RapChat, an app that lets people create music tracks — raps, as its name suggests — using a platform that crowdsources beats and lets people put vocals on top of them, has raised $2.3 million. Co-led by Sony Music Entertainment and NYC VC firm, the company’s investors include London Venture Partners, M25, TechNexus, Base Ventures, 500 Startups.
“RapChat has created a music studio that fits into your pocket,” Nico Wittenborn, lead Investor at venture capital firm Adjacent.
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RapChat says that it plans to use the new capital to invest in key hires across engineering, product, and marketing. The platform also plans to add distribution features to allow its users to distribute their music to music streaming platforms like Spotify and Apple Music. The company also intends to use the funding to increase the prize pools for Rapchat’s popular competition series Challenges, in addition to bringing established artists, producers, and industry executives on board to help mentor users.
Founded in 2015 by Seth Miller, RapChat reports to have 7 million registered users who it says have generated over 600m plays. At the moment some 250,000 songs are being created around a catalog of about 100,000 beats by 500,000 active users on the platform each month.