Coop Records is excited to announce our investment in Daniel Allan.
Along with Palm Tree Crew Crypto, we’re co-leading our first Artist Seed Round as Daniel brings on $1M of outside capital to support the next leg of his career.
We believe in a world where fans can invest in the artists they know and love.
Today - that starts with deals that resemble early-stage tech investments, instead geared at creators.
The structure is not much different in practice.
Daniel set up a C-corp - Daniel Allan Entertainment - which owns all of his IP.
The round was done through a SAFE - in which investors receive a claim to the equity in Daniel Allan Entertainment.
Funding is non-recoupable - meaning investors are not participating in a profit-share, rather they are buying equity in Daniel’s brand as a whole.
While this is far from the end state - we believe this is an exciting model for a number of reasons.
Web360 - investors have exposure to all aspects of Daniel’s career
Ownership - Daniel retains the vast majority of ownership in his company.
Flexibility - Daniel can still sign a record deal - the investment only represents his share of masters, publishing and web3 income.
We also believe that artists can create value beyond their music.
Outside of the obvious value accrual mechanisms - streams, syncs, touring and selling NFTs - we see a world where artists have ownership in the platforms they create value for.
We’re excited to support Daniel as he earns equity in other businesses - thus adding to the value of his brand as a whole.
This model is one we believe can be replicated across many artists - and we’re excited to support more artists through similar models in the future.
Daniel is a perfect case study of the potential for artists to make a career using web3 as a backbone.
He’s grossed ~325 ETH in total volume from the sale of his Music NFTs to date - despite having a relatively small following on traditional platforms.
We believe that this positions him well as an independent artist with leverage as he navigates major label conversations.
His recent signing to CAA opens up a new lane of show opportunities - allowing him to develop a traditional fan base alongside his existing collector base.
Daniel has vocalized plans to build something bigger than himself - and we’re excited to watch him recreate and mold the playbook he’s created for other artists in his orbit.
The concept of hiring a team is relatively new for artists, and we’re excited to support Daniel as he explores this next chapter.
Coop Records has allocated $1M to Artist Seed Rounds.
We’re excited to explore more opportunities to invest in artists using similar blueprints.
This round would not have been possible without the support of his early collectors and web3 network.
The entirety of investors are web3-native and supportive of his work to date.
Over time, we’re excited to back artists who are not web3-native - and find more models to support independent artists at scale.