offered through major record studios. The fintech provider doesn’t give a one-size-fits-all solution to artists. Instead, team members work with artists to create a flexible distribution plan designed specifically for them.
New team members, instrumental in making the $10 million in funding possible include the following: Coach K, Co-Founder and COO of Quality Control Music home of Lil Baby, The Migos, City Girls and Lil Yatchy; Mark Gillespie, manager of Calvin Harris; individual managers under Red Light Management; Ron Laffitte of Patriot Management, manager of Pharrell Williams, One Republic, and Alicia Keys; and Baron Davis, two-time NBA All-Star. Stem tapped the preceding professionals to elevate the offerings available to the talent on the platform.
Stem’s specialization is in fintech solutions for the music industry. Although launched in 2015 for independent artists struggling to manage distribution, contracts, and royalties, Stem most recently developed a plan of action to assist with lost touring revenue. With concert venues shut down, the financial loss experienced by independent artists was staggering. Stem launched the comprehensive artist fund, Scale, as a strategy to combat financial hardships. With initial funding of $100 million, these resources act as an advance to continue music careers. More funding will only help with Stem’s goals for expansion.
“Stem was created to provide independent artists with the ability to manage their careers and teams autonomously,” said Milana Rabkin Lewis, CEO of Stem. “With this new round of financing, we are focused on accelerating the portfolio of products offered to our artists.”
Stem collaborates with a diverse catalog of artists. The platform welcomes all genres and has worked with some of the most recognized names in the industry. Grammy award-winning and nominated artists Zac Brown Band, Keith Urban, Foster the People and Designer; multi-platinum artists New Kids on the Block and Freebandz, Future’s record label; and emerging artists Brent Faiyaz, Justine Skye, Kamaiyah, LP, Toro y Moi, and Poolside are just a tiny sampling of the artists who have utilized the Stem platform. Although wildly successful, these musicians have appreciated Stem’s dedication to artist perseverance in an uncertain economic climate.
Artists have plenty to gain with Stem. Most notably, financial independence is maintained. Members of the Stem platform can seamlessly manage their staff, make difficult creative decisions, and handle monthly royalties and splits. With access to Scale, fintech services include a revolving credit line with a fee schedule based on net income. Since platform users determine what earnings percentage will pay down the advance, cash flow isn’t negatively affected. The setup is substantially different from other advancements, which generally requires all earnings to be put toward recoupment.
Stem’s custom solutions are provided by a team of talented founders, board members, and advisors. Team members can match each artist to solutions that help them achieve their creative goals with individualized account support.