LÜM, a Madison-based tech startup that’s revolutionizing the way artists and fans stream and discover new music, has closed a Seed II round of funding.
LÜM will continue its innovative launch of the first virtual gifting system implemented to help the development and profitability of independent artists in the music streaming industry.
Over the past year, the music streaming and discovery application built on a stand-alone social network has enabled emerging artists to circulate their music to larger audiences, grow their fan base, and make money.
The Company’s Seed II financing comes alongside the rapid growth of the LÜM platform’s first-ever direct-to-artist financial support system with the launch of virtual gifting to the app in January. With this successful round of funding, the Company looks to continue developing innovative methods that empower independent artists. In just over a year, the LÜM platform has grown to over 100,000 users and over 200,000 tracks uploaded to the app, making LÜM one of the largest user-uploaded music streaming services in the US. Alongside additional investors, the Wisconsin Alumni Research Foundation (WARF) participated in this funding round.
LÜM is thrilled to announce its partnership with multi-GRAMMY Award winner NE-YO and Compound Entertainment co-founders, music executives; Tishawn Gayle and Rynell “Tango” Hay. In addition to his Global Ambassador title, NE-YO will be launching the first ever remix competition for his new single U 2 Luv featuring Jeremih. The winners will be hand selected by NE-YO and collectively receive up to one million Notes (LÜM’s in-app currency). A first ever contest of its kind for the app.
“The digital music landscape is changing, and LÜM is excited to be leading that change for how artists and fans consume, share, and support music,” said Max Fergus, CEO and co-founder of LÜM. “Our partnership with NE-YO reinforces LÜM’s mission to create a new platform, outside of traditional streaming models, that provides all of the tools artists need to grow their careers and be successful promotionally, artistically, and financially.”
“I am honored to join the LÜM team as we embark on making fundamental changes to the music streaming industry that will allow us to give back to the music creators and will significantly impact the digital distribution of music,” said NE-YO.
Tishawn Gayle, co-founder of Compound Entertainment, states, “Every so often a product hits the marketplace that’s truly disruptive. I wholeheartedly believe LÜM is that product. This social music discovery platform truly puts music discovery back in the hands of the cool kids while continuing to support the artists and creators monetarily through virtual gifting.”
Within six months of the launch of LÜM’s virtual currency, over 13,000 artists have received direct support from fans. Over 21,000,000 Notes have been gifted to artists. Each Note has direct financial value equal to the average royalty payout per stream on alternative streaming platforms. In the future, LÜM looks to apply its virtual currency to new areas of the music industry and continue to pursue the company’s ultimate goal of creating a path for independent artists to make a career out of their passion for music.
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