Updated: Apr 5
tl;dr Go here & tell them 3QFI sent you.
Okay, for those that wanna learn more, there’s a new option for music royalty investors as beatBread has just entered the marketplace!
As you may know I'm a big fan of adding music royalties to my investment portfolio. There are many reasons as to why, which you can read about here. But the bottom line is it is a growing asset class with solid returns that adds a great deal of diversification to your portfolio.
One of the questions that I constantly get from potential investors is what smaller investment options exists. Now I have a much better answer as beatBread allows investors to invest as little as $2,000. How are they able to do that? Easy - they are offering the ability to bid on fractional shares of a catalog. There's a big market need for this. beatBread just may be bringing to market something that’ll fill that void. I’m ridiculously excited about it & can't wait to build my own investments with them.
This is a beta test as beatBread is wanting to sample the market and see what demand is there. If the response is solid (and I don’t know why it wouldn’t be) they will continue to expand it and increase the number of offerings moving forward. This is a ground floor opportunity for investors.
Wait, What is beatBread?
Great question. Here's a quick overview video. I also pulled this right from their website which may help:
beatBread’s mission is to empower artists so that they can own their art and control their careers. We give more artists access to funding and more choice to select the promotion, marketing, and production partners that best fit their unique needs.
beatBread is a lucky combination of music business executives with decades of experience, start up folks who love music, data scientists who live to dig into billions of data points and software developers who were born to build cool stuff.
We are all unified by a mission to help more musicians stay independent and keep control of their work and their careers.
I’ve spoken with Peter Sinclair (Co-Founder & CEO of beatBread) multiple times leading up to this offering. He’s really focused on building a marketplace that allows more investors the opportunity to enter it while ensuring that the artists are well taken care of in the process.
What Makes beatBread Different?
There are a few things that make beatBread's offerings unique:
Bid on fractional shares of a catalog
Invest as little as $2,000
Top tier catalog performance analysis for approved investors
Existing catalogs as well as new releases
Sounds Great, How Do I Invest?
So how do you get started? There are 4 easy steps to the process. Keep in mind, Step 1 is the ONLY thing you have to do at this time, it is free and there's no obligation.
Step 1 - Apply: Apply to be an investor with beatBread. It’s not as scary as it sounds, you simply need to follow this link and fill out some REALLY basic information. Be sure to tell them you found out about this through 3QFI to ensure priority access (just means you'll jump to the front of the line)! The window for applying to be an investor in their beta closes April 16, so don’t delay. Also keep in mind there’s no obligation after signing up, it costs nothing & spots are limited so better to apply early than wait.
Step 2 - Chat: beatBread will then reach out to you to make sure you’re a human and answer any questions you may have. This is just a simple verification process, similar to what the other music royalty investment marketplaces do. During this chat you will find out if you are approved to become an investor with them.
Step 3 - Bid: Towards the end of April their first offering will be made available to approved investors. This offering will allow you to bid on a partial share of the catalog - investing as little as $2,000. For this step you will review the information of the specific music catalog coming to market and make your bid with beatBread. I've had a sneak peak at some of the analysis they are pulling together and it is top notch. Only those who are apply to become and investor and are approved will have access however. The mechanics of how to make a bid will be provided to approved investors prior to the first bid going live.
Step 4 - Receive Confirmation: Offers will be reviewed and the winners will be selected. More to come on this actual process but basically highest bidders win (yes, plural...as there will most likely be multiple winners due to the ability to bid on fractional shares of catalogs).
Bonus Step - Profit!: (Okay, just threw this in here to remind you why you'd want to do all of this in the first place)
What Happens After Market Beta Test?
Assuming that this beta is a success (and it should be), there are several other offerings that will be coming to market immediately after this first one closes. Once you're an approved investor, all of these opportunities will be open to you.
It is clear to me that beatBread is not afraid to experiment with what investors want to see as well, so I expect their offerings to continue to fill the needs of the investor community (guaranteed returns, investing in growing artists, investing in brand new releases, small investments as well as large).
Opportunity is knocking, the question is are you going to answer it?
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