- Seven granted patents in music theory based Artificial Intelligence
- Studio revenue of $1.3 million annually
- Music catalog valued at $10 million
- Established revenue generating music industry partnerships
- Graduated Launch Tennessee "The TENN" Master Accelerator Nashville
- Total Amount Raised: US $10,000
- Total Round Size: US $1,250,000
- Bridge :
- Minimum Investment: US $5,000 per investor
- : Convertible Note
- US $12,500,000 :
- : US $1,250,000
Music is the very fabric of life. It’s part of everything we experience.
Music is there when we wake up in the morning and turn on the radio or TV. Music is in the films we see, online videos we experience, TV shows we watch, games we play, advertisements we see and hear: it brings together life’s experiences. It’s core to many different types of entertainment; music is in nearly everything.
Our research shows that the music creation industry has grown 38% in the past four years, and is on pace to meet or exceed $15 billion in 2018. Music drives film, TV, games, online video, advertising, stage plays, and news services. More than 500 hours of video are uploaded to YouTube every minute, and the majority of those videos include music. Music streaming services attract hundreds of millions of subscribers; Spotify’s market valuation is $30 billion. J.P. Morgan Cazenove Holdings has asserted that Universal Music Group is worth more than $40 billion. We believe that our technology will become an integral part of the way these companies create music.
Problems we solve:
- Creating music requires trained composers, arrangers, and musicians. Our A.I. platform reduces need for specialized staff.
- Creating music is expensive. The movie, television, game and music entertainment industries spend $15 billion annually on new music creation. Our A.I. platform reduces music production-time cost.
- Creating music is time consuming. Our A.I. platform boosts production with a single click of a button.
- Content owners of smaller music catalogs are being outcompeted in media streaming by higher volume creators. More songs equal more streams. Our A.I. platform is a force multiplier for content creators which can increase their volume output.
- Presently there are no optimal technological solutions for comparative copyright analysis. Our music-theory-based A.I. platform establishes compositional similarities.
Case Study 1: A major TV network requested a song that sounded like the hit “Gangnam Style”. We analyzed that song with The Music Builder, created a similar version, and delivered it in 8 hours, a task that would normally take up to 48 hours.
Case Study 2: Provided comparative copyright analysis of two songs for a law firm using Music Fact. Turned the request around in 72 hours, a task that would take a forensic musicologist 2-4 weeks at an average cost of $10,000.
Case Study 3: World famous heavy metal musician needed two songs composed. The Music Builder analyzed his work, created and delivered two songs in his style within 24 hours.
We started off focusing on karaoke, a $9 billion industry, and in 18 months, our team brought the company to viability with our Karaoke Cloud streaming platform. This base business gave our studios the opportunity to build a foundation in the technologies that drive music production and creation.
In today’s age, we realized an opportunity beyond karaoke: artificial intelligence for music. We recognized the potential for the $15 billion music production industry, and developed an expert A.I. system for music creation.
We are trying to use our technology to disrupt the music industry in the same way CGI disrupted the movie industry.
Our A.I. platform has multiple applications including new music creation and music analysis for education and copyright comparison. We offer access to our platform through SaaS via monthly subscription and an API to third-party developers.
Professionals and consumers use our software plug-ins to:
- empower their creativity.
- maximize profitability through enhanced productivity.
- advance their music knowledge.
- identify potential copyright issues.
- 7 granted patents
- 15K+ songs valued at $10 million
- $1.3 million annual studio revenue
Established revenue generating music industry partnerships (Yamaha, Activision, Peavey)
- Invited to demo at largest music product trade-only show (NAMM) TEK Track stage
- Invited/graduated to an accelerator program
There are multiple products and business models that leverage our studios and artificial intelligence music-theory based platform The Music Builder. It has has been granted seven patents.
The Music Builder’s technological feature set has been in development and iterated over the past 10 years. The platform is now ready for software applications and user interfaces to take advantage of market opportunities with its ability to concretely analyze and compose new music. We have an extensive line of products planned.
Music Fact: Comparative copyright analysis service. Software for the concrete analyzation and comparison of songs.
- Target Customers: Copyright owners and administrators such as music publishers, record labels, performing rights organizations, litigating music copyright attorneys and insurance companies world-wide.
- Revenue model: $2,000 per analysis with summary; $8,000 per analysis with full report; expert witness testimony $500 per hour.
Counterpoint Calculator: Software plugin for major Digital Audio Workstations (DAWs) that automatically writes music.
- Target Customers: amateur and professional musicians, composers, arrangers, and producers for film/TV/games/record labels, ad agencies, app developers, and musical instrument hardware manufacturers worldwide.
- Revenue model: $99 one-time sale of software, with available in-app purchases of expansion packs for additional music genres, celebrity producer style packs like Butta-N-Bizkit, Gordon Williams, Quincy Jones, etc.
While driven by creativity, the music creation process is actually a very technical field. Completing a finished song involves many steps, advanced technology, and much skilled labor.
The process begins with composition - the actual writing of the song, which can take hours, days, or weeks to complete, for even the most talented songwriters. With The Music Builder, we give creators the tools to accelerate this process, delivering composition with the click of a button.
