Pioneering Music Investment: An In-depth Conversation with SongVest President, Sean Peace
Today, I'm sitting down with Sean Peace, the innovative Founder of SongVest. With a tech entrepreneurial background, Sean took a distinctive path, carving his name in the intersection of technology and music. His insights on creating fan-oriented music investment platforms are both captivating and thought-provoking.
What inspired you to start this particular venture?
Coming from a tech entrepreneurial background, I didn't have much experience in music initially. However, a songwriter friend mentioned her intention to sell her catalog. This sparked an idea – would a fan pay more than an investor to own a piece of a song? So, I embarked on this journey.
I quickly found that scaling such a model was tricky due to issues related to securities and royalties as this was back in 2007. But I identified a gap – a marketplace for investors to purchase music catalogs was missing. So, I shifted my focus and established Royalty Exchange, the first marketplace allowing investors to acquire catalogs through auctions, collecting royalties. This was my first significant entry into music.
What milestones has your startup achieved since its inception?
While building several different platforms over the years, our biggest achievement was not just starting SongVest in 2020 but it was getting our first SEC Qualification with “Hit the Quan”. While we could not create royalty based securities back in 2007, now, because of the JOBS act and changing SEC rules, we now had a way to create SongShares which are fractional interests in music royalties which we can sell to the public
One unique feature we developed is our reverse auction engine. This concept sprouted during my time at Royalty Exchange and matured at SongVest. Unlike traditional IPOs, where the price per share is fixed, our model doesn't arbitrarily set the price. Instead, we let the fans dictate what they're willing to pay per share, essentially gamifying the pricing of the securities. This 'VIP Auction' mechanism was a significant milestone for us, merging technology and our unique user experience.
What is your long-term vision for the company?
I believe the vision for the music industry transcends the company. Technologies and trends such as fan engagement techniques and NFTs have emerged, yet none have proved sticky. However, we believe that the concept of IPO'ing songs, similar to companies on stock markets, will become ubiquitous in the music industry. It brings fans and artists closer, building upon platforms like Indiegogo, Kickstarter, Patreon, and Twitch.
In essence, the ultimate fan and artist relationship is realized through investment in a specific song or artist. Whether SongVest leads this vision or a competitor does, the notion of IPO'ing a fan engagement investment will be a game-changer in the music industry. Our hope is that SongVest will be a significant part of this transformation.
As our conversation with Sean draws to a close, his innovative approach to integrating music and investment becomes undeniably clear. By forging a closer connection between artists and fans, his vision is reshaping the music industry. We look forward to seeing how SongVest will continue to disrupt traditional models, bringing an exciting era of music investment to the forefront.