Fintech-focused venture capital firm QED Investors led the funding and was joined by Block, the payments tech company formerly known as Square. Block paid nearly USD 300 million in 2021 to acquire a majority stake in TIDAL, the music streaming service backed by rapper Jay-Z.
Existing investors Slow Ventures and Quality Control also pitched in on Stem’s new round, which takes the startup’s total funding to around USD 40 million.
Since launching in 2015, Stem has merged financial management tools with music distribution capabilities, working with independent record labels like Big Loud as well as major artists like Wiz Khalifa. Its dashboard includes tools for artists, managers, and labels to oversee their revenues, split funds with collaborators, and receive automated payments. While only Stem-distributed artists can currently access its financial tools, the new funds will go toward expanding the platform’s existing royalty accounting features to other music distributors.
With avenues for music monetization constantly expanding, Stem aims to provide artists with a ‘financial backbone’ allowing them to plan their projects and income.
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