Demuzo Secures $600K in Pre-Seed Funding to Launch its Music Investment Platform with Emerging Artists
Demuzo, an Indonesia-based music tech startup, today announced it has raised $600K in pre-seed funding and launched its music investment platform.
For many emerging artists, achieving financial stability is a challenge. Expenses related to recording, production, and promotion often exceed their earnings, creating a fragile financial situation that hinders career advancement.
According to a recent study, 76% of new artists say that a music career is financially unsustainable.
Demuzo aims to support emerging musicians and foster deep connections between fans, artists, and labels by creating innovative music rights investment opportunities. The platform allows fans to invest directly in their favorite musicians in exchange for a share of their music royalty rights.
The funds raised are channeled to labels to promote these musicians. This approach enables fans to profit from future royalties, helps artists secure funds for music promotion, and allows labels to create new global talents without their own financial investment.
The platform has officially launched following several months of closed beta testing. During this period, more than 10,000 users joined the waitlist, with a conversion rate of 18% to full registration and approximately 5% making purchases. The cost of attracting an artist to the platform is estimated at $6–8, and currently, 150 artists are in the waiting list, undergoing the selection process by Demuzo’s team.
Demuzo is debuting with a collaboration with Los Angeles-based music label ISINA Records, which works with award-winning producers such as Walter Afanasieff, Robin Thicke, Paul Oakenfold, and Davix Foreman.
The launch features a lineup of rising artists, including:
- Starrz x Whitney From Houston
- Cooper Phillip
- Shannon Jae Prior x Shelton Taylor
- Pogorelski
- Axure
- JNKS
- Knock’em
- Yvng Nelly
- Youngworldibi
Each artist has a fundraising goal typically between $30,000 and $50,000, set by the label to fund music promotion, spanning distribution to marketing efforts.
Operating in a competitive landscape alongside music investment platforms such as Corite, Royal.io, Royalty Exchange, and Sonomo, Demuzo stands out as the first platform that not only connects artists and fans but also integrates the expertise of leading music labels to help emerging artists promote their work. This model ensures that all stakeholders benefit from the journey towards creating new global music stars.
The company has closed a pre-seed funding round of $600K from angel investors in the finance industry. These funds have been allocated towards platform development ($250K) and legal, administrative, and marketing expenses ($250K). Demuzo is now seeking an additional $1M+ in funding to expand partnerships with labels and artists and accelerate product development, including building a mobile app.
Demuzo was co-founded in 2022 by Mark Feldman, Ramil Kharisov, Timur Zhumagaziev, and Paul Pogorelsky, each bringing over a decade of experience in the fintech and investment sectors. Mark Feldman, CEO and Co-Founder of Demuzo, has deep roots in the music industry, having co-founded a music label in the 1980s and promoted several artists, including the chart-topping hit “Groove Is in the Heart” by Deee-Lite.
“Creating Demuzo was a natural extension of our passion for music and our expertise in finance. We have seen firsthand how talented musicians struggle with financial barriers that prevent them from achieving their full potential. We developed this platform to support emerging artists and ignite new music sensations by uniting all industry stakeholders — artists, fans, labels, and producers — for mutually beneficial collaboration,” said Mark Feldman, CEO and Co-Founder of Demuzo.
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