Los Angeles-based distribution and services company Stem has secured $10 million in new financing. The new round of financing brings Stem’s total funds raised since it’s 2015 founding to $22 million.
Stem claims to have distributed over $100m in royalty payments since its founding.
In June 2019, the company revealed that it would be pivoting away from elements of its original business model by turning off the ability for any DIY artist to distribute their music through its platform. Stem subsequently cut ties with tens of thousands of DIY artists whose music it previously distributed, migrating them over to its former rival in the space, TuneCore.
To that aim, Stem’s new areas of emphasis include: ‘Stem Direct’ which is a platform exclusively for its top-performing acts (and future signings), as a VIP offering which the firm described as “a concierge member service to support our top talent” and Scale, which is a venture capital platform that enables the company to deploy over $100m of advances to both its independent artist and record label clients.
Artists that have used Stem’s services include the likes of Zac Brown Band, Foster the People, Jeezy, and Desiigner, New Kids on the Block, independent record label Big Loud Records, Freebandz, Future’s record label; and emerging artists Brent Faiyaz, Justine Skye, bbno$, LP, Toro y Moi, and Poolside.