Younk is the first blockchain-based community music record label where artists get noticed and supported directly by the community. Its mission is to modernize the music industry and to help artists be heard. The community gets involved in the funding of up-and-coming hits in exchange for master rights of produced tracks. Younk has already raised US$2.5 million in equity funding from private investors. The Younk platform is available at: www.younk.com.
Younk has already created a working product, the beta is available at www.younk.com. Currently, we have over 150 tracks uploaded by more than 50 artists from all over the world, as well as 1000+ active members of the community who are actively involved in looking for the next hits. So far, our team consists of 50 people, with a corporate office and video production studio in Los Angeles and an operational office in Kyiv, Ukraine. Current track production capacity is 2 fully completed tracks per week, with 4 already finished tracks uploaded to major streaming platforms (Spotify, Apple Music, etc).
Currently, there are more than 176 million online music service subscribers. 21% of them have active discovering and sharing behavior, and they believe they have good taste in music. These 35+ million people are our target audience, as well as the thousands of emerging musicians all over the world in constant search of funding for their creativity.
Problem or Opportunity
With almost 70% of the industry monopolized by three major labels
(Sony, Warner, and Universal), the existing marketplace suffers from a
number of serious structural inefficiencies such as a lack of fair artist
compensation, near-impassable entry barriers for emerging artists, and non-existent access for music consumers and investors to participate in the music industry’s business opportunities.
Solution (product or service)
Younk is a next-level platform that aims to connect artists, listeners, talent
scouts, and music industry investors on a single, peer-to-peer ecosystem in
order to establish a community-driven hub for music creation, discovery, and
Free of intermediaries, entry barriers, and limitations set by the dominating
corporations of the industry, Younk will enable artists to break through and
gain access to wider audiences, financial support, and better compensation for their work, in parallel making business opportunities accessible for hit-
hunting listeners looking to find prospective stars to support in the
beginning of their careers, driving their emergence in exchange for co-
ownership in produced tracks.
Currently, Younk doesn't have any direct competitors with a similar business model, but traditional music labels, such as the Big Three (Sony, Universal, Warner) remain our largest competition. Streaming platforms and crowdfunding platforms such as SoundCloud and Indiegogo are also our indirect competitors, but they have a noticeably different business model.
Advantages or differentiators
The Younk platform has a unique blockchain-based crowdfunding engine for emerging artists, which allows them to involve their fan base to receive financial support for the production of new tracks and/or albums. Younk's biggest advantage is that people not can not only support their favorite artists but become a master rights co-owner of future hits. This will definitely make life easier for artists who are searching for funding, giving them more time to write future hits. Furthermore, Younk is not only a crowdfunding platform, but also a community-based record label that will help artists on every stage of track production and distrubution.
We expect 1 million active community members within the next 3 years, with an average contribution of $20/month. In the next 5 years, we plan to have produced about 11,000 tracks, 10% of which we expect to become hits. According to our calculations, we expect $280,000,000 in revenue in the next 5 years. Total expenses in the next 5 years are not expected to reach over $100,000,000. Projected EBITDA for the next 5 years is $180,000,000
We take a 20% share in master rights of each track funded by community and produced with the Younk Platform, then give 51% of master rights to the community and the 23% to the artist, and 6% to the producer. The platform retains 100% of administrative rights, which allows the platform to collect future royalties from streaming, licensing, and synchronization of produced tracks, and then distributes the royalties according to master rights ownership using smart contracts and blockchain technology.
Money will be spent on
We are looking for up to $10,000,000 in aggregate principal amount of convertible promissory notes for the worldwide marketing campaign and production of promising tracks. Currently, we have a proven business concept which allows us to generate revenue and we are going to spend around $10,000,000 over the next year for scaling. Also, we are going to create our own TV show which will be based on turning up-and-coming musicians into stars.
Offer for investor
Will be discussed during the process of negotiations.