Kobalt, a US-based provider of services to artists in the music industry, added $14m yesterday to a series D round featuring media group Hearst that now totals $89m.
The second tranche was led by Section 32, the venture capital fund formed by Bill Maris, the founder of corporate venturing unit GV. Maris will take a seat on Kobalt’s board of directors in conjunction with the fund’s investment.
Hearst subsidiary Hearst Entertainment led the round’s $75m first tranche, which closed in March this year, participating alongside VC firm Balderton Capital and MSD Capital, which invests on behalf of Michael Dell, the founder of computing equipment maker Dell.
Kobalt uses technology to accelerate the collection of music royalties on behalf of artists, songwriters and publishers. Its client list includes Paul McCartney, Stevie Nicks, Pitbull and Dave Grohl, as well as the estates of Miles Davis and Elvis Presley.
The company helps place music from its roster of artists and songwriters roster in media and advertising, and is also branching out into recording deals, signing up UK band The Kooks to what it called a label services deal earlier this month.
Kobalt had raised a total of approximately $200m as of the first close of the round, which valued the company at $700m pre-money.
GV, the corporate venturing subsidiary of internet and technology conglomerate formerly known as Google Ventures, led a $60m round for Kobalt in 2015 that also featured MSD Capital and its MSDC Management affiliate. Asset manager Cape Capital is also a Kobalt backer.