Musiio Secures $ 10 Million Valuation Funding As He Signs Hipgnosis, Expands Product Portfolio
Fast-growing AI company Musiio has made a new round of investments, signed Hipgnosis as its latest client, and unveiled a new ‘Custom Filters’ feature, which it says provides a much more catalog search function. personalized and efficient.
The size of the funding round is not disclosed, but gave Musiio a valuation of $ 10 million. This is an increase from $ 3.5 million in 2019.
The latest cycle included investments from Premiumbeat founder François Arbor as well as Tileyard Group owner Paul Kempe.
Musiio co-founder Hazel Savage told MBW that the new funding, while obviously useful, was not actually operationally needed by her company, but it demonstrates Musiio’s increased position among strategic investors from various sectors.
The Hipgnosis agreement, on the other hand, is presented as a “signature of declaration”. Savage said, “When I started Musiio, I knew research would be our most powerful product. More music is being created than ever before, and the value of music as an asset is greatly enhanced by companies like Hipgnosis.
“But you have to be able to organize and research this asset to maximize its potential, and that’s what we’re doing here at Musiio; we create extremely large and searchable music catalogs. Think of it like Google reverse image search, but for audio.
Tom Stingemore, EVP Sync & Creative at Hipgnosis, added: “Not only does Musiio’s AI answer a long-standing question, it’s ready to go – and it works. Basically, the Musiio team worked with us to customize their platform to our exact requirements.
“This bespoke tool now allows us to instantly filter our 60,000 songs to meet the needs of music supervisors, directors, ad agencies, producers and broadcasters – with the push of a button.”
MBW spoke with Savage to get more details on the new funding, Musiio’s latest backers, the Hipgnosis deal and the Hit Potential algorithm his company is working with Vans in Asia…
Musiio is still a relatively young company. can you give us an idea of how much growth you have experienced in such a short period of time?
We are only three and a half years old, but we have signed 55 company agreements, our turnover from 2019 to 2020 has increased by more than 600% and we are on the way to doubling our turnover again. in 2021 (compared to 2020).
But I’m especially excited about our new $ 10 million valuation; it really shows that investors have confidence in us and that the market recognizes our growth compared to a $ 3.5 million valuation company in 2019.
In addition, the last two months have been profitable, and it is always exciting!
Where does the new funding cycle fit into this model? What prompted you to get started and what will it be used for?
Oddly enough, I didn’t really need the money when I raised this round. My goal was to prove that there were strategic investors who believed in what we built.
François Arbor, the guy who sold Premiumbeat to Shutterstock for $ 47.5 million, is an investor and the other is Paul Kempe, the man behind [UK music studio/business campus/property group] Floor tile. These guys know music technology and they value us a lot, this is the new face of Musiio for 2021.
You just signed the still busy Hipgnosis as a client. What is the nature of this deal, and can you tell us a little bit about the value of Musiio’s “search” function for a company like this?
I am very happy to announce Hipgnosis as a client, they have been one of the big drivers of music in recent years, so the fact that they use Musiio Search technology on a daily basis is a huge check in our favor.
The great thing about Hipgnosis is that they’ve acquired all of these amazing songs, but the challenge is that these songs together make up a unique combination of songs, never seen before (a unique catalog, if you will). Using AI-assisted search allows them to navigate their own catalog as if they’ve managed those songs their entire lives – efficiently, quickly, and with clarity.
“If you represent a huge catalog, but you have different geographic rules or different ownership percentages for certain tracks, all of that can be programmed into Musiio and made searchable with all of our other features. As far as I know, we are the only AI research company with this capability. “
Not only does Musiio have super precise and super-fast search across thousands of tracks, but we’re also happy to add the client’s own data in a new feature that we call “Custom Filters”, and that’s what has. really impressed Tom. [Stingemore, Head of Sync at Hipgnosis]. He told me that he had heard of this technology in theory, but to see it work and then to see our team go out of their way to make it work the way they want … they were very happy, I am happy to to say it.
It actually took my amazing co-founder, Aron Pettersson, six months to create custom filters, but the crazy thing is how deceptively simple it is. If you represent a huge catalog, but have different geographic rules or different ownership percentages for certain tracks, this can all be programmed into Musiio and made searchable with all of our other features. As far as I know, we are the only AI research company with this capability.
Who else can you count as clients at this point?
In addition to Hipgnosis, we also have Epidemic Sound, Jamendo and Vans. I wish I could name more, but 70% of my clients are completely confidential; you might be surprised to know who is powered by Musiio.
The last time we spoke, YOU JUST LAUNCHED THE HIT POTENTIAL ALGORITHM. How has it been over the past six months?
Hit Potential continues to be a very new and exciting product, but I think it scares the industry a bit, so we’re going slowly and steadily with it. One thing I can tell you is that the current Vans Musician Wanted campaign in Asia is supported by Musiio Tech, including Hit Potential. Vans Asia has really embraced AI for A&R.
What are your next goals, whether in terms of expanding the portfolio or expanding your footprint in global trade?
I am always looking to close more deals. Funny, I never did any sales before I became a founder, but it’s actually pretty addicting once you get down to it. I like to showcase our product and close deals that save my customers money or earn them money. What a buzz!Music trade around the world