The Raleigh-based pioneer of music royalty auctions expects to make history in coming days when it closes the first ever multi-unit securitized auction of royalties and receives federal approval to auction off oil and gas royalties.
In both cases, investors get easy access to assets never publicly available for sale before, as well as recurring monthly revenue for the life of the investment. And content creators and property (with oil & gas lines) owners have a new way to monetize their work or holdings.
But for Royalty Exchange, the brainchild of former SAS software salesman Sean Peace, the new offerings validate a vision cast in 2011 that royalty investing could be a viable alternative to stock and real estate investing.
“It shows we have a lot of opportunity in front of us, and it’s not just in music,” says Sean Daley, the startup’s vice president of marketing and operations.
A $675,000 investment from Washington D.C.’s Grotech Ventures and a pair of New York investors is serving as bridge financing this summer, but Royalty Exchange expects to close a series B round yet this year to fuel the company’s growth past this month’s milestones. Conversations are under way to determine the right amount to raise, Daley says.
The full post can be read at ExitEvent.
(Note: ExitEvent is a news partner of WRAL TechWire.)