Mozaic secures $20 million in funding to develop payment-splitting solution for creators

Creators commonly collaborate with various partners on different projects, making splitting payments a major challenge. Mozaic (formerly Jammber) aims to address this issue through its range of solutions, including APIs and Chrome extensions.

The company has successfully raised a $20 million Series A round of funding from Volition Capital. To date, Mozaic has acquired over $27 million in funding from investors such as Rise of the Rest, Maverick Nashville, and music industry executive Joe Galante. The startup was established in 2015 by CEO Marcus Cobb and SVP of Growth Rachel Knepp with a focus on developing tools for various aspects of the music business, from managing credits to ticketing.

Cobb stated to TechCrunch that initially, the company concentrated on the B2B aspects of music but pivoted towards creating a collaborative payments product in 2020 due to the pandemic, leveraging its experience in music project management.

Mozaic’s core product is its API, seamlessly integrating into platforms like Spotify, YouTube, Twitch, and custom solutions. Made By Us Music and Creative Space & Events, associated with artists like 50 Cent, P Diddy, The Clipse, and Rihanna, utilize Mozaic’s solution to automate client payments.

Operational Process

Cobb explained that typically a song involves three to five collaborators, with only the creator receiving immediate payment. Mozaic utilizes JSON-based smart contracts (non-blockchain) to automatically distribute payments to collaborators based on project rules.

Artists receive payments and project reports directly on the platform, and if unregistered, they can sign up with basic information to commence receiving payments automatically. Mozaic charges a fee of 1.99% +  $1 per transaction (capped at $25) for its services.

According to a music industry insider, record labels and distributors have laborious, manual systems in place, lacking transparency and requiring frequent follow-ups. Platforms like Mozaic can offer a more efficient solution, but to achieve broader adoption, the startup’s API needs compatibility with labels’ legacy systems.

Future Plans and Challenges

While modern distributors are implementing automatic royalty split algorithms, Mozaic believes its cross-border capabilities will contribute to its wider adoption.

Cobb emphasized the need for labels and creator houses to adopt modern payment solutions to remain competitive and retain artists. Mozaic anticipates its solution to be beneficial not only in the music industry but also for creators like YouTubers, Twitch streamers, and newsletter writers. The company plans to introduce a Chrome extension and a mobile app in an invite-only mode in January, with intentions to make it available to all creators later in Q1 2024.

Image Credits: Mozaic.io

“What I’m personally most excited about is a Chrome extension that allows you to add splits to anything. That Chrome extension will work on YouTube, on Etsy, on Spotify and on GitHub. And it’s as easy as tagging your friends on the product pages,” Cobb mentioned.

Mozaic is also developing a website for businesses to enhance reporting and revenue split for affiliate sales.

As of this year, the company is operating with positive cash flow. Despite plans to expand the team with the newly raised funds, it aims to remain close to profitability.

Larry Cheng, co-founder and managing partner at Volition Capital, highlighted the significant burden that payment splitting poses on brands led by creators and established artists. He noted the potential for Mozaic to capitalize on the growing trend of alternative creative platforms like YouTube Gaming.

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