Eight-year-old indie distributor DistroKid has officially received a “substantial investment” at a $1.3 billion valuation.
DistroKid higher-ups announced the funding round’s completion – and their company’s significant valuation – in a formal release that was shared with Digital Music News. New York City-based venture-capital firm Insight Partners, which joined Warner Music Group in backing Overwolf earlier this year, fronted the aforementioned “substantial investment,” though the announcement message doesn’t disclose the transaction’s financial or ownership specifics.
However, the release does indicate that over two million artists use DistroKid’s tools and services, with the company estimating “that it distributes more than a third of all new music globally.” Insight Partners’ investment “is expected to fuel the continued development of DistroKid’s industry-leading suite of tools for musicians,” the concise text likewise states.
Addressing his company’s newest funding in a statement, DistroKid founder and CEO Philip Kaplan said: “My goal since founding DistroKid was to build great things for musicians. Our growth has been wild, but the mission hasn’t changed.
“Most of all, we’re incredibly honored and thankful for every artist who’s chosen DistroKid to be a part of their journey. I’m excited to partner with Insight Partners as we continue building amazing things to help musicians and empower creators worldwide.”
Insight Partners managing director Deven Parekh added in part: “DistroKid is transforming the music industry with its laser focus on innovation, including the latest technology and engineering expertise. By providing developing artists with the same opportunities as superstars, DistroKid stands out in an industry traditionally known for being hard to break through.”
Worth noting on the latter front is that DistroKid kicked off 2021 by launching Upstream, a “matchmaking service” for artists who are seeking label deals. February saw the entity add Twitch to its distribution menu, while March brought with it the addition of Snapchat distribution on DistroKid – the first indie distributor that Facebook tapped for its Independent Artist Program in June.
Spotify still possesses a minority stake in DistroKid, and per the release announcing Insight Partners’ investment, Boston-based equity firm Silversmith Capital Partners – which led DistroKid’s “first outside investment in 2018” – is set to “retain a meaningful ownership position and representation on DistroKid’s board going forward.”
Earlier this month, DistroDirect launched with plans to democratize the distribution sector, including for music businesses, industry professionals, and labels. And SonoSuite continues to equip indie labels, management agencies, and others yet with the tools to roll their own distribution services.