SongVest

SongVest is the first SEC Reg A+ Qualified platform that allows fans and investors to invest in hit songs!

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Security Type
Crowd SAFE
Categories
Entertainment
Location
Raleigh
Expected Close Date
August 02, 2023
Target Raise
$50.00K-$5.00M
Website
songvest.com
Number of Employees
0
Cash
$239,624
Revenue
$204,092
Short Term Debt
$288,151
Cost of Goods
$703,425
Long Term Debt
$0
Net Income
$-503,716

Company Description

Invest in SongVest

SongVest is the first SEC Reg A+ Qualified platform that allows fans and investors to invest in hit songs

✓ Share in income streams (royalties) from hit songs, which previously included songs recorded by Beyonce, Cardi B, DMX and more.

✓ Early Bird Bonus: First $750k will invest in a SAFE with a $15M pre money valuation cap. Beyond $750k is $20M pre money valuation cap.

✓ Consistent and strong sales pipeline of deals that will continue to accelerate growth.

✓ Doubled 2021 revenue in the first six months of 2022.

✓ $4.2M in catalog sales representing an estimated $700k in annual music royalties paid.

✓ Seasoned management team who created the first Music Royalty marketplace and the first Reg A+ SEC Qualified music royalty shares.

The Problem

  1. Music royalties are one of the best alternative asset classes but they have been locked in an antiquated payment model with only industry insiders being able to take advantage of the opportunity.
  2. There has been no easy way for the average investor to buy music royalties.
  3. Catalogs have traditionally been sold to one buyer because of securities limitations.
  4. Artists are looking for new opportunities to connect with invested fans that will allow them to work together on promoting music and sharing in the financial rewards.
  5. Fans who consume music and drive the business are not rewarded or incentivized to engage with artists for the long term.

The Opportunity

✓  The proliferation of the creator economy and music rights acquisition creates the opportunity for creators and fans to partner directly to drive efficient, engaged, and economic success for both.

✓  SongVest is the first Reg A+ securitized marketplacewhere anyone can buy and sell shares of music royalties.

✓  We are already transacting with over $3.6M in catalog sales that represent an estimated $600k in annual music royalties paid.

✓  We can directly engage and reward fans loyalty by allowing them to share in potential revenue from their favorite artist’s songs.

Revenue Model

SongShare revenue 
We charge a service fee of 16% of the reserve price we negotiate with the seller. This covers our marketing platform (website, social media, overall digital marketing strategy) to continuously engage fans to help drive more sales and streams. 

Service Revenue
We retain less than 10% of the royalties paid out to investors on an ongoing basis to cover administrative expenses. 

Merchandise Revenue
We have not forecasted merch revenue, but we anticipate that people will want a physical representation of their purchases such as SongShare gold record coins and other items.

Revenue Projections
$3.6M in total catalog sales representing an estimated $600k in annual music royalties paid, including non-SEC qualified catalog sales.  Current 12-month projection represents $2M in revenue.

How's it going so far? 2021 vs 2022.

  • Doubled 2021 revenue in just six months.
  • Current sales pipeline projected to exceed $1M by year end.

Why Invest in SongVest? 

What if you could have been one of the early investors in NASDAQ or TD Ameritrade? SongVest has the opportunity to create a new stock market based on music royalties that lets the fans and artists invest in each other to share in a music economy that is expected to grow 9% YoY over the next decade.

✓ The opportunity to be part of the new music economy.

✓ Executive team has the most experience in royalty investment marketplaces to make this a success.

✓ First mover status with strong pipeline to ensure dominance in the marketplace.

✓ Investors are just now waking up to the fact that music royalties are one of the best alternative asset classes.

✓ Access to exclusive VIP investor experiences.

Perks

Early Bird Bonus:
• First $750k will invest in a SAFE with a $15M pre money valuation cap. Beyond $750k is $20M pre money valuation cap.

$5k Investors:
• One-on-one zoom with SongVest founder Sean Peace and one of our creators.

$10k Investors:
• Dinner with SongVest founder Sean Peace at one of Raleigh, North Carolina’s Top restaurants.

Key Deal Facts

✓ Share in income streams (royalties) from hit songs, which previously included songs recorded by Beyonce, Cardi B, DMX and more.
✓ Early Bird Bonus: First $750k will invest in a SAFE with a $15M pre money valuation cap. Beyond $750k is $20M pre money valuation cap.
✓ Consistent and strong sales pipeline of deals that will continue to accelerate growth.
✓ Doubled 2021 revenue in the first six months of 2022.
✓ $4.2M in catalog sales representing an estimated $700k in annual music royalties paid.
✓ Seasoned management team who created the first Music Royalty marketplace and the first Reg A+ SEC Qualified music royalty shares.

Management Team / Advisory Board Bios

Sean Peace:
-Sean created the original SongVest in 2007 to sell royalties as memorabilia. That let to the creation of Royalty Exchange, the first online market to buy and sell music royalties at auction. Selling Royalty Exchange in 2015, he has been working on seeing his vision completed to create the first stock market where fans can invest in their favorite artist.

Paige Reese:
-Paige Reese has 15+ years experience working in music and entertainment. She was Director of Marketing for one of the nation's busiest arenas and Head of Operations for an Inc. 5000 start-up entertainment marketing agency before opening her own business to provide music licensing and clearance services. Reese is responsible for SongVest's operations & marketing.

Zac Anderson:
-Former Controller at Royalty Exchange. Zac has extensive experience with royalty analysis and was instrumental in the development of the investor portal and payment system.

Jesse Atwell:
-Jesse Atwell is an entertainment marketing executive with 15+ years experience launching and managing national, high-profile campaigns for major brands like Sony Music and Hallmark Cards. Atwell has worked multiple RIAA-certified Gold and Platinum selling records for top-selling artists within both the indie and major label systems.

Ben Stauffer:
-Previously a member of the executive leadership team of an independent music company in the Nashville area, Ben Stauffer has two decades of business experience with a variety of companies, including a record label and music publishing company, a music business management firm, an S&P 500 company, and Big 4 public accounting firms. He also created "Sounds Good To Me," a music discovery podcast which he produces and hosts.

Justin Proulx:
-Justin Proulx is a music executive with years of experience in management and music royalty or catalog financing. In addition to running his own music management company, Proulx was a Royalty Specialist for a large music finance firm. Now at SongVest, Proulx has specialized in building relationships in the hip-hop industry and creating custom finance solutions for artists and songwriters.
Amount Raised : $169,186
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Security Description

An equity crowdfunding specific version of a SAFE used by crowdfunding portal Republic. Upon conversion (if and when that happens), investors may receive special shares with limited rights that do not show up on a company’s cap table. The issuer may roll over and not convert shares at the next financing round causing investors to lose out on some upside.

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