Royalty-free music startup Soundstripe has closed a $4 million Series A financing round led by Atlanta-based Vocap Investment Partners. The investment will allow Soundstripe to continue scaling in the production music space and expand its product offerings.
“Vocap is a great fit for Soundstripe because of the extensive operational experience they possess, as former founders and CEOs,” Travis Terrell, co-founder and co-CEO, tells Hypepotamus. “They walk the walk when it comes to providing value to their portfolio companies, helping companies like ours get to the next level.”
Soundstripe can be compared to a stock photography website, providing unlimited access to high-quality, royalty-free production music. The platform provides songs and curated playlists for anything from wedding videos to films, allowing content creators to avoid complicated contracts or potential legal liabilities.
Users access the entire library for an affordable monthly subscription fee.
The startup’s customers range from freelance creators to marketing agencies and Fortune 500 companies who use it to create advertising and marketing products. In the three years since its launch, Soundstripe says they have seen triple digit year-over-year growth and facilitated over two million “micro-licenses” across 130 companies.
The funding will also go toward expanding its original content offerings, which are produced by the company’s own label division, Soundstripe Productions.
“The production label was born out of necessity. We wanted to create a label that was fair to artists because we’re artists ourselves,” Terrell told Hypepotamus in a 2018 interview. “We’re creating music for Soundstripe, but also now distributing it to streaming services like Spotify. We wanted to help artists create better music and pay them more for doing it.”
Terrell also says they will be investing in team growth and office space in their hometown of Nashville.
Prior to this Series A, Soundstripe had raised just half a million dollars in seed funding from individual investors.
“It is amazing what the Soundstripe team has accomplished with only $500k of funding prior to our investment,” said Vinny Olmstead, Managing Director of Vocap Investment Partners, in a statement. “In just three years, they have disrupted an expanding market by creating a simplified and elegant solution.”
This article has been updated with initial comments from CEO Travis Terrell.
