Company name: Gimme Radio Inc.
Amount raised: The company disclosed a $6 million raise just before Christmas, as we previously reported. On Thursday, CEO and co-founder Tyler Lenane revealed a notable new investor: iHeartMedia Inc. (Nasdaq: IHRT).
What they do: The internet radio streaming service has two channels currently, Gimme Metal and Gimme Country. More than 1,200 artists have hosted shows across the two stations. Fans can support those artists through tips and buying merchandise and vinyl subscriptions. They also can communicate in a live feed with the artists as they DJ their show.
Why it matters: Streaming's surging popularity has disrupted and overturned the traditional business model for how artists made money. Gimme Radio aims to be an antidote for independent artists, especially as Covid-19 still weighs on touring and concert decisions. The business was founded in San Francisco in 2017 and later relocated to Nashville.
What the funds will be used for: In addition to a cash investment, iHeartMedia also provided Gimme Radio with advertising credits for use across its brands and platforms, ideally drawing more listeners to Gimme Radio's existing and potential new stations. "The backing of iHeart Media gives Gimme reach and scale exponentially beyond what it's been able to achieve previously … to amplify its reach to millions of fans across more genres," the company said in a press release. Today, Gimme Radio's Nashville presence is just Lenane and a contractor, with the rest of the company working remotely. Gimme Radio is looking to hire, including key roles in engineering and e-commerce.
Other investors: Music labels and companies such as The Orchard, Concord Music, Metal Blade Records, Riser House Entertainment (of Nashville) and Quartz Hill Records (also based in Nashville).
Quotable: "In an era of pennies, Gimme is already putting whole dollars into artists' pockets through incredible, community-based fan experiences. Already, we have DJs who are earning tens of thousands of dollars in tips alone — a number that we expect will grow significantly as we use this financing to scale up our audience and expand Gimme Radio to more genres," said Lenane, a former executive at Apple Music and Beats Music. Other founders have experience at Google Play Music and Rhapsody (now known as Napster).
