A New LA Company Aims to Give Fans a Way to Invest, Literally, in the Musicians They Love

Sam Blake

Sam primarily covers entertainment and media for dot.LA. Previously he was Marjorie Deane Fellow at The Economist, where he wrote for the business and finance sections of the print edition. He has also worked at the XPRIZE Foundation, U.S. Government Accountability Office, KCRW, and MLB Advanced Media (now Disney Streaming Services). He holds an MBA from UCLA Anderson, an MPP from UCLA Luskin and a BA in History from University of Michigan. Email him at samblake@dot.LA and find him on Twitter @hisamblake

A New LA Company Aims to Give Fans a Way to Invest, Literally, in the Musicians They Love
  • AmplifyX launches next week to offer shares in musicians' future royalty income
  • Its first tranche is two Detroit-based musicians, each of whom are offering 20% of future royalties for $10,000 at an effective $25 share price
  • In the future, Amplify plans to build out a secondary trading market and hopes to expand beyond music and into the broader creator economy

Rising Detroit rapper and singer Rocky Badd has always been about the street, but soon she and her manager Curtis McKinnon will be going public.

Next week, they'll be selling shares worth 20% of Rocky's future royalty income for $10,000. In doing so, they're also hoping to gain a legion of super fans financially and emotionally invested in her success.


The exchange will be powered by L.A.-based AmplifyX, one of a growing number of online investment platforms made possible by 2015 regulatory changes around crowdfunding. An extension of President Obama's 2012 JOBS Act, the new rules eased restrictions on fundraising and investing, enabling the budding democratization of fractional ownership. Non-accredited investors can now add to their portfolios shares of vintage cars, collectibles like sneakers and trading cards, famous artworks and more.

"Music hasn't really changed from a financing perspective in decades," said Adam Cowherd, Amplify's co-founder and chief executive. His platform aims to address that.

Detroit rapper and singer Rocky Badd, aka September Briyonna-Michelle.

Badd, whose real name is September Briyonna-Michelle, is using Amplify to offer 400 shares tied to her upcoming album, "Respect the Writer 2," for $25 each. Each share is effectively a claim on 0.25% of the streaming and digital download royalties generated by the new release and a few additional songs. Jay Vinchi, another musician from Detroit, is also putting up shares for his upcoming album as part of Amplify's first tranche of offerings.

In L.A., Cowherd has been hard at work. A former physicist turned investment banker, he and his small team had built the infrastructure to run a securities exchange by the end of last year. They waited, though, to complete what would be an 8-month gauntlet to gain regulatory authorization from FINRA, a private financial regulator, and the SEC, its public sector counterpart. The company finished that process in August, and is now awaiting final approval to open its first offering, which Cowherd expects to arrive early next week.

He thinks the wait for that regulatory compliance will pay off by helping Amplify to compete with other platforms that offer similar services, such as Royalty Exchange and Vezt, which also allow fans to buy shares of artist royalty streams.

This first fundraise will be open for 60 days and royalty payments will be distributed to shareholders annually; eventually that could shift to quarterly, Cowherd said.

For artists like Rocky Badd and Jay Vinchi, one obvious appeal to selling shares in their future royalties is earning instant cash – not exactly easy to come by for a musician today.

Rocky Badd's deep connection to her fanbase gives her manager McKinnon and Cowherd confidence she'll have no trouble raising the $10,000. In May, she hosted a livestream concert on Zoom that sold over 1,000 tickets. The YouTube video for her song "Vindictive" has over 8 million views.

With the money raised, McKinnon will look to further spread Rocky Badd fever.

"Rocky can post something and easily get thousands of streams and likes, but now we're trying to get to the millions," he said.

The Amplify offering also has the potential to inspire a squadron of fans to become a de-facto marketing department.

"If we get multiple fans [to buy shares], we now have promoters for a lifetime, because the better that album does, the more revenue share for them," said McKinnon, who — in addition to managing Briyonna-Michelle — runs CrowdFreak, an online platform that helps up-and-coming artists find performance and exposure opportunities.

A rising number of artists are eschewing record labels in favor of ad-hoc, artist-support services, many of which are enabled by technology. Cowherd sees AmplifyX one day building further on that trend, morphing into an entire "record label á la carte."

