MusicGremlin Inc., a New York-based developer of direct-to-device wireless music technology, says it has completed a Series B venture capital funding round led by media investment bank Allen & Com
NEW YORK -- MusicGremlin Inc., a New York-based developer of direct-to-device wireless music technology, says it has completed a Series B venture capital funding round led by media investment bank Allen & Company LLC. The company says it has raised $5 million thus far.
As part of the announcement, Allen & Co. managing director Richard Fields has joined MusicGremlin's board of directors, joining co-founders Robert Khedouri and Jonathan Axelrod and chairman Morton Hyman.
The new investment will be used for working capital and to expand the company's operations.
Universal Music Group became the first label to reach a digital distribution agreement with MusicGremlin earlier this year.
MusicGremlin's technology allows consumers to purchase, download and share music wirelessly through digital audio players.
The company says it is in discussions with several device manufacturers to include its technology in upcoming WiFi-connected devices. These devices, whose primary focus would be to provide MusicGremlin, will come preloaded with track information available via the online store and feature a direct connection to the service.
Customers can buy music either by the track or purchase a subscription. Subscribers may set their devices to download genre-based playlists on a regular basis to refresh the music stored on the device. Users may also broadcast stored titles for other MusicGremlin customers to see, sample and purchase through the online store. A pricing structure has not been set.
"We believe that MusicGremlin has developed breakthrough technology that will help fuel the digital music revolution," Fields says in a statement. "During the next year, the market will see significant steps forward in the digital audio world; MusicGremlin is poised to play a leading role in the development of this exciting market."