Amplified.com Sings Praises of $4M Round

Amplified.com raised $4.5 million June 2 in its second round of venture financing. The Atlanta-based company provides Internet services for five of the top 12 retailers in the music industry.

Constellation Ventures, the venture capital arm of Bear Stearns, and Psilos Group each invested in the round. Noro-Moseley Partners, which did not return for the Series B round, had invested an undisclosed amount in Amplified’s first institutional round of venture financing in April 1998. No placement agent was used for the deal.

“There are many formats in which music is delivered over the Internet, and we make it easier for online retailers and record companies to distribute music,” said Chief Executive Wayne Parker.

Amplified provides storage and encoding services to online retailers including Tower Records and National Record Mart. The company also manufactures custom CDs that allow users to legally record music downloaded from the Internet. The company will ensure that royalties be paid to record labels and music publishers.

Proceeds from the investment will go toward product development and adding additional staff.

Incorporated in 1994, Amplified originally provided music previews for customers such as Billboard Online.

Parker would not comment on when his company’s next round of financing would take place.