Dequency, the world’s first Web3 music synchronization licensing platform, raises $4.5 million in a Seed Funding round led by Borderless Capital.
What Dequency Does?
A synchronisation licence (also known as a “sync licence”) must be agreed between the parties for all visual productions that use music. Dequency is building a decentralized music licence platform that allows music and visual creators to interact, collaborate, and transact directly with one another for the first time. Dequency, like Bitcoin’s trustless digital payments, removes third parties from music licencing transactions to speed up payments, lower fees, and give market participants ownership of the system.
On its official website Dequency describes itself:
“Dequency is the world’s first web3 synchronization licensing marketplace. We’re building a platform for music and visual creators to connect and collaborate on NFT art and metaverse content.”
Dequency claims that once the platform is launched, It will be the only option to license music on-chain for blockchain-native content such as motion-visual NFT projects, games, and metaverse productions.
Dequency was founded in early 2021 by music industry veterans Keatly Haldeman, George Howard and Mark Ross. Haldeman is co-founder and former CEO of Riptide Music Group, a publishing company and record label specializing in the synchronization of music to picture.
Dequency Co-Founder and CEO Keatly Haldeman is passionate about growing the music creator economy and leveraging Web3 tools to optimize for complete financial alignment with creators.
“As the market for digital visual art grows, the addressable market for musical art grows meaningfully via sync. The Dequency platform facilitates communication and direct transaction between music and visual creators, giving them the opportunity to benefit from this explosion of artists entering the space.”
The music startup will use the funds to build Dequency’s peer-to-peer function, enabling music creators to upload their work to the platform and directly license for use in visual art projects.
Co-founder George Howard pointed out that licensing of music into film, tv, or other applications in 2022 is currently akin to booking travel in 1975; inefficient, rife with unnecessary intermediaries/rent seekers, and closed off to those unable to get through the corporate gatekeepers. “At Dequency we are guided by a “purpose, not product” mindset to help creators establish and maintain sustainable careers on their own terms,” said Howard.
Dequency is building on the Algorand blockchain
Dequency has selected Algorand blockchain for its Music Sync licensing Platform. Founded by legendary cryptographer and Turing Award-winner Silvio Micali, Algorand is an open source public blockchain based on a pure proof-of-stake consensus protocol that supports quick, efficient, and secure transactions anywhere in the world.
Steve Kokinos, CEO of Algorand, said:
“Algorand was purpose-built to enable new economic models that remove friction and promote inclusion. Dequency’s vision of a peer-to-peer music licensing marketplace does just that–it prioritizes creators and removes inefficiencies for artists trying to build sustainable careers. It was exciting to see them make history with the first ever on-chain sync license during Decipher this past Fall, and it’s a privilege to support them now as they enter this next phase of building out the platform.”
Dequency is now backed by prominent investors
Dequency is now backed by prominent investors. The lead investor Borderless Capital has put $1.5 million in the firm. Rounding out the cap table are strategic institutional partners Endeavor and Riptide Music Group, and individual investors Steve Kokinos (CEO Algorand), Vinny Lingham (Co-founder & former CEO Civic), Lyndon Rive (Co-founder & CEO Solar City), Peter Rive (Co-founder & CTO Solar City), Kimbal Musk (Founder Big Green DAO, board member SpaceX & Tesla), and Tosca Musk (Founder & CEO Passionflix).
David Garcia, CEO and Founding Managing Partner at Borderless Capital, said:
“Music was part of the metaverse world even prior to the existence of the Blockchain. We are really excited to join Dequency and support their vision of native on-chain music synchronization licensing, power the entire creator’s economy and bring it to the next level.”
Embracing blockchain technology across the music industry will streamline the management of rights and royalties by providing a single version of the truth that is independent of territory and rights ownership details, guaranteeing that everyone is paid the correct amount in a more timely manner. This might save the industry billions of dollars in lost revenue, late payments, and litigation fees. However, for this to happen, the industry must join together to establish a common practice and have faith in one another and the technology.
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