Tonada Raises $3 Million for AI-Driven Background Music Business

Stockholm-headquartered startup Tonada, which creates royalty-free, AI-generated background music for retail and hospitality spaces, has raised $3 million in pre-seed funding.

How it works:

• As Tech Funding News explains, Tonada uses a brand’s visual identity, tone, and market position to create a unique, constantly evolving set of original, AI-generated songs.

• There are no licensing agreements, no repeated loops, and the music is tailored for each unique space.

Why it exists:

• The company was founded by former Spotify engineering lead Juan Manuel Serruya and Jonathan Andersson, former Head of Sales at Wolt.

• It was created to address the widespread use of personal Spotify accounts in retail and hospitality venues, which are not licensed for commercial use and can expose businesses to fines.

Funding:

• The funding round was led by Antler, while Spintop Ventures, RTP Global, Triple A VC and Karaoke Club also participated.

• Angel investors included Vercel founder Guillermo Rauch and a16z scout Dora Palfi Osika.

• The money will be used for product development and global expansion.

What they said:

• Juan Manuel Serruya (as per Tech Funding News): “Every brand deserves its own sound. Brands have a CMS for their website, a POS for their checkout, a CRM for their customers, and nothing for how their spaces actually feel. This round lets us build that layer at the pace the market is asking for. Music is the first surface. It is not the last.”