Music Cow will form a 40 billion won sound source IP (Intellectual Property) fund with Shinhan Investment & Securities to secure sound sources.
Music Cow Invest, a financial business corporation of Music Cow, announced on the 8th that it has signed a business agreement with Shinhan Investment & Securities for the acquisition of sound source IP and strategic partnership. The two companies decided to secure high-quality sound source IP by forming the first sound source IP fund worth about 40 billion won. The secured IP will be issued as a piece investment product through Music Cow in the future and distributed on the piece investment over-the-counter trading platform.
Shinhan Investment & Securities will form a sound source IP fund as a project fund GP (business execution member), and Music Cow is responsible for selecting commercially available sound source IP based on sound source valuation and superior IP sourcing capabilities. The goal is to complete the purchase of IP for sound sources in the second half of this year and to complete the issuance of fragmented investment products before the opening of the exchange. The two companies plan to establish a circular structure that leads from the acquisition of sound source IP in the future to reinvestment through issuance, distribution, and recovery of fragmented investment products. The collaboration model with sound source producers, platforms, and copyright holders will also be expanded step by step. In addition, based on the performance of the first fund, it plans to expand the investment target and establish a long-term roadmap for the continuity fund that has expanded to more than 100 billion won.
"We expect that the combination of Music Cow's sound source IP sourcing and evaluation capabilities and Shinhan Investment & Securities' IB capabilities will create synergy in the early settlement of the sculpture investment and STO ecosystem," a Music Cow official said. "I think this sound source IP acquisition project will serve as an opportunity to prove the natural function of music investment to revitalize the creative ecosystem by supplying healthy capital to the cultural industry."
