LÜM, a Madison startup building a streaming music platform and social network that helps up-and-coming artists grow their fanbase, raised a seed round of funding as it gears up for its official launch this summer.
The startup announced Monday that it raised $750,000 in a round led by Frank Productions, a Madison-based concert promoter. Other investors were not disclosed.
The funding brings LÜM’s total funding to $1.2 million, according to LÜM CEO and co-founder Max Fergus, who was named one of Wisconsin Inno’s 25 Under 25 last year.
LÜM also announced that as part of the investment, Frank Productions' Director of Business Intelligence Dan Polans joined LÜM’s board of directors.
Founded last year, LÜM “gamifies” music discovery by letting fans rank and share new music with friends in their network. The startup says its free app offers users ad-free streaming and and exclusive looks at emerging artists. LÜM's business model revolves around allowing fans to monetarily support their favorite artists through a direct-to-artist subscription and digital tipping model.
The startup says it plans to use the funds to further develop the app, launch nationally this summer and hire more employees. So far, the app has been operating in beta mode. LÜM, which won the Greater Madison Chamber of Commerce’s Pressure Chamber, currently employs 11 people.
“Ultimately, we will be the go-to digital application for anyone interested in finding great, emerging music,” Fergus said. “LÜM is on a mission to create a platform where artists can finally succeed outside traditional streaming models, and fans can be the sole influencers—determining what music trends hit next.”
