Member Spotlight: beatBread launches Deal Comparison Tool

beatBread launched its Deal Comparison Tool to enable independent artists and labels to compare and fully understand their funding offers, avoid unexpected traps, and make better funding choices.

beatBread, a leader in funding for independent musicians and labels, has launched its Deal Comparison Tool to enable artists and labels to compare and fully understand their funding offers, avoid unexpected traps, and make better funding choices.

The beatBread Deal Comparison Tool enables independent artists and labels to compare offers from distributors, major labels, and other funding sources side-by-side for the first time. Clear like-for-like comparisons allow users to understand trade-offs between upfront cash and long- term costs. Artists and labels can visualize annual cash flows and costs and compare the relative strengths of each deal, depending on how music performs in the future.

These insights empower users to choose the funding option that best aligns with their goals and risk tolerance, regardless of whether that funding is sourced from beatBread, one of its Funding Network partners, or even a competitor. In a beta test, that included a wide array of artists and labels with original offers ranging from $100,000 to over $100M, around 60% of artists and label owners chose a deal other than the one they had before using The Deal Comparison Tool. 

“It is impossible to make a smart decision without comparing your options and understanding your choices,” said Peter Sinclair, beatBread CEO. “Even the most sophisticated executives can be deceived by 'headline terms' in a deal. The Deal Comparison Tool cuts through the fog and lets labels and artists truly understand how a deal is likely to play out in the real world.

Summary terms aren’t enough to make a good decision, you have to understand cash timing, total cost, the true length of your commitments, and how these 'real terms' vary based on future performance. After using The Deal Comparison Tool, some people pick a beatBread deal, but just as often, they choose an offer from one of our partners or even a competitor. And that’s okay. Our goal is to be the place where smart funding choices are made, whether we fund the deal or not.”

It has become standard industry practice to offer headline terms (nominal term length, total deal value) that simply do not reflect how a deal is likely to play out in the real world. In the worst cases, beatBread’s beta test showed that some independent labels would most likely end up forced into a distress sale after a few years had they taken the seemingly best distribution or label JV offer in front of them.

“When I came to beatBread, I had what I thought were two quite attractive distribution offers,” said Dan Englander, Founder of independent label KingUnderground. “After seeing the output of beatBread’s Deal Comparison Tool, I realised that there were several scenarios where I could have ended up strapped for cash. Although I didn’t take beatBread’s offer in the end, I took funding from one of their Network Partners. I’m very glad I found beatBread when I did.”

beatBread’s mission is to empower artists, independent labels, distributors and songwriters with more choices, and better funding. Since its launch in 2020, beatBread has funded over 1,300 clients on six continents, with funding amounts ranging from $1,000 to over $10 million. beatBread provides funding on existing catalog as well as new and unreleased music, providing growth capital for clients across the music industry.

beatBread’s funding platform is open and transparent, offering the ability to customize term length, recoupment rates and other terms, while retaining control over distribution and marketing partners. Some clients may choose to sell their catalogs on the platform, but all are presented with funding options that enable them to retain ownership of their music. Qualifying artists and labels will receive offers from multiple distribution and finance companies through beatBread’s Funding Network, and can leverage beatBread’s Comparison Tool™ to compare offers and make smart funding decisions.

For more information about the Deal Comparison Tool, visit www.beatbread.com/compare