Jonathan Strauss
Hollywood, Calif.-based Create Music Group has announced the completion of a $450 million funding round consisting of new equity and debt capital, valuing the company at $2.2 billion.
The company was founded in 2015 as CreateTV by the trio of CEO Jonathan Strauss, Chief Operating Officer Alexandre Williams and Chief Business Officer Wayne Hampton. Create today is a digitally native music, media and technology platform. The three still hold majority ownership of Create, with institutional investors Ares Management, New York-based 2 Mile and Flexpoint Ford holding minority stakes. Music industry veteran Charles Goldstuck is also an investor.
The financing round also included expanded bank group support, with Truist Securities and Banc of California serving as joint lead arrangers.
“This capital will not only accelerate our roadmap, expanding our footprint in media, IP and technology, but also empower our partners to build generational businesses that redefine culture and value creation across the global entertainment ecosystem,” said Create co-founder and CEO Jonathan Strauss, adding that the company is opportunistically poised as the “future of media, technology, and creative ownership is being rewritten.”
Create’s portfolio includes broke., a marketing-driven record label; Monstercat, an influential independent electronic music label with a global fan base; !K7 Music, a Berlin-based group with deep cultural heritage; Cr2 Records, a U.K. dance music platform; and Mau5trap, founded by Deadmau5.
The funding deal follows Create’s strategic $300 million investment in Canada’s Nettwerk Music Group, a global independent record label that builds a following for artists within fan-connected communities. Nettwerk’s artist networks include Vacations, Sarah McLachlan, SYML, Paris Paloma, Passenger and Old Crow Medicine Show.
Create says it has invested more than $500 million across acquisitions, advances and other growth initiatives during the past year, as it seeks to position itself as a scaled co-owner and operator of enduring music businesses with global reach.
“The music industry is as dynamic as it has ever been, with rapid growth in new consumption channels and means of creation, which is creating vast opportunities for agile, digital-first companies to reshape the status quo. In that context, this fundraise is an exciting milestone for Create and the product of a lot of hard work from our entire team over many years,” said Create CFO Will Smith.
The newly raised capital will support continued acquisitions, strategic investments, technology development and global expansion, reinforcing Create’s long-term commitment to building the industry-defining platform for the world’s leading music businesses and entrepreneurs, he added.