Sound.xyz, a web3-focused music startup, has raised a $5 million seed round led by a16z to change the way artists can make a living off their music “with true fans.”
The startup said in a blog announcement that other investors, including 21 Savage and DJ Drama also participated in the funding. The startup claims the economic model for streaming isn’t just broken, it is “failing to unlock the full value of music and facilitate listeners’ desire to directly support artists and discover music as a community.”
With the proceeds, Sound.xyz plans to develop a new crowdfunding feature that allows artists to raise funds from their fans for upcoming projects.
The project also wants to develop a model that allows music curators “to add value and monetize their ability to discover emerging artists.”
Sound.xyz is a social platform for artists where all the content is stored on the Ethereum blockchain with the help of the decentralized storage provider IPFS.
Music creators can sell a limited supply of non-fungible tokens (NFTs) so that followers can buy these tokens and leave a comment at a certain moment in a certain song.