NFT music platform FanTiger raised $5.5 million in a seed funding round on May 25.
The the round was led by Multicoin Capital and included participation from Krafton, Pravega Ventures, GAMA, Woodstock Fund, IOSG Ventures and Polygon Studios.
It also saw participation from individual investors, including Polygon co-founder Sandeep Nailwal, a Coinbase board member. Gokul Rajaram, Prashant Malik, Founder of Tykhe Block Ventures, and the chief architect of CRED, Miten Sampat.
In a press release, the company said the funding would be used to develop blockchain technology to further its goals of empowering independent artists and building fan communities.
At the heart of this plan are non-fungible tokens (NFTs). But how do NFTs fit into what the firm calls Music 3.0?
NFTs drive musical innovation
The music industry is a tough business to break into. Artists face multiple seemingly insurmountable challenges, primarily due to the power imbalance in favor of record labels.
But FanTiger hopes to shake things up by enabling direct artist support through NFTs. Fans can also benefit financially through the Rewards Pool system.
Artists sell NFTs of their music through the platform and control how the proceeds from the sale are used, such as for production, filming videos, etc.
A certain percentage of royalties from a particular NFT can be committed to a vaulted reward pool. At the end of a set period, NFT holders of that song are paid from the reward pool. The more popular the song, the more it is paid out to holders.
These NFTs will be tradable on the secondary market once FanTiger builds its NFT market.
Meanwhile, fans can connect with the artist through community access, rewards, and what FanTiger calls “exclusive cashless privileges.” These privileges include behind-the-scenes content, meet-and-greet opportunities, access to unreleased music, and backstage access to concerts.
FanTiger Early Access Program Now Open
CEO and co-founder of FanTiger Prashan Agarwal said the music industry should favor artists over record companies. He added that blockchain technology and music NFTs would disrupt the traditional structure of the music industry.
According to Agarwal:
“FanTiger is at the forefront of this revolution to show the world how NFTs can reshape the music industry. FanTiger helps create Artist-Fan relationships as has never existed before, it will usher in a new era for music.
Agarwal has bold ambitions to onboard 10 million users and 100,000 artists on the FanTiger platform.
Ahead of the company’s official launch, an early access program is available for those who want to get in early. The first 5,000 members will receive a free NFT and benefits such as priority access to the most requested music NFTs, concert tickets and limited edition merchandise.