Sonomo specializes in democratizing music investments by allowing users to invest in fractional shares of music royalties. Sonomo offers two main investment options: individual songs and collections of songs known as Baskets, which function similarly to ETFs. This platform hosts a secondary market where you can trade shares, with median portfolio yields reaching 27%.
Key numbers
Who can invest?
How it works
You can invest in Sonomo if you are a resident or citizen of the European Union and if you are at least 18 years old. For record labels and artists, Sonomo is available worldwide, except for countries sanctioned by the EU, UN, United States, UK, and Canada.
- Specialisation: Fractional shares of music royalties
- Minimum investment amount: €0.01
- Currencies supported: €
- Foundation year: 2019
- Commission: 0%
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Instruction:
Setting Up
To start, create an account on the Sonomo platform by providing a valid email address and selecting a strong password. After account creation, Sonomo evaluates it to ensure all requirements are met. This evaluation process typically takes about 7 days, during which Sonomo verifies the provided information and assesses whether you meet all necessary criteria.
Invest
Share Purchase and Pricing
1. To begin, create an account and deposit funds.
2. Shares can be purchased directly from artists or other users.
3. The initial share price is set by the artist or rights holder within a market cap range defined by Sonomo.
4. In the secondary market, share prices fluctuate based on market demand and supply.
Investment Overview
The investment page provides song’s performance and potential, including its current value, artist details, and streaming data over the past month. Important financial metrics are displayed, such as the monthly yield, market cap, number of shares issued, song age, and earnings per share (EPS). Key dates are highlighted, such as ex-dividend dates and payout dates.
Benefits
Detailed Information: Sonomo provides extensive data and visualization tools.
User-Friendly Interface: The platform’s intuitive interface makes it easy to buy and sell shares, track performance, and receive payouts.
Regular Earnings: Monthly payouts ensure a steady income stream from investments, with clear timelines and eligibility criteria.
Risks
Market Volatility: Share prices in the secondary market can fluctuate based on demand and supply, impacting the value of investments.
No Guaranteed Returns: As with any investment, there are no guarantees. Songs may not generate the expected streaming revenue, and investors must be prepared for this uncertainty.
Earnings Calculation and Distribution
Your earnings are based on the percentage of shares you own relative to the total shares issued for a song.
Sonomo disburses streaming payments on the 15th of each month. Payments are forwarded as soon as they are received from the song’s distribution company.
For instance, if a song generates 100,000 streams at a rate of €0.004 per stream and you own 1%, you would earn €4 (0.01 * 100,000 * €0.004). Earnings are deposited into your account on a monthly basis.
Artists use Sonomo to raise funds for new projects and enhance their marketing efforts. By selling shares of their future revenues, they create a network of investors who are financially motivated to promote the song. This creates a unique marketing team invested in the success of the music.
Contact
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