Create Music Group Raises $450M
Create Music Group, a major music rights and distribution company, has closed a $450 million funding round. This influx of capital is expected to accelerate their expansion and technology investments, with implications for how independent artists and labels monetize and distribute music globally.
This latest funding round more than doubles Create Music Group's valuation to $2.2 billion, a significant jump from its $1 billion valuation less than two years ago. The round was supported by institutional investors Ares Management, 2 Mile, and returning investor Flexpoint Ford, with the company’s founders retaining majority ownership. Over the last year, the company has deployed over $500 million towards acquisitions and other growth initiatives. This includes the acquisition of electronic label Monstercat, Berlin-based !K7 Music, UK dance music company Cr2 Records, and the catalog of Deadmau5. A significant portion of the new capital is earmarked for further strategic investments and acquisitions, building on their recent $300 million investment in the independent label Nettwerk Music Group. Nettwerk is home to a diverse roster of artists including Sarah McLachlan, Passenger, and Old Crow Medicine Show. Founded in 2015 by Jonathan Strauss and Alexandre Williams, the company initially focused on identifying and collecting unclaimed YouTube revenue for artists. This data-centric approach remains core to their strategy, now monetizing billions of streams monthly across multiple platforms. To sharpen its technological edge, the company recently appointed Mitchell Shymansky, formerly of Universal Music Group, as its Chief Data & Technology Officer. His focus will be on leveraging AI and scalable data systems to improve artist outcomes and operational efficiency. Create Music Group's portfolio also includes the Gen Z-focused digital marketing agency Flighthouse and the distribution platform Label Engine, which it acquired in 2016. The company has also been involved in major releases, including 6ix9ine and Nicki Minaj's "Trollz," which became their first Billboard Hot 100 number one. The company's rapid growth landed it at the top of Inc. Magazine's 2020 list of the fastest-growing private companies in California. Its clients have included a range of artists from Jennifer Lopez and Marshmello to Migos. This funding arrives amidst legal challenges, including a copyright lawsuit filed by Artist Publishing Group (APG) in January 2025, alleging infringement and improper ownership claims.
