The advent of the iTunes store led to a monumental shift in how we consumed music and since then, the emergence of streaming services has further changed the music industry. The advent of technology and social platforms has also allowed fans and artists to connect in ways previously unimaginable. Stationhead is a social music platform that allows artists and fans to connect, stream, and listen live together. Embracing the creator economy, users are able to launch their own music stations where they can build community, interact with fellow fans, and even set up listening parties with artists. Artists are able to leverage Stationhead as an additional distribution channel for new releases and launches as well as communicate directly with their fan bases. The radio-station-as-a-service platform is integrated with Apple Music and Spotify allowing users access to both libraries and boasts 5M+ users that have created 30K distinct channels. The company, which launched out of beta last year, is working with renowned artists like Nicki Minaj, Bruno Mars, Camila Cabello, BTS, Imagine Dragons, & Cardi B, et al.
AlleyWatch caught up with Stationhead CEO and Cofounder Ryan Star to learn more about the inspiration for the business, the company’s strategic plans, latest round of funding, which brings the total funding raised to $25M, and much, much more…
Who were your investors and how much did you raise?
Stationhead closed a $12M Series A financing round led by Buttonwood Group Advisors (“BGA”). Additional industry-leading investors include global DJ, songwriter, and music producer, Thomas Wesley Pentz Jr., popularly known as Diplo, Red Light Management, TMWRK, Round Hill Publishing, Avex Entertainment, Craig Kallman and Julie Greenwald of Atlantic Records, Kevin Liles of 300 Entertainment, and Jason Flom of Lava Records.
Tell us about the product or service that Stationhead offers.
Stationhead is a social music platform for artists and fans around the world to connect, listen live, and stream together. Stationhead allows its users to create global stations in seconds where they can stream music, talk live, and connect with their community around the world. Stationhead has evolved music streaming to create an interactive and communal listening experience for its 5M users with 30k stations across 200 countries. Music lovers turned station hosts can play their favorite albums and choose from more than 70 million songs without copyright restriction due to an integration with Apple Music and Spotify, all while driving value for the industry.
What inspired the start of Stationhead?
When I was in high school, the world-famous Z100 New York radio station and iconic rock band Bon Jovi discovered my band at the time, Stage, which was later signed by Madonna’s Maverick Records. Years later, I was told by radio program directors, “We don’t break the hits, we play the hits.” At that moment, I realized the traditional model of music discovery needed to be reinvented for modern-day listeners. I had an idea to create a digital platform where music lovers, both fans and artists, could take back their autonomy, listen live, and stream together.
How is Stationhead different?
Stationhead’s patented technology enables fans and artists to create unforgettable digital music experiences, all while driving songs up the charts. Stationhead connects fans and artists in an unprecedented manner with singular live streams exceeding 600k people and all users averaging over 2 hours per day on the platform. Users can also seamlessly integrate music and chatting with Stationhead’s functionality to take live calls or co-host shows with other members. Artists who have officially launched stations resulting in global listening parties that drive Billboard charts include BTS, Imagine Dragons, Coldplay, Shawn Mendes, Cardi B, Nicki Minaj, Camila Cabello, Olivia Rodrigo, Machine Gun Kelly, Bruno Mars, Brandi Carlisle, and many more.
What market does Stationhead target and how big is it?
Stationhead targets creators and fans alike. With over 5M global users and 30K stations across 200 countries, Stationhead is now an integral part of the largest music releases in the world. The music streaming market has been projected to exceed 2B people.
What’s your business model?
We are currently focused on user experience and platform scale. Stationhead will be releasing monetization tools shortly. In the long term, we plan to reflect a youtube-like business model.
What are your post-COVID office plans?
We are a remote-first company. Overall, this has increased our efficiency and our access to talent. Occasionally we rent conference rooms or hot desks for longer strategic meetings but we currently don’t have any plans to get a full-time office.
What was the funding process like?
Fortunately for us, once we started the funding process, momentum in the business really took off to the point where we had to update our deck every few days. This enabled us to identify a lead and move to close quickly.
What are the biggest challenges that you faced while raising capital?
We had not raised capital from a traditional VC firm in the past which made high volume warm intros to relevant firms challenging at first. VC funds like to see people they know in companies at that stage.
What factors about your business led your investors to write the check?
Product, team, data, brand, strategy, and a unique value proposition led to the success of our funding round.
What are the milestones you plan to achieve in the next six months?
We have some very exciting new features in development that will have a big impact on music and further enhance the user experience, being released in the next few months.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Don’t be paralyzed by well-funded competitors. We had zero marketing budget but our insights, product, and grit led us to significantly outperform competitors with over $100M budgets. Also, develop a repeatable process (for both fundraising and operating) so that you can generate and apply quick learnings to avoid chasing the wrong avenue for too long.
Don’t be paralyzed by well-funded competitors. We had zero marketing budget but our insights, product, and grit led us to significantly outperform competitors with over $100M budgets. Also, develop a repeatable process (for both fundraising and operating) so that you can generate and apply quick learnings to avoid chasing the wrong avenue for too long.
Where do you see the company going now over the near term?
Stationhead is going to be a part of every new music release and will continue to innovate the digital music space with continued product development.
What’s your favorite restaurant in the city?
Lilia in Williamsburg.
