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After the preliminary work and concept for AuroMasters, developed by Wilfried Van Baelen in 2023, the company was officially established on January 24, 2024, with an initial capital of €525,000 contributed by seven shareholders, the largest holding a 17.5% stake. Shortly after its founding, the company successfully secured a €50,000 startup grant from VLAIO, which has since been fully disbursed
Below is a high-level outline of the planned activities for 2024. The founders and investors successfully raised capital totaling €760,000 to ensure the company and all developments remain fully operational through the end of January 2025, meeting all financial obligations.
Following a successful Proof of Concept to test streaming capabilities with Adaptive Bitrate technology, approved in July, development of the streaming platform's backend began and is now operational. The team is currently integrating additional features outlined in the roadmap.
The App and streaming platform will undergo closed beta testing in December 2024, with approximately 50 testers in key markets. This testing phase will expand in January 2025 to include more beta testers, ensuring thorough preparation for the official launch of AuroMasters at the end of Q1 2025. The initial launch will cover the USA, Europe, India, Japan, and Korea, with further markets planned to follow shortly after.
Use of funds
While we aim to reach the maximum funding goal, we have taken a cautious approach and outlined how the funds will be allocated if we achieve €475,000. If we reach the maximum target for the SPREDS crowdfunding campaign, the additional funds will be invested in marketing and securing more exclusive legendary content mixed in Auro-3D. Collaborations with iconic artists will amplify awareness and accelerate growth, bringing our vision to life even faster.
Marketing and Communication : 50%
The company aims to establish itself as a trusted brand, known for high-quality products supported by world-renowned producers, engineers, and prominent artists. This effort will include creating and distributing video interviews on social media to build brand recognition. These activities will target both B2B (to onboard more artists to share their music through AuroMasters with their fan base) and B2C (to engage music lovers and audiophiles). AuroMasters will also participate in key international conventions—some focused on B2B and others on B2C—to increase awareness of this innovative streaming platform. Additionally, targeted social media investments will help reach potential consumers.
Content Creation : 25%
Many new productions are created in Immersive Sound, most of them can be uploaded to the AuroMasters platform without additional investment. However, regularly releasing legendary albums by iconic artists, mixed by top producers and engineers from METAlliance, is essential. These releases have a significant impact on marketing and international music press, helping to attract more consumers and grow the platform. AuroMasters will pre-finance these remixing projects, recouping the costs primarily from initial streaming revenue before sharing profits with the related Record label. After the investment is recovered of each album, AuroMasters will continue to receive a royalty on each stream of this legendary albums. Given the popularity of these albums, with millions of sales, streams, and fans, this revenue has the potential to bring substantial extra income to AuroMasters.
Operations & Maintenance : 15%
Maintaining the streaming platform and regularly updating the App with new features are essential for the platform’s future growth. This ensures smooth operation as thousands of albums are added and millions of streams are accessed simultaneously.
Quality Control : 5 %
Quality control is also critical to ensure that all uploaded content meets technical specifications and delivers the high-quality experience AuroMasters consumers expect in all genres of Immersive Music.
Finance & Administration 5%
Finance, administrative and legal support costs (accounting, external reporting to Record labels, contracting etc.)
Milestones & Growth Trajectory
2024
Foundation & App and Backend infrastructure, building the Brand Identity, integrating Adaptive Streaming technology, and completing the Proof of Concept.
The first 100 music titles in the Auro-3D Immersive Sound format will be uploaded on AuroMasters, alongside the establishment of a robust quality check mechanism with beta-testers.
Total investments provided will amount to €725,000, with no revenue expected during this phase.
2025
AuroMasters is set to officially launch in Los Angeles during the first quarter, in partnership with METAlliance, a prestigious collective of acclaimed audio engineers and producers.
Efforts will focus on scaling the app, growing the music library to over 1,000 Auro-3D albums, and achieving 40,000 subscribers spending an average of €2 per week.
The majority of the revenue will be reinvested into creating legendary albums and driving impactful marketing efforts, further enhancing awareness and expanding reach to a broader consumer base
2026
The primary goal will be to reach breakeven a positive EBITDA of at least € 0,5 million while having invested much more money in marketing and the creation of a weekly new legendary album to secure further growth.
By this stage, the platform aims to host more than 4,000 albums and 150,000+ subscribers with an average weekly spend of €2, and capture a market share of approximately 0.0017%, equivalent to 8 million album streams per year.
The company's valuation, including terminal value, is expected to exceed €25 million
2027
The focus will be on doubling revenue to €25 million, achieving an EBITDA of €2.2 million, and generating a net profit after tax of €1.8 million. To sustain growth and broaden consumer reach, investments in legendary albums will enable the release of six new albums / month. Additionally, an increased marketing budget will strengthen engagement with music lovers through targeted social media campaigns.
Subscriber numbers are projected to reach 314,000, with an average weekly spend of €2 per user. The music library will expand to 10,000 albums / 150,000 songs, offering premium Auro-3D content across a wide range of genres, including local music. This growth will translate to a market share of 0.0028%, equivalent to 16 million album streams in 2027.
The company's valuation, including terminal value, is expected to exceed €45 million.
This roadmap outlines a clear path for sustainable growth and market leadership in Immersive Audio streaming.
VALUATION
Currently, there is no revenue as the product is set to launch in Q1 2025. However, significant value has already been created through the development of the product, associated intellectual property (IP), brand identity, and go-to-market (GTM) strategy.
A Discounted Cash Flow (DCF) analysis, based on a conservative perpetual value, places the valuation at over €7.5 million. The Berkus Method estimates the valuation at €3.75 million. A report from a Big Four firm would yield an even higher valuation by factoring in the IP and comparable market transactions, significantly boosting the overall estimate.
However, the shareholders aim to strike a balance and offer a generous discount for SPREDS investors, proposing a pre-money valuation of €2.4 million
TAX SHELTER
45%
Investments in this company benefit from a 45% personal income tax reduction. Read more…
A remaining amount of €394,500 is available for the Tax Shelter benefit.
Fact sheet
Advised by a professional start-up advisor
Valuation is set by the co-investor or incubator
Co-investor or incubator will be members or observers to the board
At the closing, an incubator, accelerator, or studio will have shares
At the closing, the entrepreneurs have contributed a minimum of €15,000 in cash in exchange for shares
At the closing, a professional co-investor will have invested at least €25,000
Prior fundraising in equity or convertible loan with 10 or more investors
Seasoned entrepreneurs
Minimum 2 active entrepreneurs
Valuation set by an organisation specialized in valuations of comparable size
Valuation is less than €1 million or 10x last year’s turnover
