The advent of the iTunes Store brought about a monumental change in the way we consume music and since then the emergence of streaming services under a subscription model has further changed the music industry. Artists have moved from collecting royalties for individual album and single sales to collecting royalties per stream. Streaming royalties range from $0.0033 for Spotify per stream to $0.013 with Tidal per stream. With such an economy, any late payment for artists, especially small freelancers, can be taxing. paper chain is an instant payments platform that offers artists and creators short advances of their funds from streaming platforms at no cost. Structured like a digital wallet, artists receive daily payments from platforms such as Spotify, YouTube, Apple Music, Twitch, TikTok and Patreon and can access these funds through the company’s branded debit card. Paperchain’s infrastructure to enable instant payments is built on Web3 with the company using NFTs which represent aggregate creator content revenue streams and have no collectible or art value while its banking services are provided. in partnership with Evolv Bank. The company was founded in 2017, completed the first Alchemists Blockchain Techstars accelerator in 2019, and raised $2 million in funding.
Alley Watch met the CEO and founder of Paperchain Daniel Devar to learn more about the company, how the company improves cash flow for artists, strategic plans and much more…
Tell us about the product or service offered by Paperchain.
Paperchain is an instant payment app for creators. The Paperchain app gives creators a wallet to get paid every day, they can see actual streaming earnings, and a debit card to access payments immediately.
How is it different?
Nobody changes the speed of payments. While other companies increase the speed of spending with credit cards and loans, Paperchain increases the speed of money.
Which Paperchain target market and how big is it?
Targeting the $30 billion music streaming industry. The growth of independent creators represents 50% of the music recording market. Over 50 million global creators. Over 1 trillion hours of streaming. And it’s up 26% year-over-year.
What is the business model?
We charge a fee on the GMV payment. We charge this to the B2B layer (distributors, content platforms) and not to the creators. Paperchain is a free money app for creators.
What inspired the start of Paperchain?
I was a music producer and studio engineer. Access to content revenue to invest in production, marketing and promotion is essential for a creator to grow their career and inject cash at the right time. I saw that the music industry has become data-driven and the speed of consumption has increased, but the speed of payments has not. So I started looking for ways to use data to speed up payments.
What are your post-COVID office plans?
We’re a fully remote team right now, I’m the only one still in New York. We are hiring and will have a preference for hires in New York, but ultimately we will hire the best person for the job no matter where they are and work on a plan to bring the team back to New York. time.
What milestones do you expect to achieve within six months?
- Onboard 4,000 waitlist creators to charge your card
- Onboard 10,000 creators through the UnitedMasters partnership
- Ongoing close partnerships
- Add support for Web3 Wallet and Web3 Payments
- Launch rewards and spend staking program
- $PAPER Airdrop
Year-end: $10M GMV
What is the start-up advice you have never received?
It can sometimes be an overwhelming lonely journey. I think it was conveyed to me in softer terms. No one has really painted a true picture of reality.
If you could be put in touch with anyone in the New York community, who would it be and why?
Why did you start in New York?
Growing up in Australia, NYC has always defined itself as the place of media, technology and finance. That hasn’t changed. Every type of client, every partner and every potential hire is at your doorstep.
What’s your favorite outdoor restaurant in New York?
Peaches at Bed Stuy. Or Brod’s jerk chicken restaurant down the street near Tompkins in Bed Stuy.