Beatport, the digital download platform for DJs and the electronic music community, has secured a growth investment from Los Angeles-based investment firm Square Nine Capital. The sum of the investment is undisclosed.
A press release notes that “the investment refinances an existing credit facility,” effectively providing Beatport with the funds to pay off old loans while also providing them with new capital to, as the press release continues, “support Beatport’s strategic priorities and further strengthen its position at the center of the global electronic music ecosystem.”
The release adds that this new funding will also provide Beatport “with additional flexibility to invest across its platform, products and broader ecosystem as the company expands its offerings for music creators around the world.”
The announcement tracks with previous Beatport news from April, when the company’s then-departing CEO Robb McDaniels told Billboard that the company plans to continue its expansion into the live events sector.
“Obviously, Beatport has been a digital company and the brand is extraordinarily well-known and the audience is massive,” McDaniels said at the time. “We’ve slowly but surely started seeing how that translates into IRL events. Because we’re a relatively small company, and the majority of our income comes from digital sales, we’ve been very careful about how much we extend ourselves into the physical realm. But starting in the pandemic with the online events we were doing, we’ve gotten more comfortable — from small pop-ups to larger stage takeovers and festivals. It’s all gone amazingly well, and the brand translates really well, so we’re going to continue leaning into that.”
Beatport’s search for a growth investor is also well-established, with the company years ago retaining an investment bank to explore strategic options for the company, including a potential sale by the company’s majority owner Axar Capital. No such sale was completed.
“We have tremendous respect for the team at Axar and what they have built in partnership with Beatport’s management team,” Square Nine leader Griffin Coakley says in a statement. “Our strategy is centered on partnering with high-quality companies backed by thoughtful sponsors, and we are excited to support Beatport as it continues to invest in its platform and build on its leadership position in electronic music.”
“We are excited to welcome Square Nine as a new capital partner to Beatport,” adds Matt Gralen, who rose to the CEO position this past spring. “Square Nine shares our conviction in Beatport’s leading position and strategic role, and we look forward to working together as we continue to invest in our platform and expand the ways we serve the global electronic music community.”