"Long term, it would basically be a record label in your pocket. We'd like to build that into the native mobile app from the artist perspective, where not only do they have their investor data, and their streaming and social data, but they could also say, 'I'm looking for PR', and we give them three options that have already been vetted through us, and they can make those connections and bookings right through the application," Cowherd said.

AmplifyX co-founders Bobby Kamaris (L) and Adam Cowherd.

Even if Amplify remains solely a financing platform, he sees expansion opportunities in working with more artists and eventually selling shares in legacy catalogs.

"How cool would it be for somebody who's part of the KISS Army to actually own a fractional piece of 'Detroit Rock City' or something like that?"

The company also plans to build a secondary market for trading shares, he said.

For investors, getting in on the streaming market could be attractive. From 2014 - 2019, revenue from streaming saw a 43% compound annual growth rate, and Goldman Sachs projects the $11 billion market to quadruple by 2030. And since streaming royalties are generally uncorrelated with investment returns elsewhere, they provide a means for investors to reduce risk across their investment portfolio.

Given these factors, Cowherd expects investment to come from cryptocurrency investors and the growing crowd of young traders, along with artists' super fans.

"There's a growing demand among Gen Z for investing," Cowherd said. "My uncle is the principal of a school in Michigan, and he actually had to ban Robinhood because so many kids were day-trading."

Down the road, Cowherd expects to see a lot of engagement from that younger generation. They may have the chance to invest not only in musical projects but also in other content creators as well, and the businesses those creators and influencers may start.

"I really want to power the entire creator and influencer economy," Cowherd said.

Amplify has raised about $250,000 in pre-seed funding and plans to raise a $2-3 million seed round in Q1 or Q2 next year.

For now, it'll generate revenue by taking a percentage of the capital raised from the revenue-share offering. Later, it plans to take an affiliate fee for its record label á la carte service, and a small fee for transactions through its secondary market. It may also offer debt financing, such as for underwriting concert tours.

Other companies will be competing to provide innovative forms of artist financing. L.A.-based Stem, for example, recently opened a $100 million debt-financing arm to loan artists advances against their future royalty income. Kobalt, a London-based firm, is also in the competitive mix.

Hipgnosis, which has been on a spending spree of late to allow investors to buy rights to songs and musical IP, represents the broader bubbling activity in the acquisition of music publishing rights.

Cowherd said one key way he aims to differentiate Amplify is by facilitating direct connections between fans and artists.

For Briyonna-Michelle, that connection is about more than a financial transaction.

"For a lot of people, especially people in my city, we don't really invest in nothing. You buy jewelry, you buy clothes, you buy cars or whatever and you just keep up, but it's like, at some point, when we get older, you're just gonna say you had it," she said. "I feel like no matter what the album does, it's still, like, at least you tried to invest in something, whether it worked or it didn't. I feel like it motivates people to start putting some money behind something where later on in life you can get something out of it."

    Come next week, a new set of fans will begin hoping one day to get something out of their investment in her.

    ---

    Sam Blake primarily covers entertainment and media for dot.LA. Find him on Twitter @hisamblake and email him at dot.LA

    https://twitter.com/hisamblake
    samblake@dot.la
    Rain's Latest Funding Fuels the Future of Financial Wellness

    🔦 Spotlight

    Happy Friday,

    This week, the LA tech scene buzzed with news that Rain, a leader in financial wellness, hassecured $75 million in Series B equity funding, spearheaded by Prosus. This isn't just another funding round; it's a pivotal chapter in Rain's mission to transform how American workers interact with their earnings.

    Since its inception, Rain has been at the forefront of innovation in financial technology, particularly with its earned wage access solutions. The concept was simple yet revolutionary: allow workers to access their earned wages instantly, mitigating financial stress and dependency on high-interest payday loans. This vision quickly gained traction, propelling Rain from a promising startup to a key player in the fintech space.

    What makes this Series B funding particularly noteworthy is what it represents on a larger scale. It's not just an influx of capital but a strong endorsement of Rain's potential to expand even further. With previous rounds fueling their initial growth and strategic partnerships, such as their notablecollaboration with Marqeta to enhance payment technologies, Rain has steadily built a foundation not just for success but for significant impact.

