Melodie hits high (convertible) note with $1 million raise

Music licensing startup Melodie has orchestrated a $1 million investment in a convertible note from Future Now Capital.

For those unfamiliar, a convertible note is an agreement between an investor and a company where the loaned funds can be converted to equity. Rather than being repaid in principle or interest, the investor receives shares in the company.

Generally, conditions are set out in the agreement as to when the conversion will take place. For example, at the conclusion of a future financing round, hitting certain performance targets, or when an IPO occurs.

According to the company, this bridge funding will support Melodie’s European expansion, establishing an office in France. It also has plans for a larger equity raise in 2025.

Founded in 2017, Melodie offers an online platform where companies and content creators can find and license music for various projects.

Over the past three years, the company has reported annual revenue growth between 96% and 229%. This has been driven by broadcast royalty income and recurring revenue from creators, brands, broadcasters, production companies, and API users such as GoDaddy Studio.

The recent $1 million investment brings Melodie’s funding to just under $3 million to date. Previous investors include Nick Menere, an early Atlassian employee and founder of Code Barrel (which Atlassian acquired in 2019), and Peter Strain, co-owner of The Drop Festival.

“As we mark our sixth year of operation, we are building closer relationships with our partners, and broadening our global presence. Three of the world’s four largest royalty markets are France, the UK and Germany,” Melodie founder, Evan Buist, said.

“With more than 20 million minutes of our music now broadcast on FTA and VOD platforms in Australia alone, we are looking to replicate that success in key European markets, leveraging data to create long-term, powerful strategic alliances.”

Buist was recently awarded “Highly Commended Entrepreneur of the Year” by The CEO Magazine, with Melodie being “Product of the Year” in the Audio Production, Processing, and Networking category at the NAB Show in Las Vegas.

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