The next task in music creation is arrangement - adding the necessary instruments to a song, and defining what parts they should play. The arrangement process can be tedious and time-consuming: a string arrangement can take up to a week to transpose into sheet music. The Music Builder not only creates the parts for instruments, it even prints the sheet music for each session musician to play with the click of a button.
In today’s recording process, these two steps can cost a studio a large part of the production budget, where time and staff are major operating expenses. The Music Builder reduces these operating costs, adding more profit to the operation’s bottom line.
We believe that The Music Builder software is ahead of its competition in relation to composition and arrangement. The Music Builder does all of these things:
- Writes both classical and pop modulation
- Writes linear parts
- Writes counterpoint
- No retraining to write in new genres
- Merge genres easily
- Writes pedal notes, suspensions, and ostinato
Projection: We estimate the global music production business to be a $15 billion industry, which grew 38% in the last four years, and 16% last year. Our software disrupts the production paradigm by enabling any Music Builder user to create music with the click of a button. What digital photography did to the film photography industry, we want to do to music. We believe that AI is going to disrupt every industry even more than the internet has done. A 1% market penetration represents $150 million dollars in annual sales. We believe a 5-10% market penetration over 5 years is attainable.
What users are saying about The Music Builder:
- “I think it’s phenomenal, I’m amazed…this machine is learning in front of us…” - Gordon "Commissioner Gordon" Williams, 7 Time Grammy Winning Producer and numerous Gold and Platinum albums including Carlos Santana's multi-platinum “Supernatural”, Jimmy Jam and Terry Lewis, Lauryn Hill and 50 Cent
“I think the technology is cutting-edge for purposes of identifying substantial similarity in two pieces of music, in terms of rhythms, beats, and extrinsic similarity.” -Richard C. Wolfe, Wolfe Law, Miami FL, who has used Music Fact Reports in his caseload
*Disclaimer: The above individuals were not compensated in exchange for their testimonials. In addition, their testimonials should not be construed as and/or considered investment advice.
DigiTrax Entertainment, LLC (DTE LLC) hired music visionary Joe Vangieri in 2012 as CEO, who has a passion to always seek new and better ways to make and enjoy music. With a track record of disrupting the world of music, Joe has led companies that have changed the DJ industry with pioneering computer DJ software, that have spearheaded the changes that became the new standard way DJs stay current with new music, and that ran 40 internet radio stations back when a special box was needed to stream music.
Most recently, with DTE, he pioneered the change from karaoke discs and downloads to a streaming platform, which monetized a catalog of 12,000 hit sound-alike songs. This business unit maintains a keep-and-grow cycle, generating a base revenue for continued operations.
In December of 2015, a critical introduction was made to the team: Marcus Matusiak, founder of Exomens LTD and creator of The Music Builder AI software. As a software developer for a gaming company in years past, Marcus had been impressed with the tools that the company’s graphic artists used to help make their creative vision a reality. Those powerful tools allowed artists to take simple skills, like sketching a cartoon, to the full-blown CGI spectacle of a multi-million dollar game or movie, where their drawings became like real life.
However, as a music scholar and performer, he had asked himself why there were powerful creative tools for graphic artists, but not for composers and songwriters. Marcus pictured a way that music creators could start with a simple set of notes, then use a program to expand from there to a whole song. He began a ten-year quest to even this playing field.
When Marcus was introduced to DigiTrax and demonstrated his artificial intelligence software, Joe and his team of music industry experts recognized how it could transform the music-production landscape. While the team was confident their karaoke products could grow to a $40 million a year enterprise, they also believed in the multi-billion dollar potential in The Music Builder A.I. software.
Under Joe’s leadership, DigiTrax acquired Exomens LTD UK, brought Marcus onboard, and began refining and implementing their seven granted patents into a series of marketable products. Driven by the power of the idea that artificial intelligence could empower anyone to become a songwriter, the team is forging ahead with plans to transform the way music is created and enjoyed.
Frequently Asked Questions
When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by DigiTrax Entertainment. Once DigiTrax Entertainment accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to DigiTrax Entertainment in exchange for your securities. At that point, you will be a proud owner in DigiTrax Entertainment.
Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.
A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.
To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.
To make an investment, you will need the following information readily available:
- Personal information such as your current address and phone number
- Employment and employer information
- Net worth and income information
- Social Security Number or government-issued identification
- ABA bank routing number and checking account number (typically found on a personal check or bank statement)
Because DigiTrax Entertainment is offering its securities under Rule 506(c) of Regulation D, your status as an Accredited Investor will also need to be verified and you will be asked to provide documentation supporting your income, net worth, revenue, or net assets or a letter from a qualified advisor such as a Registered Investment Advisor, Registered Broker Dealer, Lawyer, or CPA.
Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your securities have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.
Currently there is no market or liquidity for these securities. Right now DigiTrax Entertainment does not plan to list these securities on a national exchange or another secondary market. At some point DigiTrax Entertainment may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when DigiTrax Entertainment either lists their securities on an exchange, is acquired, or goes bankrupt.
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This is DigiTrax Entertainment's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity.
This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in DigiTrax Entertainment’s profile.