- Slip.stream sells a subscription service to creators that provides background music for their videos.
- The year-old company has closed a $7.5 million Series A round led by Sony Music.
- Read the pitch deck they used and outline opportunity prospects, revenue models, and key stats.
Slip.stream, a subscription service that provides royalty-free music and sound effects for developers to use in their content — about 40% of whom are livestreaming gamers — has boosted its funding coffers.
The startup last week raised a $7.5 million Series A led by Sony Music Entertainment, with participation from previous backers Third Prime and LightShed Ventures. Launched in April 2021, Slip.stream had previously raised a $3.25 million seed round, bringing total funds to $10.75 million.
Slip.stream replicated the pitch deck it had been using to raise money for about four months and updated it after pitch meetings based on feedback. The company wanted to highlight the platform’s early adoption, current reach and potential at scale, CMO Jesse Korwin told Insider.
“The ‘Majors’ wasn’t our first target — we originally wanted to go the classic VC route,” said Korwin, “but we realized that having one of the big music companies as a backer gave us a lot of validity and support for our vision offers .”
The funds will be used to expand its team of 11 full-time employees (and 13 developer contractors in Colombia) and strengthen its music catalog, which currently includes 60,000 songs and 40,000 sound effects.
As part of the round, Slip.stream will work with Sony to onboard musicians on its platform, as appearing in content from creators can create marketing exposure for emerging artists.
Slip.stream has 100,000 free and paid creators using its service and has over 500 million total followers. The ratio of free to paid subscribers is not broken down. While the free tier, which includes limited tracks, requires attribution, a subscription starts at $8 a month — rising to $18 if creators want to include music in ads.
“An Opportunity to Level Up With Them”
Slip.stream says its focus on streamers is a differentiator amid a crowded market from competitors like Epidemic Sound, Musicbed, Artlist and Songtradr.
“Our go-to-market strategy is to focus on gamers because it’s not an emerging market, but it’s a lot less mature than the YouTube market,” said co-founder and co-CEO Dan Demole
has dealt in particular with music copyright law in recent months. “It gives us the opportunity to rise alongside them.”
In addition to its service for creators, Slip.stream is in the process of building a similar subscription service for artists. The product is currently available by invitation only and allows artists to apply to have their tracks featured on the platform.
Slip.stream has also released its own music “packs” — or mini-compilation albums — alongside partners like FaZe Blaze and TikToker Tommy Unold. For these projects, it pays artists an upfront fee to create music and splits
Back-end revenue between the artists and creators who oversee each release. Slip.stream’s goal in these ventures is to acquire subscribers.
Slip.stream was founded by Korwin and Demole, formerly of audio ad agency Jingle Punks, along with musician and manager Anthony Martini and Fuse veteran David Carson.
Recent hires include Chris McDonald, SVP of Business Development, who hails from Epidemic Sound; Casper is veterinarian to Shan Huang, Head of Growth for Marketing; and Michael Feldman as Director of Talent and Influencer Relations.
You can check out the deck that Slip.stream brought to Sony in October and finally ended the label’s involvement in January. The deck has been edited by Slip.stream for public sharing.