    As Rain secures this significant new funding, their initiative to reshape financial wellness is set to expand dramatically, showcasing the profound impact tech can have on everyday financial challenges.

    Looking forward to seeing how their innovations will drive change in the financial landscape.

    🤝 Venture Deals

    LA Companies

    • Dosen, a Los Angeles-based HRtech startup founded by Ronan Wall, Victor Burke, and Cian McCarthy, has secured $2.3M in an oversubscribed pre-seed funding round led by Affinity Ventures. The company offers an AI-powered platform that aligns employee-led learning with business goals through personalized, gamified development programs. The funds will be used to scale the platform, enhance AI-driven personalized learning, and improve employee engagement and productivity. - learn more
    • Plug, a Santa Monica-based company operating an EV-exclusive wholesale online auction platform, has secured $6.7M in an oversubscribed seed funding round led by Floodgate, Autotech Ventures, and A*. The company has also launched Plug Trade Desk™, the first EV-focused service designed to help dealers confidently price, move, and monetize trade-ins. The newly acquired funds will be used to enhance Plug's technology and expand its services, aiming to support dealers in navigating the growing used EV market. - learn more
    • Gallatin AI, a defense tech startup, has raised $15M in seed funding led by 8VC to scale its AI-powered logistics platform, Navigator. The tool helps military logisticians predict, plan, and execute operations more efficiently in contested environments. Funds will be used to expand the team and deploy the platform across military services. - learn more
    • BLNG AI, a generative AI platform based in Los Angeles and Paris, raised $3M in seed funding led by Speedinvest to streamline jewelry design by turning sketches into photorealistic renderings and animations. The funding will support commercialization, team expansion in Europe and the U.S., and the launch of a subscription-based app for luxury brands and independent jewelers. - learn more
    • Amca, a newly launched aerospace company focused on modernizing the industrial supply chain, has raised $76M in funding from investors including Caffeinated Capital, Founders Fund, Lux Capital, Andreessen Horowitz, and others. The company plans to acquire specialized suppliers and develop new aerospace products, aiming to strengthen and future-proof the sector’s manufacturing and innovation capabilities. - learn more
    • Turbine Finance Corp., a Santa Monica, California-based data science-driven liquidity platform, has raised a total of $21.75M in equity funding, comprising a $13M Series A round co-led by Alpha Edison and TTV Capital, and a previously unannounced $8.75M seed round with participation from Fin Capital, B Capital, and Sozo Ventures. Additionally, the company secured up to a $100M warehouse facility from Silicon Valley Bank to provide credit facilities to venture investors. The combined funding of $121.75M will be used to deploy the warehouse line and expand Turbine's data science team. Turbine's platform enables private equity and venture firms to offer limited partners access to the value of their portfolio investments without reducing exposure, leveraging machine learning to expedite underwriting processes. - learn more
    • Gente Beauty, an innovative Brazilian body care brand, has received a lead investment from Webster Capital, a private equity firm specializing in consumer and healthcare sectors. This partnership aims to support Gente Beauty's growth and expansion in the beauty industry. - learn more
              LA Venture Funds
              • Alexandria Investment Partners participated in a $41M Series A round for Solu Therapeutics, a Boston-based biotech company developing targeted protein degradation therapies. The funding will advance its lead candidate, STX-0712, which recently entered a Phase 1 clinical trial for CMML and other advanced blood cancers. - learn more
              • Calibrate Ventures participated in SigIQ.ai's $9.5M seed funding round. SigIQ.ai, based in Berkeley, California, is an AI tutoring startup focused on providing personalized education through advanced AI models. The funds will be used to hire top talent, enhance their AI models, and scale their platforms to educational systems worldwide. - learn more
              • Rusheen Capital Management participated in Zero Industrial's $10M Series A funding round, aiming to accelerate the development of thermal energy storage solutions in North America. Zero Industrial focuses on deploying large-scale thermal energy storage projects to enhance energy efficiency and support decarbonization efforts. The funding will be used to expand their project pipeline and advance the commercialization of their technology. - learn more

