New York-headquartered music AI technology startup Hook, which is developing tech to enable fans to legally remix popular music for social media use, announced today that it has secured additional investment, bringing its total seed funding round to $3.5 million.
The announcement came nearly five months after Hook disclosed that it had raised $3 million in a round led by Waverley Capital, co-founded by former Warner Music Group CEO and Chairman Edgar Bronfman Jr., and Steve Cohen’s Point72 Ventures. Other investors include international management and entertainment company Three Six Zero and Japanese entertainment brand Avex
On Wednesday (March 6), the company announced it had reopened the funding round to bring in some new investors, including Natalie Massenet and Nick Brown’s Imaginary Ventures and a group of strategic music and social media industry investors and advisors.
Imaginary Ventures’ portfolio includes businesses across the consumer landscape, with early investments in Kim Kardashian’s SKIMS, Daily Harvest, Glossier, and more.
Hook also unveiled the initial members of its advisory board, featuring figures from across the music, social media, and technology industries. This includes DJ and producer KSHMR; SNAP Head of Music Partnerships Manny Adler; venture capitalist Abe Burns; Downtown Music Holdings Founder & Chairman Justin Kalifowitz; Hundred Days Founder & Co-president Ben Klein; Reed Smith LLP Managing Partner Gregor Pryor, and others.
“Hook is working with artists, labels and rights holders to help them capture the full value of UGC and fan expression on social media. That’s just one of the reasons the investors have been so enthusiastic about us.”
Gaurav Sharma, Hook
Hook says its platform, currently in closed private beta, addresses the challenge of artist compensation on social media by enabling fans to engage with licensed music while ensuring artists and rights holders receive their fair share.
The startup’s founder and CEO, Gaurav Sharma, boasts a track record in the music industry, having previously served as COO of JioSaavn, one of India’s leading music streaming platforms. He emphasizes the importance of addressing artist compensation and sees Hook as a solution, calling artist compensation on social media “one of the most pressing issues in the industry.”
“Hook is working with artists, labels and rights holders to help them capture the full value of UGC and fan expression on social media. That’s just one of the reasons the investors have been so enthusiastic about us,” Sharma said.
Commenting on the investment from Imaginary Ventures, Sharma said, “Natalie Massenet is a proven, authentic visionary who understands how to execute, and having her and her team at Imaginary supporting us will be our superpower.”
“We believe that Gaurav [Sharma] and his team are uniquely placed to understand the evolution of music consumption and creation and are building a business model whose time has come.”
Natalie Massenet, Imaginary Ventures
He added: “We are thrilled that Hook is one of Imaginary Ventures’ first music investments and look forward to tapping into her strategic insight, which perfectly complements the deep music experience of the members of our advisory board.”
“Hook is placed at the intersection of several exciting developments; the creator economy, social media as a music discovery tool, and generative AI,” said Massenet, who previously founded and ran fashion e-commerce company Net-a-Porter.
“We believe that Gaurav and his team are uniquely placed to understand the evolution of music consumption and creation and are building a business model whose time has come.”
Musician, producer, and DJ KSHMR, who is among the artists advising Hook, added: “The era of viral homemade remixes is here and Hook is the first platform to recognize and make sense of it. It’s also the first app I’ve seen in years that will actually get average Joes creating music — anybody with a thumb can do it.”
Music Business Worldwide