Stem Lines Up $250M for Artist Advances
The distribution and payment company said it will offer more advances to artists who use their catalogs for backing.
Distribution company and payment platform Stem said on Tuesday it lined up a $250 million credit facility from Victory Park Capital to expand its popular advance check product.
Stem first started offering the product in 2020 to artists at various career stages, including artists like Justine Skye, who used the capital as bridge financing when transitioning from a major label to independent career. Other artists to use Stem’s financing include independent artist Brent Faiyaz, who relied on eight different advance checks in the past three years as he created his album Wasteland, released July last year.
Launched in 2015, Stem was created with an aim to give artists greater transparency into music industry finances and alternative sources of funding to support artists who want to run their own businesses. Stem chief executive Milana Lewis said the funding from Victory Park Capital will help more, including those who want to use their catalogs as collateral for cash and artists leaving the major label system.
Trending on Billboard
“Stem has demonstrated itself to be a premiere destination for artists, whether emerging or established, to grow their careers,” says Lewis. “This funding from VPC enables us to solve … both of these pain points in a way where the client can set their own terms.”
Mature artists who want to use leverage their catalogs as financial assets — rather than sell their catalogs for a lump sum — can get use Stem’s advances to get “market rate, near-term liquidity with flexible repayment” plans, according to a statement from Stem.
Artists who are leaving a major label who may not be able to take existing work with them, Stem can offer advanced cash backed by future projects. Stem says it does not take any ownership stake in the future works.
“Enabling access to capital is a major focal point for us, and we are excited to be partnering with Stem to help meet the financing needs of artists,” said Gordon Watson, partner at the Chicago-based financer Victory Park Capital.
More From Pro