              LA Exits

              • Bread Beauty Supply has been acquired by Cost of Doing Business (CODB), a holding company founded in 2024 by Topicals founder and CEO Olamide Olowe and president Sochi Mbadugha. The acquisition aims to expand Bread's retail presence in the U.S., starting with an increased footprint in Sephora stores. Founder Maeva Heim will continue as Chief Creative Officer, focusing on the brand's creative direction, while CODB will manage strategic operations. This move reflects CODB's commitment to supporting Black-owned businesses and fostering diversity in the beauty industry. - learn more

                            Download the dot.LA App

                            El Segundo Startup Turns Tax Credits into Big Business

                            🔦 Spotlight

                            Hello LA,

                            Step into the world of Incentify, the El Segundo-based innovator turning the headache of managing tax credits and incentives into a walk in the park. Founded in 2019, this trailblazing company is reshaping how businesses approach what was once a daunting bureaucratic challenge.

                            Incentify’s platform is revolutionizing the industry by helping businesses discover and effectively manage a share of the estimated $1.2 trillion in tax credits and incentives that often go unclaimed each year. This critical service not only simplifies the process but also ensures that companies can more easily access and leverage these financial opportunities to fuel their growth and sustainability initiatives.

                            Recently, Incentify reached a new milestone by securing $9.5 million Series A funding led by Innovent Capital Group. This significant investment underscores the market’s confidence in their innovative approach and supports their mission to expand their technological capabilities and market reach.

                            As Incentify gears up for this expansion, their efforts are set to make tax incentives more accessible to a broader spectrum of businesses. This is especially vital in today’s economy, where optimizing financial strategies is crucial for business resilience and growth.

                            Incentify's success story from El Segundo is not just about financial gains but also about empowering companies with the tools to turn complex financial engagements into strategic advantages.

                            Stay tuned for more from LA’s vibrant tech scene. Let’s continue to push the boundaries of what’s possible.

                            Enjoy your weekend, and keep innovating, LA!

                            🤝 Venture Deals

                            LA Companies

                            • TOGETHXR, a pioneering women's sports media and commerce brand co-founded by athletes Alex Morgan, Chloe Kim, Simone Manuel, and Sue Bird, has achieved profitability and significant growth, including tripling its year-over-year revenue and increasing its social media following by 17% year-to-date. The company has secured additional growth capital in a funding round led by Alex Morgan's Trybe Ventures. The funds will be used to expand TOGETHXR's presence in the women's sports marketplace. Additionally, media executive Nancy Dubuc has joined the company as Executive Chair, bringing her extensive experience to support TOGETHXR's mission of elevating women's sports and culture. - learn more
                            • Airvet, a Los Angeles-based pet telehealth platform, has secured $11M in an oversubscribed Series B-2 funding round led by HighlandX. This investment follows a year of significant growth, including a 4x increase in year-over-year revenue and a tripling of its client base. Airvet partners with leading employers across various industries, such as PepsiCo, Adobe, and Lyft, to provide employees with 24/7 access to veterinary care via video or chat. The platform's services include online pharmacy, e-prescriptions, discounted pet insurance, wellness programs, and specialty care, with recent expansions into Spanish and French language support. The funds will be used to further enhance Airvet's platform and expand its reach, aiming to make veterinary care more accessible and affordable for pet families globally. - learn more
                                    LA Venture Funds
                                    • Interlagos co-led a $50M Series A funding round for Aetherflux, a San Carlos, California-based startup developing satellites to collect and transmit solar energy from space to Earth. The funds will be used to expand Aetherflux's engineering team and advance the technology for its planned low Earth orbit demonstration mission in 2026. - learn more
                                    • Bungalow Capital Management co-led a $2M seed funding round for Juno, a Denver-based startup specializing in corporate guest travel management. Juno offers an integrated platform that streamlines booking, logistics, payments, reimbursements, and support for non-employee travelers such as job candidates, contractors, and customers. The funds will be used to accelerate product development and expand partnerships, including a collaboration with ALTOUR as their first travel management company partner. - learn more
                                    • Veridical Ventures co-led a $3.75M seed funding round for Flagship, a Sydney, Australia-based retail technology company specializing in visual merchandising solutions. Flagship's platform creates digital twins of retail stores, enabling data-driven optimization of product placement and store layouts to enhance sales performance. The funds will be used to expand Flagship's presence in the U.S. market and further develop its product offerings. - learn more
                                    • Miroma Ventures participated in a £6.5M Series A funding round for Limitless Travel, a Birmingham, UK-based company specializing in accessible holidays for individuals with disabilities. Founded in 2015 by Angus Drummond, who was diagnosed with muscular dystrophy at 22, Limitless Travel offers curated group holidays with trained carers, ensuring accommodations and excursions meet specific accessibility needs. The investment will enable the company to enhance its technology, expand its range of destinations, and lay the groundwork for international growth, aiming to transform the lives of disabled individuals through travel. - learn more
                                    • B Capital participated in a $20M Series A funding round for Gable, a Seattle-based company specializing in data management solutions. Gable's platform focuses on "shifting left" in data management by enabling software and data developers to collaboratively build and manage high-quality data assets through API-based data contracts. The funds will be used to accelerate product development and expand Gable's team to meet the growing demand for data collaboration tools. - learn more
                                    • Rebel Fund participated in a $3.8M funding round for Sohar Health, a health technology company. Sohar Health is developing an AI-powered platform designed to streamline patient intake and triage, aiming to enhance access to healthcare services. The funds will be used to accelerate product development and expand the company's reach within the healthcare industry. - learn more

