Several stories surfaced this week stating that Zagadat Capital, the investment company run by Nigerian businessman and musician Ajibade Oluwatosin, better known by his stage as Mr Eazi, had obtained a windfall as a result of the sale of Vydia to gamma. What is the reality between stories that Vydia is a Zagadat Capital portfolio firm and others that Mr Eazi is its owner?
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Using music technology, Vydia assists musicians in organising, monetizing, and distributing their work. Roy LaManna is the CEO of the business, which was established in 2012 and has already raised more than $8 million. Despite the fact that the transaction wasn’t made public until this year, gamma purchased it in December 2022. The agreement’s specifics were also kept under wraps.
Records
Publicly accessible records show that neither Mr Eazi nor Zagadat Capital are Vydia investors. According to Crunchbase information, the business has six investors. These include QueensBridge Venture Partners, Canyon Creek Capital, Newark Venture Partners, Vocap Partners, Pasadena Angels, and Connected Ventures. Zagadat Capital isn’t listed as an investor in any of the press releases reporting Vydia’s fundraising efforts, however.
Vydia’s SEC filings, following its Series A, puts the number of investors at seven but given that Zagadat Capital was launched in 2021, two years after the Series A, there’s very little chance that it is the seventh investor. Dealroom, however, lists eight investors, including Tech Council Ventures, Eastward Capital Partners, and Group 11. Either way, there are no mentions of Zagadat Capital or Mr Eazi. A search for Zagadat Capital’s website doesn’t turn up any results and its Twitter and Instagram handles have a grand total of three posts.
Despite not being a Vydia investor, Mr Eazi is associated with the business through a collaboration with emPawa Africa to introduce Cinch Distro, a music distribution platform. A tweet from Mr Eazi appears to support the assertion made by an emPawa Africa representative that the company invested in Vydia in 2021.
Many of the reports have suggested that the Vydia acquisition is worth $1 billion. However, that is highly unlikely given that Vydia’s last fundraise was a $7 million Series A.
This $1 billion is almost certainly a reference to the amount raised by gamma for its investments. According to a press release introducing gamma, the company aims to change the way artists create and distribute their music.
The company which was founded by Larry Jackson, a former Apple Music Creative Director, has raised capital to drive its investments from investors such as Elridge — which many may know as the company owned by Chelsea owner — Todd Boehly, Apple Music, and A24.
