Practice makes perfect — the core message of Soundbrenner’s products. CEO and co-founder of Soundbrenner Florian Simmendinger reinvented the way musicians learn and practice musical instruments.
Started in 2014, Soundbrenner has sold products in over 40 countries, with 700,000+ app users worldwide. Their goal in the following 2 years is to focus on product development and market expansion.
Today, Choco Up shares the success of our partnership.
Like other startups, Soundbrenner aimed to solve a crucial pain point. When Florian was making music, he noticed there were no advancements on music technology. Together with co-founder Julian Vogels, they sought to change this.
After several years of operation, the growth of their customer base has reached a bottleneck. They would like to invest into the development of new product lines for their existing customer base.
“Over a billion people try to learn music and more than 90% give up within a year,” says Florian of their huge potential market.
Inventory management is critical to fully capture Black Friday/Cyber Monday seasons. Soundbrenner needs funding to finance their purchase of inventory ahead of the peak-seasons to ensure they make full use of it.
However, bank borrowing and traditional equity is slow, cumbersome, and unfriendly, making it a lengthy and agonistic process. Therefore, the company needs non-dilutive growth funding to assist in product development and the purchase of inventory.
“Almost everyone wants to be a musician. Almost nobody succeeds. So our goal as a company is to bring that change to the world,” says Florian.
The company is also expanding their market with the development of new products. New products will allow the company to scale their revenue with different streams of income.
Therefore, Soundbrenner will need to invest into marketing as well as product development to tap into their new markets.
Flexible working capital is crucial to satisfy this huge growth need. Private equity companies and banks may not have the expertise to understand this demand for capital, making it difficult to obtain funding.
Since Choco Up’s initial investment, Soundbrenner has achieved an average of 12% month-on-month revenue growth, expanded into 10% new distribution channels, and captured a 187% revenue growth during the holiday seasons.
Choco Up understands the needs of digital merchants, including the importance of inventory planning. Choco Up’s investment has allowed the company to be fully prepared for spikes in sales, making full use of sudden increases in demand.
Additionally, Choco Up’s API plugins provide direct integration with sales channels, providing the company with a swift business underwriting process to mitigate lengthy negotiations.
Real time data monitoring allows Choco Up to track store performance, specifically during Black Friday and Cyber Monday, giving the company ongoing sales and growth insights.
Choco Up provides flexible growth capital to the company, allowing them to develop new products, invest into inventory and marketing all at the same time.