Social Music API Songclip Rakes in $11 Million From Investors in Latest Round

By James White | Saturday, March 13, 2021 | Startup, Tech, Art & Music

Internet technology company ByteDance may appear to lead social media platforms in the integrated use of licensed music through its massively popular TikTok app. However, startup company Songclip is offering a solution for other social media app companies hoping to increase user engagement with short music clips through their API, or application programming interface.

In a recent funding round, the startup company garnered $11 million from investors backing its business. Gregg Smith of Evolution VC Partners led the wave of support for the startup company, alongside other investors, including The Kraft Group, Raised in Space, Gaingels, and Forefront Venture Partners. After the results of the latest funding round for the business, the company has raised $22 million in total from interested investors.

"Social communication and expression represents one of the most exciting sectors for the music industry," said Smith, founder of Evolution VC Partners. "Songclip unlocks this new global opportunity, with turn-key technology and industry support."

Songclip app features shown on smartphones.

Encouraging Innovation With Music

Typically, using copyrighted music on social platforms like Youtube can result in demonetization and infringement, leading to the video or post in question being removed. However, other companies like Tiktok are working with music businesses like Sony Music Entertainment to license select songs for use on their platform while preserving the rights of labels and publishers.

Founded in 2016 by entrepreneurs Andy Blacker and John vanSuchtelen, the startup business provides a backend platform capable of managing licensed clips and music for social media companies and startups. Songclip aspires to simplify the process of implementing licensed music for social media companies and app developers by creating an application programming interface (API) that can be easily integrated into existing apps and platforms.

The API built by the software startup features an advanced search engine with the ability to search songs based not only on the name of the artist or title but also meta-tags denoting subjects like emotions, seasons, or even events. If you searched for “happy,” for example, the software would bring up songs associated with being happy, not just tracks with “happy” in the name.

Businesses or app developers using the Songclip API will also find that the platform automatically pays the required royalties for music clips to their respective owners. The startup business touts a wide range of applications for its product, from simple messaging apps to video-based social platforms and dating sites.

Merging Social Media and Music Industries

According to a report from the International Federation of the Phonographic Industry (IFPI), the global recorded music market produced revenues reaching $20.2 billion in 2019. Songclip has already partnered itself with leaders in the music industry, including Universal Music Group, Sony Music, and Warner Music Group. With companies like Bytedance experiencing great growth in popularity and revenue, Songclip’s startup business stands to gain great momentum with investors and potential clients.

About the Author

Headshot of James White

James White is a Michigan State University graduate with a BS in Environmental Biology. He is interested in reporting emerging trends in technology, especially with regard to alternative energy and environmental conservation.

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