In the ever-evolving world of digital content creation, collaboration is key. Yet, one of the most significant hurdles creators face is the complex task of splitting payments among different collaborators. Enter Mozaic, a trailblazing startup offering a smart solution to this challenge.
The Genesis of Mozaic’s Mission
Founded in 2015 by the visionary duo, CEO Marcus Cobb and SVP of Growth Rachel Knepp, Mozaic, initially known as Jammber, embarked on a mission to create a suite of tools designed to streamline various facets of the music business, from managing credits to ticketing.
The journey of Mozaic, which has attracted over $27 million in funding, including a substantial $20 million Series A round from Volition Capital, is a testament to its innovative approach. The company’s investor portfolio features names like Rise of the Rest and Maverick Nashville, along with music industry luminary Joe Galante.
A Pivot to Payment Solutions
Initially focusing on B2B aspects of music, the pandemic prompted Mozaic to pivot towards developing a collaborative payments product. Cobb shares a fascinating anecdote about this strategic shift: A hastily crafted PowerPoint sales deck and cold calls to 200 music distributors resulted in an overwhelming 60 Letters of Intent within a month, signaling a ripe market opportunity.
The goal? To offer creators a robust alternative to conventional payment methods like PayPal and Venmo, which may not be feasible for collaborators in countries where these services aren’t available.
How Mozaic Works
Mozaic’s flagship offering is an API that effortlessly integrates with platforms such as Spotify, YouTube, Twitch, and other custom solutions. This technology has already been adopted by Jason Hadshian’s Made By Us Music and Creative Space & Events, known for their work with celebrated artists.
Cobb explains that Mozaic employs JSON-based smart contracts (not blockchain-based) to automate payment distribution among collaborators according to predefined rules. This approach not only simplifies transactions but also adds transparency and efficiency to the process.
A New Era of Payment Transparency
What sets Mozaic apart is its ability to provide immediate and transparent payments to artists, coupled with detailed project reports. For those not on the platform, a simple sign-up process is all it takes to start receiving automated payments. Mozaic charges a reasonable fee of 1.99% + $1 per transaction, capped at $25, for its services.
The music industry, plagued with laborious and manually intensive reporting systems, finds a breath of fresh air in Mozaic’s solution. Its compatibility with legacy systems of labels and distributors is crucial for broader adoption.
Looking Ahead: Expansion and Innovation
Despite competition from modern distributors like DistroKid and ByteDance’s SoundOn, Mozaic’s cross-border capabilities give it a competitive edge. The startup is not just confined to the music industry; its solutions are apt for a diverse range of creators from YouTubers to Twitch streamers and newsletter writers.
January 2024 will see the launch of Mozaic’s Chrome extension and mobile app in an invite-only mode, with a broader rollout planned for Q1 2024. This innovation will enable creators to effortlessly add payment splits across various platforms, from YouTube to Etsy.
A Promising Future Fueled by Positive Cashflow
Mozaic’s financial health is robust, with the company achieving cashflow positivity this year. This stability, coupled with plans for team expansion using the newly acquired funds, underscores its commitment to staying close to profitability.
Larry Cheng, co-founder and managing partner at Volition Capital, highlights the significant burden of payment splitting on creators, even those who are well-established. With the rising popularity of alternative creative verticals like YouTube Gaming, Mozaic is perfectly positioned to leverage this trend.
Conclusion
Mozaic’s journey represents a paradigm shift in how creators manage financial collaborations. By providing a seamless and transparent solution to payment splitting, Mozaic is not just simplifying a complex process; it’s empowering creators to focus on what they do best – creating.
