THE GLOBAL MUSIC MARKETPLACE

Agenda

Problem &

Solution

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MVP & The Marketplace

02Market Information &

Business Model

03

Market Adoption,

Partnerships &

Financials

04Milestones &

Team

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Funnel Music has established a disruptive financial and legal model for the creation and marketing of music which is a natural partner to the

latest developments in technology. Artist centric with an engaged professional community incentivized to work with new talent, this is major

shift in how artists careers are developed.

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The Music Industry in booming, streaming is driving

Growth

WHAT’S THE PROBLEM?

Scott Lavene“Sounds like an updated version of something that Stiff records would have released in the 70’s”

Steve Lamacq - BBC 6 Music

Problem

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Outdated models keep the cost of taking

new artists to market unnecessarily high with

limited investment in early development.

Revenue is primarily focused on a few Global

artists such as Beyoncé, Ed Sheeran and

Adele.

Solution

The Funnel is a marketplace for artists and professionals powered by the

‘Shared Outcome Agreement’ (SOA)

The SOA offers a transparent and effective way of financing and nurturing new

& existing talent. Artists create their product at a fraction of traditional costs

supported by the quality of team they need. In return for a discounted fee,

professionals share in net revenues generated from rights created by the artist

in current and future projects, creating long term revenue streams from these

‘investments’.

A natural partner to technology and blockchain, the SOA provides a

solution which totally disrupts existing legal and financial structures,

creating an eco system to meet the demands of the artists, labels

and professionals in the developing digital landscape.

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SolutionThe Funnel is a marketplace for artists and professionals powered by the

‘Shared Outcome Agreement’ (SOA)

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New Artists

Powered By Blockchain

Products

Provide Rights Sharing Revenue

Funnel Platform

Professionals

MVP'MVP’ of The Funnellaunchedat SXSW 2019 Austin, Texas:

▪ Project builder

▪ Accounting and reporting

Series B work includes:

▪ Marketplace

▪ Increased manager tools

▪ Data Mining

▪ Smart contracts

▪ Distributed ledgers

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The Marketplace

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Market Information

Music and Technology Works

Global Recorded Music Revenues Grow 9.7% in 2018*

Total streaming revenues grew 34.0%* to nearly half of all revenue,

driven by paid streaming * IFPI global music report 2019

Distributor and label services to artists and

labels, sold to Believe Digital. Estimated value

$100 million.

Tech driven publishing business 8,000 artists.

600 publishers Estimated value $770 million.

Music discovery platform sold to Apple for over

$400 million.

Largest streaming platform with over 100 million

subscribers currently valuation of $26 million.

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Business Model

Legals▪ The SOA is the binding agreement from which

everything runs

▪ The terms are binding on all parties that enter The

Funnel

▪ AI will provide templated terms subject to data

available for project

▪ Final terms are defined in real time in The Funnel

and enacted through Smart Contracts

▪ Blockchain supports the transparency of these

agreements

Artist & Their ProjectArtists retain 100% of all right created. They, their representative or

label confirm

▪ % revenue share to label & professionals

▪ Rights included in revenue share - recording, publishing, ancillary

▪ Term - 10, 20 years etc

▪ Additional product available – more albums etc

The FunnelData provided in The Funnel generates suggested

deal to be offered to marketplace. This includes:

▪ Term, rights available for revenue share and

further product

▪ Budget and P&L is created with projected returns

▪ Probability of securing support of marketplace is

indicated if/when project is supported, final legal

terms are completed in real time on platform via

smart

Professionals▪ Professionals create their profile

▪ The Funnel assesses data provided and will create a rating

▪ Rating will give weight to projects they are prepared to work with

▪ Professionals can receive and pitch for work opportunities based on SOA

▪ The Funnel will offer ability to review viability of project and ‘negotiate’

terms with artists representatives

▪ Transparent reporting

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Market Adoption

▪ 15 artists in roster

▪ Over 50 releases

▪ Over 5 million streams

▪ In house product management

team including digital content

and marketing

▪ Label services to 3rd party labels

Funnel Records

▪ 12 artists in catalogue

▪ Sub publishing with

www.sentricmusic.com

▪ In house sync manager

Funnel Publishing

▪ UK wide live circuit running across 18

venues each month September to May

▪ Expanding to SU and Europe in 2020

Funnel Live

▪ 6 artists in roster

▪ Mentoring support for

new managers

Funnel Artists

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Funnel Partners

PartnershipsFunnel has selected tech-based partners to commercialize the rights generated by the marketplace including:

Leading independent tech-

based global music distributer

INgrooves

Technology-driven international

publishing administrator

Sentric Music

UK’s leading digital

merchandise solution

for artists worldwide

Music Glue

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Milestones

▪ £1,630,000

▪ Invested via

▪ www.deepbridgecapital.com

▪ April 2018

EIS qualified

▪ To enable the business to take full

advantage of the opportunity to scale

globally, it is planned to complete a

Series B round of circa £10 million

Series B

▪ Building next stage of technology for

The Funnel, key hires and for

investment in more artists and their

rights by Funnel’s music companies

Application of funds

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02

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▪ Further rounds may be considered. The creation

of a tokens based fund supported by revenues in

platform is under consideration

Future

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Team

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Ric YerburyFounder & Exec Chairman

Tim DelaneyCEO

David SteeleHead of artist management

Alison WenhamNon Exec

Rich SaltCTO

Ron JonesFCO

Joss YerburyCOO

Alex PilkingtonCo Founder & CCO

Strength of Team

Funnel has been steadily growing an impressive senior

management and advisory team.

Between them there is a wealth of experience in technology

and in all areas of the music industry as Artists, Managers,

Promoters, and Record Label Executives.

The team have worked in the world’s largest labels and for

the world’s largest artists.

They also have proven corporate and investment experience

in the music and technology industries.

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THANK YOU

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