Audio content production studio Audio Up has closed its Series C funding round at what it says is a $150 million pre-money valuation.
The value of the latest round was ”just shy” of $10 million the company has confirmed to MBW, bringing its total raised to date to $20 million.
Audio Up says in a press release that it plans to use the proceeds from the round to “continue amplifying” the music side of its business, with the latest fundraise arriving nine months after it struck a joint venture with Universal Music Publishing Group (UMPG).
That agreement with UMG has focused on signing songwriters to create music for Audio Up’s original podcast programs. Additionally, UMPG signed an exclusive, global publishing agreement with songwriter, producer and Audio Up CEO, “Jingle Jared” Gutstadt.
Launched in 2020, Audio Up claims to be “paving the way for the next frontier for how consumers discover new music”.
In order to continue building its music vertical, the company says that proceeds from the Series C raise will also fund the creation of new copyrights, which it says will “become the backbone of their audio original slate”.
The company says it has already collaborated with the likes of NAS, Machine Gun Kelley, 24kgoldn, iann dior, Maejor, Nile Rogers, Nessa Barrett, Travis Barker, Scarlett Burke, Trippie Redd and Poo Bear.
The venture will continue to be led by Gutstadt, who also has 25 ASCAP award wins, two Emmy Award nominees, and multiple Clio and Cannes Lion Awards to his name.
Another portion of the proceeds will be used for IP acquisitions to grow Audio Up’s output which has generated 40+ million podcast downloads and nearly 100 million music streams across 30+ podcasts released in the past two years alone.
Audio Up has previously attracted investment from prominent industry figures like The Weeknd, Wassim “Sal” Slaiby, Larry Rudolph and media entities including SiriusXM, MGM-Amazon, Primary Wave, and Reservoir Media.
Additional names from series A and B funds included Entertainment One’s CEO Darren Throop, producer Will Ward, and Draft FCB founder Howard Draft.
The list of music city collaborations alone includes Miranda Lambert, Florida Georgia Line’s Brian Kelley, Breland, Willie Jones, Scarlett Burke and Elle King, with many more to be announced in 2023.
Among the fund raise’s top contributors includes longtime Audio Up investor Ben Lurie who will be joining the company’s board.
“Jared is an incredible visionary in the media space and I’m betting on his leadership,” Lurie said in a recent statement.
Among Audio Up’s objectives in 2023 will be to strengthen its vertical integration strategy by building new studios and post-production facilities in Nashville; complementing the two outposts they already have in Los Angeles, including its Brentwood, CA recording space, Audio Chateau.
The Nashville location (Audio Chateau South) will be an outpost for podcast and music creators; housing guests and collaborators of the Audio Up world”. according to the press release.
“We have achieved an incredible amount in a very short time frame,” said Audio Up founder and CEO Jared Gutstadt.
“Having our business organized around a small group of elite media companies and entertainment luminaries allows us to grow in a way few can match.”
“In success we hope to be at the epicenter of hit records, television shows, films, tours, and brand experiences of the future. Discovery has become one of the biggest challenges for all aspects of the entertainment space. This is our challenge and we believe we have a unique angle into discovery. Come for the podcast, stay for the music.”
Jared Gutstadt, Audio Up
Added Gutstadt: “Our podcast strategy goes beyond the CPM model synonymous with Podcast 1.0 success. Audio Up has become a true gateway for content development and the testing of new IP.
“Along the way, our podcasts are becoming a new discovery platform for music, and is hitting a blind spot being missed in this inherently audio centric media. By discovering new recording artists and writers which we plug into our content and into the world of DSPs, we are becoming a go to IP source for major labels and studios alike.
“In success we hope to be at the epicenter of hit records, television shows, films, tours, and brand experiences of the future. Discovery has become one of the biggest challenges for all aspects of the entertainment space. This is our challenge and we believe we have a unique angle into discovery. Come for the podcast, stay for the music.
“The next phase will allow us to push the boundaries further and finally have our Encanto or Old Town Road Moment utilizing the podcast as the fire starter.”
Continued Gutstadt: “Our boots on the ground approach allows us to roll up our sleeves with all of our collaborators. This is not a business where you can have distance and agency. You have to get in the trenches with all of your creators, from Stephen King to Machine Gun Kelly and beyond.
“We create things every single day, and the amount of buying lanes has expanded for us significantly in the past few years. We want to meet this moment with the funding to allow us to create as much as possible. That’s the mission for 2023.”Music Business Worldwide