                                        LA Exits

                                        • Tixologi, a next-generation ticketing platform, has been acquired by Punchup Live, a New York-based comedy platform. This strategic move integrates Tixologi's advanced ticketing technology into Punchup Live's ecosystem, enabling seamless, direct-to-fan ticket sales for comedians and venues. The acquisition aims to enhance the ticket purchasing experience by providing features such as fast checkout, unified outreach tools, and advanced anti-scalping solutions, thereby empowering comedians to connect more effectively with their audiences. - learn more
                                        • InVisit, a Calabasas, California-based provider of cloud-based visitor management solutions, has been acquired by Motorola Solutions. InVisit's platform streamlines visitor registration, access, and host notifications across sectors such as commercial offices, education, and healthcare, enhancing security through features like blocklist screening and real-time guest activity insights. This acquisition aims to integrate InVisit's capabilities into Motorola Solutions' Avigilon Alta security suite, offering enterprise customers a unified, cloud-native approach to managing security threats and improving operational efficiency. - learn more

                                                    Download the dot.LA App

                                                    $207M Later, Napster is Back and Ready for the Metaverse

                                                    🔦 Spotlight

                                                    Happy Friday, Los Angeles!

                                                    This week, we’re rewinding the clock and fast-forwarding into the future at the same time. Napster, yes, that Napster, just got acquired for $207 million byInfinite Reality, a metaverse and immersive tech company that’s aiming to bring the iconic music platform into the next generation.

                                                    For anyone who came of age in the early 2000s, Napster was either your musical awakening or the reason your dial-up connection crashed. Launched in 1999 by Shawn Fanning and Sean Parker, it was the face of peer-to-peer file sharing and a lightning rod in the music industry’s first wave of digital disruption. After its legal battles and shutdown in 2001, Napster bounced between owners like Roxio and Best Buy, before eventually merging with Rhapsody and evolving into a legitimate streaming service.

                                                    Now, Infinite Reality is giving Napster a fresh remix. The company says it plans to turn Napster into a social-first music platform that emphasizes artist-fan interaction over passive listening. We’re talking virtual 3D concert experiences, listening parties, fan communities, and merch drops… essentially, a metaverse-native platform built for music superfans.

                                                    According to Infinite Reality CEO John Acunto, this aligns with the company’s bigger vision: moving the internet away from “a flat 2D clickable web” into “a 3D conversational one.” They’re betting that a brand like Napster, which already carries cultural weight, can thrive in a world where fans want deeper connections and creators want modern monetization tools.

