Berlin-based technology startup FUEL, described as the ‘Shopify for NFTs’, has secured investment from German rappers CRO and Bausa as well as the latter’s record label Two Sides.
The news follows FUEL’s €1.5 million pre-seed financing round in March 2022 to develop its platform, which enables musicians and creators to build their own custom-branded NFT shop for their collection without any technical knowledge.
With the new investors, FUEL has not only secured further funds, but direct access to the music and entertainment scene. CRO has four No.1 singles to his name and is currently listened to by nearly five million users on Spotify per month.
Two Sides, founded in 2017, is run by Lucas Teuchner alongside rapper Bausa, who also has a No.1 behind him. Some of Germany’s most successful musicians, including Apache207, Loredana, Zuna, Azet and Miksu/Macloud, are currently signed to Bausa’s and Teuchner’s label.
With over 26m Spotify streams per month, Two Sides is one of the most successful German independent labels.
Well-known investors already involved include Gumtree co-founder Michael Pennington, Indeed founder Paul Forster and Bitstamp CTO David Osojnik, as well as the US and English venture capital funds Fintech Collective, Seedcamp and Notion Capital.
FUEL co-founders Csongor Barabasi and Thanh Binh Tran said: “NFTs are revolutionising the music, arts and entertainment industries, delivering real added value and strengthening the connection between artists and their fans.
“In the music industry, for example, this could be presale rights for concert tickets or backstage access.”
CRO said: “I’ve been looking at the NFT sector for a while and I’m convinced of its potential, not only for the music industry, but also for all other areas of the creator economy. With FUEL, I have now found not only a team but also a model that has excited me so much that I also want to be on board as an investor.”
Label boss Bausa adds: “It is important that the music industry evolves. With NFTs and FUEL’s model, we have the chance to make that happen.”