Music Distribution/Payments Platform Stem Announces $20 Million Funding

Wiz Khalifa: A Stem Client (Photo: Kathy Hutchins / Shutterstock.com)

STEM, a distribution and payments platform aimed at providing independent musicians and labels with tools to grow their businesses, has received a $20 million round of funding, led by QED INVESTORS, a leading venture capitalist firm in the fintech space, and supported by BLOCK INC., a global technology and financial services company, joined by previous investors SLOW VENTURES and QUALITY CONTROL. 

The six-year-old company has distributed music by artists like BRENT FAIYAZ, MELII, WIZ KHALIFA and JUICY J along with record labels like BIG LOUD with artist-centric tools which enable the indie community to effectively manage their finances and run their business. 

This new round of investment will help fund the next phase of STEM’s growth as they launch a new range of tools to calculate royalties and process payments with greater speed, transparency, and accountability, 

STEM CEO MILANA LEWIS says, “It’s asinine that labels are still sending paper statements to artists a couple times each year. We believe that labels should have a dashboard that tells them how much they’ve invested and shows their artists and collaborators when they can expect to get paid. We’ve brought this experience to life for our clients, and now we want to give everyone the experience they deserve.”

STEM looks to provide simple access to sophisticated financial tools to all stakeholders in the music industry including artists, labels, songwriters, producers, and managers.

QED founding partner FRANK ROTMAN adds, “QED invests in companies driving the future of finance, and STEM is leading that charge in the music industry. MILANA’s vision for the future of payments in the music business promises to disrupt the status quo and empower artists, labels, and creators of all sizes. We’re thrilled to have STEM join our portfolio of fintech innovators and to offer our years of expertise supporting the growth of fintech businesses."

BLOCK INC.'s JESSE DOROGUSKER agreed, “We’ve seen firsthand the kind of creativity that small businesses are able to unlock when we remove the barriers to financial tools that let them accept payments, raise capital, and grow. We’re excited to support STEM’s mission to deliver that kind of power into the hands of artists."

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