XSET, a lifestyle gaming organization, is expected to receive $10 million in funding. A portion of that money will be coming from “Quality Control,” a record-label that has worked with a number of famous musicians, including Cardi B and Migos.
According to the Washington Post, XSET believes the deal with QC (Quality Control) will include joint content production efforts. The company also anticipates this deal will result in merchandise collaboration (branded hoodies, hats, etc.).
QC founder and CEO, Kevin Lee, says that this partnership is just one of many being made between the music and gaming industry. “The big companies, whether it’s the Universals, the Sonys, the head companies, I think they’re working out the deals,” he said. “Everyone’s making money, so you can’t cut us out on the music side.”
The Profit‘s Take:
Another example of unsophisticated investors throwing money at fundamentally bad businesses. With potential broader market softness in 2021, we will likely see more teams like XSET struggle to raise financing rounds.
(All information was provided The Washington Post)