Kickstarter saw its third largest campaign ever, one that even surpassed the Oculus Rift. PonoMusic, a high resolution digital music market backed by music legend Neil Young, raised $6.2 million on Kickstarter with the support of over 18,000 backers.
However, the ride is far from over for PonoMusic, as they’ve announced the launch of an equity crowdfunding campaign exclusively on Crowdfunder.com. Accredited investors can invest as little as $5,000 and become an equity owner in the business alongside Young and other music industry stars.
The PonoMusic team, and of course Mr. Young, are in effect democratizing the financing process by giving their Kickstarter backers the opportunity to now invest and become an owner in the company.
“Oculus Rift previously raised over $2 million via Kickstarter, then sold to Facebook for $2 billion,” says the PonoMusic team. “If their Kickstarter backers had been given the opportunity to invest through equity crowdfunding, they would likely have seen a significant return on their investment, but they didn’t which stirred quite a backlash at the time.”
The proof of concept came within the first 9 hours of the new Crowdfunder campaign being started. They generated over $1.2 million in investment commitments; the average commitment being $9,022. And due to the overwhelming demand, PonoMusic has raised the desired funding amount from $2.5 million to $4 million on their new campaign.
“Neil and his team get it, which is why they’re going the route today’s most successful startups follow: first validating their business through presales of their product on Kickstarter, then raising investment via our leading equity crowdfunding platform and rapidly growing a base of institutional and individual accredited investors,” says Chance Barnett, CEO of Crowdfunder.com.
In Hawaiian, Pono means righteous. For Neil Young and the rest of the PonoMusic team, that translates into honoring the artists’ intention. This platform is just as much about reviving the magic that has been squeezed out of digital music as it is about giving you top quality tunes.
At the time of this writing, PonoMusic has raised $3,309,000 of its $4 million goal.