# Overview - “Angel List meets Epidemics Sounds - for crypto”

Goal: Bring an elegant and smooth one-stop-shop platform for independent musicians to get exposure and financial support from day 1 the same way startups can.

• Independent artists are the same as startups. Only 1%-5% will be super successful (in music 1%-8%). But unlike startups, these investments are only available to a small group of people for reasons unknown.

• Content creators are best to help music spread. A tool utilized mostly by the same small group of people in the music industry.

• Record labels are the same as VC’s back in the early days of tech - a small closed circle of organizations that work in mysterious ways, that few understand. There is no leverage which ends up with artists losing 50-90% of everything.

• Music is a $23.1B market and labels are taking almost all of it while simultaneously not letting in new investors. Meanwhile, in 2022 you can invest in literally the biggest tech ETF in seconds on your phone.

• Artists most of the time, unfortunately, are not always business-minded and are treated as such. They are not shown the full picture.

Opportunity: Democratize the music industry by building a platform that connects independent musicians to content creators and rewards them for supporting artists, while doing so in their native habitat.

🎧 Klezma = Just that. A platform that allows anyone to invest in the future of music and the next big artist, while rewarding users for using the music on Tiktok, Instagram, Youtube, etc, with Dynamic NFTs.

### Conclusion: win-win :).

✅Creators get rewarded for using royalty-free music while getting to share in the success of the artist.

✅ Creators get clout and the social status of being “the first”.

✅ Creators get to enjoy life-changing experiences with their favorite artist for being their first supporters.

✅ Artist build deeper relationships and loyalty with their fans

✅Artists stay independent, get noticed, get paid instantly, and get insights on when, where, and how their music is spreading. Artists finally get leverage and options for their careers.

So why do you think this is going to work?

Musicians are the startups that always lose.

• With 3.6B users across the creator economy, it is virtually impossible to get noticed as a new musician.

• Because no exposure, no pay - so they can’t even run ads for themselves.

• In the 1-in-a-million chance an artist gets noticed, a label will take 50%-90% of everything he/she makes.

• During that time, there is very limited transparency, so artists really don’t know where they stand in the market in terms data and pay.

• Currently, if you want to make it, you have no choice but to go to a label and as such, begins the black hole of no return.

• Bottom line: The only way to avoid all this is to stay independent.

Content Creators are undervalued and underpaid

• Music takes way too much time and money from content creators
• Can take weeks to find songs and permission to use them (If they don’t have permission content is flagged and eventually deleted/banned - Example: Twitch)
• Creators pay 100’s, if not 1000’s of dollars a year for license-free music
• ^ Which is super expensive considering 99% of creators do not make enough to live (less than 1% have 1M subs, which gets roughly $60k/year)
• Micro-creators do not fully capitalize on their influence

Okay, but how do we know the market is ready? Why now?

• The independent artist market is growing at an exponential rate, and faster than the record label. (Source: Midia)

• As the creator economy grows more and more - many forget that independent artists are a part of it, and are constantly looking for new ways to empower themselves and they are gaining traction (as shown above)

• Gen-z and Millennials run the internet with Gen-Z being the future, and have alot of influence of how things go viral, making the following stats interesting:

  • 55% of Gen Z is most influenced by a recommendation from a friend or peer when discovering a new brand.

  • 72% of Gen Z and Millennials follow influencers, with Gen-Z more likely to follow many.

  • Influencers hold more sway than celebrities for Gen-Z consumers (36% vs. 24%).

  • Today, a whopping 36% (almost 3x more than the second-largest category) of Genz users find new music via social media (Source: Spotify), with 42% of Gen-Z saying they heard a song on social media before streaming it.

• It’s clear how that in the case of Gen-Z Word of Mouth Marketing is the strongest form of marketing today. Example: Andrew Tate

• Klezma is taking these stats head-on by creating a marketplace that harnesses the power of the creator economy to increase the success of independent musicians, by creating a solution where everyone truly wins.

Current Investors

• Ali Abdaal (+3M subscribers on Youtube, +640k followers on Tiktok, Instagram, and Twitter)
• Sandeep Nailwal (Co-founder & CEO of Polygon)

Sounds interesting but what makes your approach different than others?

Great question.

Besides truly solving the 2 biggest pains of independent musicians (getting noticed and paid - by connecting them to content creators), we are working past the hype that is NFTs today.

See our Preseed Memo for more