Independent musicians face significant monetization challenges, ranging from the meager per-stream payouts on major platforms to the difficulty of breaking through the saturated market. They also contend with a lack of resources and funding compared to major label artists, as well as ongoing debates around fair compensation and the overwhelming workload of managing all business aspects independently. Duetti is a music financing platform that empowers independent artists to monetize their catalogs through a data-driven approach. The company leverages its proprietary forecasting, pricing, sourcing, and marketing technology to optimize revenue streams for artists, providing immediate access to funds without the administrative burden. Duetti has collaborated with over 500 independent artists, facilitating deals typically ranging from $10,000 to $3M per artist.
AlleyWatch caught up with Duetti CEO and Cofounder Lior Tibon to learn more about the inspiration for the business, the company’s strategic plans, latest round of funding, which brings the total equity funding raised to $88M, and much, much more…
Who were your investors and how much did you raise?
Duetti recently raised $114M in new funding. This included $34M in equity financing led by Flexpoint Ford, with participation from existing investors Nyca Partners and Viola Ventures. Additionally, we completed an $80M asset-backed securitization (ABS), a pioneering transaction in independent music financing that positions us as one of the fastest-growing music rights companies in the past decade.
Tell us about the product or service that Duetti offers.
Duetti is a data-driven music platform that allows independent artists to monetize their music catalogs on their own terms. Through our proprietary technology, we provide fair pricing and streamlined deals for catalog sales, while also offering marketing and optimization services to maximize an artist’s reach. This model allows indie artists to access capital quickly, freeing them from the constraints of traditional record label deals.
What inspired the start of Duetti?
My cofounder, Christopher Nolte, and I recognized a significant gap in accessible financing within the independent music sector. With our backgrounds at TIDAL and Apple Music, we understood the challenges independent artists face. Our mission with Duetti is to provide these artists with the same financial opportunities that are often reserved for those in the major label system. We founded Duetti to democratize the music industry, empowering artists to monetize their work transparently and effectively.
How is Duetti different?
Duetti stands out by combining data-driven catalog pricing with a robust marketing network, including playlist placements and sync deals across digital platforms. Unlike traditional music financing that often ties artists into complex contracts, Duetti offers straightforward, flexible deals and extensive promotional support, allowing artists to benefit from an end-to-end solution that grows their audience and revenue streams
What market does Duetti target and how big is it?
We target the independent music market, which is experiencing rapid growth globally. As the sector now accounts for a substantial percentage of global music revenue, there’s a significant opportunity to support these artists with financial and promotional resources, and we’re excited to be at the forefront of this movement. For example, earlier this year Spotify announced that 2023 was the first year in their history whereby they paid over 50% of their royalties to the independent music sector (outside the major labels).
What’s your business model?
Our business model involves purchasing music catalogs or portions thereof from independent artists. These transactions are powered by proprietary pricing algorithms and supported by ongoing marketing efforts, including playlist curation and sync placements. Revenue is generated from the acquisition and subsequent monetization of these music rights, amplified by our promotional network.
How are you preparing for a potential economic slowdown?
Historically, one of the most attractive attributes of the music industry from an investment perspective is that it is relatively uncorrelated to the broader economy. People often continue to seek out music, even in challenging times.
At Duetti, we view our financial strategies through this lens, focusing on the resilience of our model. We’re committed to supporting independent artists and ensuring they have access to the resources they need to thrive, regardless of the broader economic climate.
What was the funding process like?
The funding process involved both equity financing and securitization, which required structuring with Barclays’ support as the sole structuring agent for the ABS.
What are the biggest challenges that you faced while raising capital?
One of the biggest challenges we faced while raising capital was the need for additional education about our innovative approach at Duetti. We’re doing a lot of new things that require investors to understand the unique value of independent music rights and the long-term potential for growth in this sector. Educating investors about our model and its implications for the future of music financing was essential.
What factors about your business led your investors to write the check?
Our investors recognized that Duetti stands out for its unique approach to music financing and catalog monetization. By leveraging data-driven insights and an innovative ABS structure, we’ve been able to create a sustainable, scalable model that serves the growing independent artist market. With a proven ability to increase visibility and distribution impact for artists, and a pipeline of flexible, fast-turnaround financing solutions, our investors see Duetti as uniquely positioned to address the evolving needs of musicians today.
What are the milestones you plan to achieve in the next six months?
We plan to expand catalog acquisitions, and grow our audience-impact programs, like its playlist network and sync placements.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Even with limited resources, it is critical to demonstrate attractive fundamentals for a business via accretive unit economics. Once investors buy into that it is more straightforward to obtain capital and scale.
Where do you see the company going in the near term?
In the near term, we’re focused on expanding Duetti’s presence in key music markets. Our offices in LA, Miami, and London (alongside NYC) will help us connect directly with even more independent artists, enabling us to offer them tailored financing solutions and further optimize their catalogs’ reach across platforms. Our goal is to empower a larger community of artists and set new standards in catalog monetization.
What’s your favorite fall destination in and around the city?
Hudson River Park is a great option.
