PledgeMusic Reorganizes After Late Payment Problems
PledgeMusic is reorganizing its executive team after months of payment problems. As we reported last week, CEO Dominic Pandiscia has stepped down. Now company executives are taking on new roles in an effort to turnaround the popular music crowdfunding site.
Co-Founder Malcolm Dunbar has been elevated to Global President and COO, building on the success of the UK and European division. Co-Founder Jayce Varden has returned and Scott Graves has re-joined as President of the North American territory. Members of the finance team were replaced in recent months.
PledgeMusic is also working with Nashville-based Lyric Financial to expand working capital and improve payable processing.
Beginning in the Spring, PledgeMusic fell behind on payments due many artists and labels. In June, the company blamed rapid growth "combined with the payment processing changes." But last month, several artists shared new stories of non-payment 45 days and more after their campaigns had finished. A source also told Hypebot that several major and large independent labels who ran pre-sale campaigns on PledgeMusic are also weeks behind in receiving large payments.
In an effort to repair its relationship with artists and labels, PledgeMusic will be launching a more user-friendly backend and additional tools to manage campaigns, including an upgraded payment system, real time analysis of campaigns and greater transparency. The rollout begins in the upcoming weeks.
The new financial team has been put in place under the leadership of Richard Vinchesi, a partner at Sword, Rowe & Company, one of PledgeMusic’s larger investors. New growth initiatives on the drawing board include further development of the D-to-C platform, a Vinyl Store and new advertising functionality scheduled for early 2019.
“I have been a fan of PledgeMusic since its inception. PledgeMusic plays a fundamental role in the global music industry. Not only do they provide a critical funding tool for artists, but also, a home for over three million music fans to engage with their favorite artists and to discover new artists. It is this dual role that makes PledgeMusic such a key tool for all artists, big or small. I am excited about the moves the company is making to reorganize in order to better serve the artist and fan communities. Lyric Financial is proud to be a partner with PledgeMusic. We look forward to supporting them as they continue to grow their world-class platform.” - Lyric Financial Founder & CEO Eli Ball