(l to r) Create Music Group co-founders Alexandre Williams (COO), Jonathan Strauss (CEO), and Wayne Hampton (chief business development officer). Photo Credit: Rich Polk
Create Music Group has officially scored $165 million in capital from Flexpoint Ford and others as part of its “first major investment.”
The nearly decade-old music company, which operates as a label, publisher, distributor, IP investor, and more, formally disclosed the Flexpoint-led round today. According to the Label Engine and Flighthouse operator Create, Hitco founder Charles Goldstuck also participated.
As described by the funding recipient, the “significant minority investment” will lay the groundwork for continued expansion (and buyout) initiatives as well as service improvements for its global client base. Solely via the mentioned Label Engine, that includes in excess of 75,000 artists and 5,000 labels attributable to the overarching Create Music Group, which has north of 400 employees worldwide.
Elaborating on the points, Create CEO Jonathan Strauss in a statement touted the development as “a significant milestone” for his Hollywood-based business.
“Our partnership with Flexpoint marks a significant milestone for our company and their expertise will be instrumental as we continue to scale our operations and find new ways to serve our client’s evolving needs,” communicated Strauss.
“Flexpoint’s investment will also support our ambitious acquisition strategy which will allow us to expand our market presence and create the scale to continue to provide unparalleled services to our clients and partners,” concluded the exec, whose company last year bought Music for Pets.
Meanwhile, in comments of his own, Flexpoint managing director Mike Morris, who previously held the same role at Northleaf Capital Partners, expressed the belief that Create has “set a new standard for the industry.”
“We believe Jonathan and his team have set a new standard for the industry, challenging traditional music companies to rethink their strategies,” indicated Morris. “By acting as a media company that offers comprehensive support to artists, including distribution, marketing, financial solutions and audience engagement, Create Music Group has created a blueprint for the future of music.”
Looking to the bigger picture, Create’s $165 million raise has arrived amid a well-documented falloff in industry funding during 2024’s opening half. As charted in detail by DMN Pro’s Music Industry Funding Tracker, the volume and the cumulative value of raises have slipped dramatically when compared to 2023.
(The falloff would be far more pronounced if not for the presence of a few sizable rounds like Create’s, Gamma’s $100 million raise, and the $1 billion pulled down by Iconic Artists Group, for instance.)
Notwithstanding this material slowdown, Australian music licensing startup Melodie last month obtained about $660,000 in bridge funding ahead of a planned strategic raise next year.
