Musiio secures funding at $10m valuation because it indicators Hipgnosis and expands product portfolio
Fast-growing AI company Musiio has completed a new round of investments, signing Hipgnosis as its newest client, and introducing a new Custom Filters feature that it believes offers a much more tailored and effective catalog search.
The size of the funding round is unknown, but has given Musiio a valuation of $ 10 million. That’s $ 3.5 million in 2019.
The latest round included investments from Premiumbeat founder Francois Arbor and Tileyard Group owner Paul Kempe.
Musiio co-founder Hazel Savage told MBW that while the new funding was obviously helpful but not operationally needed by her company, it demonstrates Musiio’s increased standing with strategic investors from various sectors.
The Hipgnosis deal is now known as “statement signing”. Savage said, “When I started Musiio, I knew Search would be our best performing product. More music is being created than ever before, and the value of music as an asset is tremendously fueled by companies like Hipgnosis.
“But you need to be able to organize and search this asset to maximize its potential, and that’s exactly what we’re doing here at Musiio. We make extremely large music catalogs very searchable. Think of it as Google Image Reverse Search, but for audio. “
Tom Stingemore, EVP Sync & Creative at Hipgnosis, added, “Musiio’s AI not only answers a longstanding question, it is up and running – and working. Crucially, the Musiio team worked with us to tailor their platform to our exact needs.
“With this tailor-made tool, we can now immediately filter our 60,000 songs so that they meet the needs of music regulators, directors, advertising agencies, producers and broadcasters alike – at the push of a button.”
MBW spoke to Savage to find out more about the new funding, Musiio’s latest financiers, Hipgnosis deal and their company’s hit potential algorithm working with Vans in Asia …
Musiio is still a relatively young company. Can you give us an idea of the growth you have seen in this short period of time?
We are only three and a half years old, but we have signed 55 corporate contracts, our sales have grown by over 600% from 2019 to 2020 and we are well on the way to double our sales again in 2021 (compared to 2020).
But what I’m most excited about is our new $ 10 million valuation; It really shows that investors have confidence in us and the market is recognizing our growth from a $ 3.5M valuation company in 2019.
Plus, the past two months have been profitable and that’s always exciting!
Where does the new round of financing fit into this pattern? What made you do it and what is it used for?
Funnily enough, I didn’t really need the money when I raised this round. My goal was to prove that there were strategic investors who believed in what we built.
Francois Arbor, the guy who sold Premiumbeat to Shutterstock for $ 47.5 million, is an investor and the other is Paul Kempe, the man behind it [UK music studio/business campus/property group] Tile courtyard. These guys are knowledgeable about music technology and appreciate us very much, this is the new face of Musiio for 2021.
You have just signed the always busy Hipgnosis as a customer. What kind of business is it, and can you say something about the value of Musiio’s search functionality for a business like this?
I’m very excited to announce Hipgnosis as a customer, they have been one of the great music movers of the past few years so the fact that they use the Musiio Search Tech on a daily basis is an amazing tick in our favor.
The brilliant thing about Hipgnosis is that they acquired all of these amazing songs, but the challenge is to get these songs together to form a unique, unprecedented combination of songs (a unique catalog, if you will). With the AI-assisted search, you can search your own catalog as if you had managed these songs for a lifetime – effectively, quickly and clearly.
“If you represent a huge catalog but have different geographic rules or different ownership percentages for certain titles, all of this can be programmed into Musiio and made searchable along with all of our other functions. As far as I know, we are the only AI search company with this capability. “
Not only does Musiio offer super-accurate, lightning-fast searches on thousands of tracks, we also like to add the customer’s own data in a new function that we call “Custom Filters”, and that really impressed Tom [Stingemore, Head of Sync at Hipgnosis]. He told me that he had heard of this technology in theory, but seeing how it worked, and then that our team did everything they could to make it the way it wanted … they were very happy, I’m happy to say to be able to.
It actually took my great co-founder, Aron Pettersson, six months to create custom filters, but the wild thing is how deceptively simple it is. If you represent a huge catalog but have different geographic rules or different ownership percentages for certain titles, all of this can be programmed into Musiio and made searchable along with all of our other functions. To the best of our knowledge, we are the only AI search company with this capability.
Who can you still count as customers at this point in time?
Besides Hipgnosis we also have Epidemic Sound, Jamendo and Vans. I wish I could name more, but 70% of my customers are completely confidential; You will be surprised who is run by Musiio.
The last time we spoke, YOU JUST STARTED THE HIT POTENTIAL ALGORITHM. How has that gone over the past six months?
Hit Potential is still a very new and exciting product, but I think it scares the industry a little bit, so let’s take it slowly and steadily. What I can tell you is that the current Vans Musician Wanted campaign in Asia is supported by Musiio Tech, including Hit Potential. Vans Asia has really embraced AI for A&R.
What are your next goals, either in terms of expanding your portfolio or expanding your presence in global business?
I’m always looking for more deals. It’s funny, I never made a sale before I became a founder, but it’s actually addicting once you get into it. I love presenting our product and putting together offers that will save my customers money or make them money. What a buzz!Music business worldwide