Distribution and royalty-processing firm Stem has been offering advances to independent artists since 2020. Now it has a considerably larger pool of money to draw on for those payouts, courtesy of investment firm Victory Park Capital.
VPC is providing a $250m credit facility for Stem to use for advances – not just for artists’ new music, but now also against their existing albums and songs.
Stem CEO Milana Lewis said that the partnership will solve two problems that her company has identified among its artist clients.
“The first gap is access to capital for those who are not quite yet ready to sell their catalogue but want to leverage it for cash,” she said as the deal was announced.
“The second is investment in future music for those who are exiting the major label system, have their catalog currently committed, but have the opportunity to become independent for future releases.”
Stem has raised its own funding rounds in recent years, with a $20m round in April 2022 from backers including Tidal’s parent company Block, and before that a $10m round in August 2020 from investors including a number of music managers and label executives.
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