For aspiring musicians, the path to launching a career in the entertainment industry used to mean moving to Los Angeles or Nashville — cutting your teeth in the business by playing in bars or busking on the street.
But Chicago startup Songfinch created an entirely new avenue for musicians to connect with fans, build up their 10,000 hours of practice and earn a living through their craft. Now big-name investors are backing the startup as it sets out to change how musicians get paid and how fans source personalized, one-of-a-kind tunes.
Songfinch announced Wednesday that it has closed a $5 million seed round led by Corazon Capital, a Chicago VC firm led by Sam Yagan. Other new investors include music producer Quincy Jones and Grammy winner Doja Cat. They join a group of investors that include music superstar The Weeknd, Atlantic Records CEO Craig Kallman, School of Rock CEO Rob Price, Recycled Paper Greetings co-founder Michael Keiser, and David Kalt, the founder of Reverb, who invested $2 million in Songfinch in 2021.
The cash infusion comes as Songfinch has quickly grown its platform that lets you buy personalized songs from musicians. More than 1,000 musicians are active on its platform, and in the last two quarters, artists delivered more than 40,000 songs to fans, co-founder Scott Kitun said.
Founded in 2016, Songfinch lets customers connect with musicians and request songs as gifts, typically for anniversaries, birthdays, Valentine's Day and other special occasions. Songs start at $199 and can be turned around in less than a week. Artists keep 50% of the transaction, and fans can tip musicians on the platform.
Kitun said Songfinch did nearly $6 million in revenue last year and is expecting to grow 300% in 2022. The startup, which currently has about 30 employees, has paid out more than $5 million to artists to date.
Songfinch's growth comes as Chicago has quietly become a hotbed for creator economy startups, particularly those connected to the entertainment industry. Cameo, born in Chicago, pioneered an entirely new way for fans and celebrities to interact. And Protege, led by an early Cameo executive, connects up-and-coming talent with celebrities and other top experts who can provide feedback and mentorship.
Kitun credits Cameo's success for paving the way for Songfinch's growth.
"Without Cameo taking off the way it did, this is impossible," Kitun said.
The average musician makes between $12,000 and $15,000 a year on Songfinch, but its top artists are earning up to $120,000 a year. Kitun said half a dozen artists will likely earn six figures this year.
"It's infinitely higher than what a normal musician would make," Kitun said.
Songfinch is also led by founders John Williamson, Rob Lindquist and Josh Kaplan, who is a music industry vet and Doja Cat's manager. Corazon Partner Phil Schwarz, who was also the former CMO of Tinder, is joining Songfinch's board.
