Larrosa has made a big splash within the music enterprise over the previous couple of years.
In 2023, the Spain-born finance and tech-centric music firm raised over €15 million ($16m) to accumulate catalogs and deploy advances to artists, specializing in Spanish-speaking markets.
In November, Larrosa fashioned a strategic alliance with Bell Companions, based by veteran author, producer, and govt Hayden Bell, to accumulate unbiased music corporations and catalogs.
Bell Companions, based in 2022, has invested over USD $350 million in music rights up to now. In keeping with the announcement on the time, by way of their partnership, Bell and Larrosa plan to spend an analogous quantity on music corporations and catalogs “within the coming years”.
With an already sturdy presence in Spain and Latin America, Larrosa has now taken a strategic step towards international enlargement by opening a brand new headquarters in Dubai, United Arab Emirates.
The corporate tells us that it’s launching out there with a “strategic roadmap for MENA enlargement via innovation and focused acquisitions”.
Working underneath the identify Larrosa MusicTech & Capital, Larrosa says that this subsidiary will handle its mixed portfolio of music and know-how property valued at over €15 million ($16m).
“We selected to broaden into the UAE as a result of the nation affords unbelievable alternatives for corporations like ours, notably these deeply concerned in superior know-how and revolutionary monetary constructions for the music {industry},” explains the corporate’s founder and CEO, Cristian Larrosa.
“Dubai particularly stands out as a world monetary hub, which makes it superb for scaling technological partnerships with main firms and authorities our bodies, in addition to exploring new enterprise fashions round music property, catalogs, and artistic tasks.”
The brand new base in Dubai may also function Larrosa’s operations and partnership hub for the broader Center East, North Africa, and Asia markets.
Commenting on the largest alternatives he sees in these markets, the corporate’s CEO says that “there’s a vibrant wave of music-related innovation sweeping throughout the area.”
“We’ve already carried out a number of operations with Asian catalogs, and we’re notably intrigued by North Africa’s spectacular development, so we’re taking a look at it carefully,” he explains.
“Nonetheless, our major focus stays the Center East, pushed by financial enlargement and its rising international affect.
“The current institution of Music Nation within the UAE, supported by BMI and SoundExchange, underscores the area’s evolving panorama, making rights administration and royalty assortment extra structured and environment friendly than ever.”
As a part of its enlargement into Dubai, Larrosa says that the corporate is at present in “superior negotiations with funding funds” within the UAE that wish to again “revolutionary tasks” working on the crossroads of know-how and music.
“We’re very smitten by exploring M&A alternatives within the MENA area,” Cristian Larrosa tells us.
“The fast evolution of the music-tech ecosystem right here affords distinctive prospects. We’re particularly fascinated by partnering with corporations targeted on music tech improvements, catalog acquisition platforms, AI-driven instruments, and fan-engagement options.”
He provides: “With success tales like Anghami and the rising funding curiosity from regional funds in culturally-rooted and tech-driven IP, we see MENA as essential for our strategic development.
“We’ve already began cultivating native partnerships and look ahead to increasing our presence via focused M&A.”
“We’re very smitten by exploring M&A alternatives within the MENA area.”
Cristian Larrosa
Following the $16 million elevate in March 2023, Larrosa additionally confirms that the corporate is seeking to elevate extra capital to fund its M&A exercise.
“We’re actively engaged in discussions with varied funding funds, together with a number of at present in formation throughout the UAE, Europe, and america,” he says.
Individually, by way of its not too long ago introduced alliance with Bell Companions, Larrosa confirms that the corporate can be “actively progressing within the evaluation of assorted tasks, catalogs, and corporations.”
He provides: “Our staff continues to work diligently on these alternatives with the purpose of closing a number of offers quickly.”
Past catalog funding alternatives, Larrosa says that the brand new Dubai HQ may also act “as a bridge to attach with regional and worldwide traders fascinated by new applied sciences equivalent to blockchain, synthetic intelligence, and quantum computing utilized to the sector”.
From its Europe-based “innovation middle”, the corporate’s Larrosa Labs division has been creating tech instruments equivalent to ‘Wolfie AI’, described as “an AI-powered suite providing specialised help instruments for the music {industry}, together with non-generative audio options”.
“I genuinely consider AI will profoundly impression the music {industry} past simply manufacturing and composition,” says Cristian Larrosa. “It is going to more and more turn into a vital device in day by day operations, from rights administration to artist reserving and authorized frameworks.”
He explains that his “imaginative and prescient” about AI’s future positioning within the enterprise “impressed” the corporate to create WolfieAI, which he claims is “the primary AI platform completely designed for the music {industry}”.
“Wolfie doesn’t simply function a sophisticated chatbot,” says Larrosa. “It integrates specialised {industry} instruments, together with a sturdy audio suite and devoted immediate helpers tailor-made for each sector.”
“I genuinely consider AI will profoundly impression the music {industry} past simply manufacturing and composition.”
Cristian Larrosa
The corporate could be investing in AI instruments, however Larrosa is adamant that the “ongoing debates round generative audio concern [him] deeply.”
“We see a urgent want for a clear, inclusive licensing framework that advantages your complete {industry}, not simply choose gamers,” he says.
“Transparency in AI, equivalent to clear insights into coaching information and transparency from builders no less than the place artistic works are concerned, is essential.”
He insists that WolfieAI’s remaining iterations will incorporate moral applied sciences addressing “industry-wide issues”.
Larrosa Labs has additionally developed ArtSigna, which the corporate describes as “a pioneering platform for certifying music rights on the Bitcoin blockchain,” and which, it claims, “is quickly to be built-in with collective administration societies”.
Seeking to the way forward for the corporate’s positioning within the UAE, Cristian Larrosa believes that the MENA area “is positioned for outstanding development.”
In keeping with international recorded music physique IFPI, the Center East and North Africa area was the fastest-growing globally in 2024. Recorded music revenues elevated by 22.8% YoY there in 2024, whereas streaming within the MENA area accounted for 99.5% of whole revenues.
Larossa argues that additional development within the MENA area shall be “pushed by rising investments in artistic industries, stronger IP rules, and better integration of know-how into music distribution and rights administration”.
He provides: “International locations just like the UAE and Saudi Arabia are prone to turn into key international gamers, pioneering digital innovation, together with AI and blockchain options, thus creating thrilling new monetization alternatives and boosting regional cultural affect internationally.”Music Enterprise Worldwide
