ARTISTdirect Raises $15M Second Round

ARTISTdirect Inc. recently received $15 million in its second round of venture financing. The Encino, Calif.-based company sells merchandise, compact discs and concert tickets through its music community Web site.

Chase Capital Partners of New York led the Series B round with a $5 million investment. Bowman Capital and Cassandra Capital also contributed first-time investments. Existing investors Flatiron Partners, Psilos Group Ventures and Constellation Ventures, the private equity arm of Bear Stearns, each returned at pro rata.

“We were oversubscribed as we tried to accommodate all of our existing investors,” said President Marc Geiger. “But we like the people and managed to find room for everybody.”

Geiger said his company is currently restructuring its board, and will likely add Chase General Partner Bob Greene as well as a representative from Cassandra.

ARTISTdirect hosts the official Internet stores for several recording artists including the Rolling Stones, Beck and The Backstreet Boys.

Proceeds from the investment will be used for sales and marketing, including a mass media advertising campaign and strategic distribution partnerships. Internet ratings service Media Matrix reports that ARTISTdirect currently attracts 2.6% of all domestic Internet users.

Prior to founding ARTISTdirect, Geiger headed the music division for Triad talent agency, and was a cofounder of the Lollapalooza Concert Festival.

Although Geiger would not comment on whether his company would soon file for an initial public offering, he said it was unlikely that ARTISTdirect would raise additional equity in the private markets.

“We have various strategies in mind,” he said. “Going back to private equity is not really in the plan today.”