Magna Takes “Major Position” In PledgeMusic
Recent hires at Kickstarter signal that the crowdfunder is ramping up its music industry outreach. To counter that move and expand its own successful footprint, music centric competitor PledgeMusic has gotten a cash infusion from one of its main investors Magna Entertainment.
Magna Entertainment, a division of the investment firm Magna, today announced that it had taken a "major position" in PledgeMusic. Details of the deal were not disclosed, but the New York based venture capitalists invested $3 million in PledgeMusic in 2014.
Direct-to-fan e-commerce platform PledgeMusic creates monetization opportunities for musicians that range from advance purchase and merch to special fan experiences. The London based startup was recently named one of the Top 10 Most Innovative Companies in Music by Fast Company. Its artists include LCD Soundsystem, Lindsey Stirling, The Libertines, Cold War Kids, Rufus Wainwright, The Flaming Lips, 311, Def Leppard, Rob Zombie, and KT Tunstall.
Magna: A VC That Gets Music
Magna Entertainment is led by music industry veteran Russell Rieger. Rieger served as General Manager and EVP of Creative for Madonna's Maverick Records working with artists including Prodigy, Alanis Morissette, Muse, the Deftones. Prior to Maverick, he was the GM of London Records and began his career as a manager for Modern English, The Replacements, The Del Fuegos and Cyndi Lauper.
