ANote Music Raises €2 Million to Turn Song Royalties Into a Tradable Asset Class

ANote Music, a Luxembourg-based platform that lets investors buy and sell shares in music royalties, has closed a €2 million funding round led by Seventure Partners alongside ScaleFund, with participation from existing investors and shareholders.

The company, which announced the round on 29 September 2026, did not disclose a stage label. It says its marketplace now includes more than 100,000 songs across 36 catalogues, has 52,000 user accounts and has recorded more than €28 million in cumulative transaction value. Earlier this year, it reported passing €2 million in cumulative royalty distributions to investors.

The raise is modest, but the business sits at an intriguing intersection of the music industry and alternative investing, at a time when streaming has transformed how songs generate income and investors are searching for assets whose returns are not tied to stock and bond markets.

How the marketplace works

ANote operates a two-sided platform. On one side, owners of music rights, such as artists, songwriters, publishers and catalogue holders, can sell a share of the future royalties generated by their songs. On the other, investors can buy those shares and receive a portion of the royalty income as it is paid out.

The infrastructure includes primary auctions, in which new catalogues are offered to investors, and a secondary market order book, where investors can trade holdings with each other. An automated system collects royalties from the music industry's complex web of collection societies, distributors and platforms, and distributes them to investors.

For rights holders, the platform offers a way to raise capital without selling their entire catalogue to a large music company or investment fund. For investors, it provides access to an asset class that was previously difficult to reach without significant capital or industry connections.

Why music royalties attract investors

Music royalties have drawn growing interest from institutional investors over the past decade. The rise of streaming services such as Spotify, Apple Music, YouTube and Amazon Music has created a more predictable and global stream of income from recorded music and compositions. Established songs, in particular, can generate steady revenue for decades as they are streamed, broadcast, licensed for films, advertisements and games, and performed live.

Because music consumption is largely unaffected by economic cycles, royalties are often described as uncorrelated with financial markets. That characteristic has attracted pension funds, private equity firms and specialist music investment funds, some of which have spent billions of dollars acquiring catalogues from famous artists.

Platforms such as ANote aim to open a slice of that market to a broader range of investors, allowing them to own fractions of royalty streams rather than entire catalogues.

The liquidity question

The central challenge for any marketplace in a new asset class is liquidity. Creating an asset is relatively easy; maintaining enough buyers and sellers to produce reliable prices and allow investors to exit when they choose is much harder. Without liquidity, investors may be locked into holdings they cannot sell, and prices may not reflect the true value of the underlying royalty streams.

ANote's secondary order book and its growing transaction history are therefore strategically important. Cumulative transaction value of more than €28 million suggests meaningful activity, but the depth of trading in individual catalogues will determine whether the platform can sustain investor confidence over time.

Valuation is another challenge. Royalty income can change as listening habits shift, songs fall out of fashion or streaming platforms alter their payment models. Recent changes to how some platforms pay for streams, including minimum thresholds and adjustments aimed at reducing fraud, show how quickly the economics can move. Investors need clear data on historical earnings and realistic assumptions about future income.

Regulation and investor protection

Fractional investment platforms for alternative assets, from art to wine to music rights, have multiplied in recent years. Regulators have paid increasing attention to how such products are marketed, whether they constitute securities and how investors are protected. Operating from Luxembourg, a major European financial centre with established fund and investment frameworks, may give ANote a solid regulatory foundation for expansion across the European Union.
## The streaming economy's winners and losers

The rise of streaming has reshaped who earns what in music. For catalogue owners and major labels, streaming has delivered a long period of revenue growth after the collapse of physical sales in the 2000s. For many individual artists and songwriters, however, per-stream payments remain small, and only a minority earn a substantial living from recorded music alone.

That imbalance helps explain the appeal of platforms like ANote to rights holders. An independent artist or small publisher with a catalogue that generates steady streaming income can use the platform to convert part of that future income into capital today, funding new recordings, tours or marketing without taking on debt or signing restrictive deals. For investors, the same arrangement offers a share of that income with a clear link to real-world listening.

The model also creates a new form of fan engagement. Some listeners are drawn to owning a stake in songs they love, turning a cultural connection into a financial one. Whether that enthusiasm translates into durable trading activity, beyond an initial wave of curiosity, is one of the questions ANote must answer as it scales.

The investors' bet

Seventure Partners, a Paris-based venture capital firm with a long history of investing in technology and life sciences, and ScaleFund, which focuses on growth-stage companies, are betting that ANote can scale its marketplace and become a trusted venue for music royalty investments in Europe.

The funding will support growth of the platform, including adding more catalogues, attracting more investors and deepening secondary-market activity. The company's ability to secure high-quality catalogues from well-known artists will be important, since recognisable songs tend to attract more investor interest and trading.

For the music industry, platforms like ANote offer a new source of financing for artists and rights holders, who have often faced limited options beyond signing away rights to large companies. For investors, including a growing base of global retail investors curious about alternative assets, they offer exposure to an income stream tied to culture rather than corporate earnings.

India, which has one of the world's largest music-streaming audiences and a vibrant film and independent music industry, may eventually see similar models emerge as its music rights market matures. For now, ANote's progress serves as a test of whether music royalties can become a mainstream, liquid asset class, or remain a niche investment for specialists.