                                                    It’s a bold move, but maybe a smart one. Nostalgia is a powerful asset, and in an era where legacy brands keep getting digital reboots, Napster has a chance to go from early disruptor to comeback story.

                                                    Will today’s listeners hit play? We’ll see. But as far as tech comebacks go, we’re here for this remix.

                                                    🤝 Venture Deals

                                                    LA Companies

                                                    • Topanga, a Los Angeles-based company specializing in AI-driven waste reduction solutions for commercial kitchens, has raised an $8M Series A funding round led by Blue Bear Capital, with participation from Struck Capital, Amasia, and Wonder Ventures. This investment brings Topanga's total funding to $12.2M. The company plans to use the proceeds to expand its food waste tracking platform into the senior living, health care, and hospitality sectors, accelerate the growth of its ReusePass system beyond universities into enterprise food service, and enhance integration with major food-service platforms like Grubhub and Jamix. - learn more
                                                    • Flight Science, an aviation tech startup focused on AI-powered flight optimization, raised $1.5M in pre-seed funding led by Outsiders Fund. The company helps airlines reduce fuel costs, emissions, and turbulence impact, and will use the funds to grow its team and expand product rollout by summer 2025. - learn more
                                                          LA Venture Funds
                                                            • Second Sight Ventures participated in a $14.2M Series A1 funding round for Lucky Energy, an Austin, Texas-based energy drink company. Lucky Energy offers a line of zero-sugar, zero-calorie beverages in six flavors, formulated with ingredients like maca and beta-alanine. The company plans to use the funds to accelerate distribution, introduce new products, support strategic partnerships, and recruit in key business areas. - learn more
                                                            • M13 led a $5.5M funding round for Chord Commerce, with participation from Act One Ventures and others. The New York-based company provides an AI-powered customer data platform (CDP) that helps commerce brands unify customer data, generate real-time insights, and automate marketing decisions. The funding will be used to further develop the platform and support brands in scaling their data-driven marketing efforts. - learn more
                                                            • Upfront Ventures led a $4M Seed funding round for Arlo Health, a New York City-based AI-powered health insurance underwriter focused on small and mid-sized businesses. Arlo offers level-funded health plans designed to improve preventive care and cost transparency through value-based care and AI-driven underwriting. The funds will be used to expand its broker network, grow its engineering and sales teams, and scale operations. - learn more
                                                            • Bonfire Ventures co-led a $5M Seed funding round for VoiceOps, with participation from Village Global and others. Based in New York City, VoiceOps uses generative AI to analyze phone calls and surface insights that boost sales performance, ensure compliance, and optimize marketing. The funding will support product development, team expansion, and broader market adoption. - learn more
                                                            • MANTIS Venture Capital participated in a $17.2M Seed funding round for EDGE Markets, a fintech company building banking tools tailored to the gaming industry. EDGE’s flagship product, EDGE Boost, offers a debit card and bank account specifically designed for betting, with features like spending limits, financial transparency, and cash-back rewards. The funds will be used to further develop the platform and expand its presence within the gaming market. - learn more

                                                                LA Exits

                                                                • SmartDepo, a leading provider of AI-powered deposition summaries for the legal industry, has been acquired by Rev, a prominent speech-to-text technology company. Founded in 2023 by civil rights attorney Isaac Manoff, SmartDepo delivers comprehensive deposition summaries featuring 100% accurate page-line citations, hyperlinked tables of contents, key admissions analyses, and deposition memos highlighting essential themes. This strategic acquisition combines Rev's highly accurate transcription services with SmartDepo's advanced summarization capabilities, aiming to enhance productivity for attorneys and court reporters by reducing manual review time and improving client outcomes. - learn more
                                                                • Stem, a platform offering personalized distribution and digital strategy services for independent artists and labels, has been acquired by Concord, a leading independent music company. Stem will operate as a separate division within Concord Label Group, with CEO Milana Lewis and President Kristin Graziani continuing in their roles. This acquisition provides Stem with the capital and resources to invest in new technology, expand its suite of label services, and accelerate global growth, while maintaining its mission to empower independent artists with autonomy and support. - learn more

                                                                            Download the dot.LA App

                                                                            RELATEDEDITOR'S PICKS
                                                                            Trending