A Brief Introduction To SongVest
How can you invest in music royalties? One of the most interesting emerging platforms is SongVest. While there are others in the space, SongVest has developed an SEC-qualified offering that allows investors to purchase shares of music royalty streams for as little as $100.
SongVest has had a bit of a bumpy start to these offerings, but it looks like they are finally getting into a groove. Let’s take a brief look at their history so you can see what I mean. This will be based on their SEC filings and what I have personally seen following the platform for the past year.
September 30, 2021
SongVest’s fractional music royalty offering officially kicked off with “Hit The Quan.” This first offering was an early success, selling out and fully closing in late February 2022. Unfortunately, investors would have to wait a long time for a repeat performance.
February 9, 2022
SongVest launched 3 new offerings. These new offerings changed things up a bit. While “Hit The Quan” was a small offering – totally just $31,200, the second round of offerings had a total maximum investment of over $885,000. Another change to the formula was the price per share – changing from $16 for “Hit The Quan” to $250. All 3 of these offerings failed to meet the minimum offering amount and were withdrawn.
After failing to meet the minimum for their second wave of investments, the platform entered a bit of a rut. It wasn’t until June that another potential offering, “Chippass,” picked up traction in the VIP auctions that serve as qualification of whether shares will be sold on the platform.
While the VIP auction for “Chippass” was successful in June, it took until mid-September for shares of the third wave of investments to be available for investors to purchase. While “Chippass” performed well, selling out and closing just one month after launching, the offering that launched alongside it, “DJ Fresh,” was again withdrawn.
There was a 7 month gap between the second and third wave of fractional music royalty investments launching on SongVest. The 4th wave came just over two months later, this time with two out of three offerings closing successfully.
A fifth wave hit just over a month later in early January with two offerings. The SongShares for “Onyx, Travis Scott, The Notorious B.I.G. & More” successfully sold out in just under 1 month. However, the other failed to meet the minimum investment threshold at the end of February.
While that seems like a bit of a setback, it may simply be indicative of the strong interest in the pending sixth wave of offerings.
Earlier today, the sixth wave launched for public sale.
March’s Sales Have Already Set The Bar
There was over $220K of assets that went up for public sale today, and they are flying off the proverbial shelf. The “Young L Catalog” sold out in less than 24 hours. Almost 85% of the “Eric Cain Recordings” SongShares and 47% of “Countdown” SongShares have also sold.
That’s nearly $126K of SongShares sold within the VIP sale and the first few hours of public sales. It’s an even more impressive total considering that the total successful sales for SongShares before this totaled to roughly $155K-$160K.
It’s not perfectly consistent, but you can see SongVest starting to get into a rhythm with their fractional investment opportunities. They’ve been managing to have shares of multiple new offerings available for purchase every 1-2 months.
As the amount and size of offerings in an investment wave gradually increase, there will also be more opportunities for users to purchase shares between new listings going live. This will go a long way towards increasing the accessibility of music royalty investment opportunities.