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ARTISTdirect Closes on $15 Million in Equity Financing

Encino, CA-based ARTISTdirect Inc., which operates several music destination Web sites, said it has closed on $15 million in equity financing.

Investors include Chase Capital Ventures, Bowman Capital, Flatiron Partners, Cassandra Capital, Psilos Group Ventures and Constellation Ventures, part of the Bear Sterns Asset Management Group.

The ARTISTdirect.com network includes official stores for artists such as the Rolling Stones, Beastie Boys, Beck, Tom Petty, Backstreet Boys, and others, which enable these artists to sell merchandise, CDs and concert tickets directly to their fans. It also operates The Ultimate Band List, a music content and search destination; and iMusic, a music community site.

The company said the financing will be used to increase marketing and advertising to create mass brand awareness, and to launch additional artist-specific channels and online stores, develop strategic distribution partnerships and launch a platform for digital distribution of music.

"This investment will allow ARTISTdirect to expand our leadership in online music content, community, and e-commerce, as well as aggressively move forward with our plans to become the ultimate digital music distribution hub," said Marc Geiger, president of ARTISTdirect.

"We are impressed with ARTISTdirect's client roster as well as the way they utilize the assets of UBL.com and iMusic to position themselves to discover, promote and distribute the music of tomorrow's stars," said Bob Greene, general partner of Chase Capital Partners.