News

Stem dramatically expands its artist advance product, first launched in 2020, fundamentally changing artists’ access to liquidity and the ways both artists and labels can invest in their growth.

(July 11, 2023) – Today, Stem announces its partnership with Victory Park Capital (“VPC”), a global alternative investment firm specializing in private credit, to expand its artist advance product. Building upon the success of the product to-date, the credit facility from VPC will enable Stem to provide $250 million to artists’ advance checks, and as a result, longer-term strategic and financial planning options for artists as they progress in their careers. Along with advances for yet-to-be-released music, artists will also have the option to take advances against previously released albums and songs, presenting a range of opportunities to support their growth.

Since its launch in 2020, Stem’s advance product has proven to be an instrumental resource for artists in various stages to develop their careers. For mature artists looking to leverage their catalogs financially, Stem provides market rate, near-term liquidity with flexible repayment models. For artists who are leaving the major label system and are unable to bring their existing work to a new partner, Stem provides advances against future projects without taking any ownership, allowing for more flexibility and greater financial freedom. Stem’s advance product has also had a profound impact on the careers of independent artists on the rise, providing liquidity for new projects by offering advances against previously released work or new work, while allowing those artists to retain full ownership.

“Stem has demonstrated itself to be a premiere destination for artists, whether emerging or established, to grow their careers,” says Milana Lewis, CEO of Stem. “This funding from VPC enables us to solve two major gaps we see artists consistently facing. The first gap is access to capital for those who are not quite yet ready to sell their catalog but want to leverage it for cash. The second is investment in future music for those who are exiting the major label system, have their catalog currently committed, but have the opportunity to become independent for future releases. Solving both of these pain points in a way where the client can set their own terms is incredibly exciting.”

“Enabling access to capital is a major focal point for us, and we are excited to be partnering with Stem to help meet the financing needs of artists,” said Gordon Watson, Partner at Victory Park Capital. “We share Milana and the rest of the Stem team’s commitment to flexibility for borrowers, and we look forward to supporting the continued growth and success of the advance product.”

Stem is proud to have supported numerous artists with their career growth via the advance product. Examples to-date include:

• Brooklyn-born artist Justine Skye has utilized Stem’s advances to seamlessly transition from her early career as a major label artist to an independent powerhouse. Within 12 months, Justine and her team have taken out five advances, with the most-recent loan taken being a 6x increase from the first in that period, and all have served a distinct purpose for the advancement of her Her first early advance was allocated entirely toward her first independent release Space & Time, encompassing the project’s creative assets, music videos and her collaboration with Timbaland on the project. The success of the project led to a bigger pool of accessible capital for her two subsequent advances, which were used to devote marketing resources to leverage a song from her label catalog and seize on the viral success of her 2014 single “Collide,” which at its peak was the #1 song on TikTok and garnered 1.6 million daily streams on Spotify between the original and sped up versions nine years after the song’s initial release.
• As an independent artist, Brent Faiyaz and his team at Colture have found major success utilizing Stem’s advances to properly invest in his rising stardom, taking eight advances over the past three years. Those advances helped fund the creation and release of his latest album Wasteland, released in July 2022. The album debuted at #2 on the Billboard 100, and became his first top-ten release on the main albums chart and the largest first-week sales of his career. Wasteland has also grown to be one of the best-performing albums in recent years for a fully independent artist. It was certified Gold by the RIAA in less than six months time and has accrued over 670 million global streams, with two of the lead singles (“Dead Man Walking” and “Gravity”) also being certified Platinum by the RIAA since its release.
• Similarly bolstering their release through a Stem advance, Tampa-based band Set It Off leveraged a six figure advance toward a SIRIUSXM Radio Campaign and TikTok marketing, resulting in their single “Punching Bag” becoming the #1 Most Added song on the Rock radio charts.

About Stem

Stem provides a financial platform for creators, artists, and their teams to run their own businesses with clarity and long-term career sustainability. Launched in 2015 by Co-Founder and C.E.O. Milana Rabkin Lewis, its intuitive interface enables clients to track, divide, disperse, and even donate revenue to various recipients, designating percentages and simplified splits with the utmost fairness and accountability in real-time. Recognizing the innovation and lucidity of this ecosystem, Fast Company hailed STEM among its “Most Innovative Companies” in 2021, while builtin named it one of the “Best Places To Work” in 2020 and 2021.

About Victory Park Capital

Victory Park Capital Advisors, LLC is an SEC-registered, established credit manager. The Firm was founded in 2007 and is headquartered in Chicago, Illinois, with additional resources in New York, Los Angeles, San Francisco, and London. VPC provides custom financing solutions across the private capital spectrum, focusing on companies with strong corporate governance and a compelling growth trajectory. VPC invests in emerging and established businesses across various industries worldwide. For more information, please visit www.victoryparkcapital.com.

Media Contacts

For Stem press inquiries contact Nick or Kevin at Orienteer: nick@orienteer.us / kevin@orienteer.us

For Victory Park Capital press inquiries contact Jordan Niezelski at Edelman Smithfield: jordan.niezelski@edelmansmithfield.com