DistroKid is a unicorn.

The US-based DIY distribution platform confirmed today (August 16) that it has accepted an investment from Insight Partners which values it at $1.3 billion.

(DistroKid hasn’t confirmed the size of Insight Partners’ funding but, by way of example, DistroKid would hit a $1.3 billion valuation if 10% of it was sold for $130 million, or if 1% was sold for $13 million.)

Silversmith Capital Partners, a Boston-based growth equity firm that led DistroKid’s first outside investment in 2018, will retain “a meaningful ownership position” and remain on DistroKid’s board.

MBW also understands that Spotify retains its minority stake in the distributor.

Founded in 1995, New York-based Insight Partners has invested in more than 400 companies worldwide and has raised through a series of funds more than $30 billion in capital commitments.

Its portfolio includes the likes of Shopify and HelloFresh, while it was an early investor in Twitter.

The $1.3 billion valuation puts DistroKid in the billion-dollar-plus distribution club alongside the likes of Believe – owner of DistroKid rival TuneCore – which currently carries a public market cap of €1.64 billion ($1.93 billion) on the Paris Euronext.

In another important update today, DistroKid confirmed that it now has more than 2 million artists on its platform using “the tools and services that DistroKid provides”.

The company estimates that it distributes more than a third of all new music globally, which ties into the revelation announced in May that DistroKid now distributes over a million tracks to digital services each month.

“My goal since founding DistroKid was to build great things for musicians,” the company’s founder and CEO, Philip Kaplan said today. “Our growth has been wild, but the mission hasn’t changed. Most of all, we’re incredibly honored and thankful for every artist who’s chosen DistroKid to be a part of their journey.

“I’m excited to partner with Insight Partners as we continue building amazing things to help musicians and empower creators worldwide.”

“DistroKid has already become a household name among musicians of all levels and we’re thrilled to partner as they continue their rapid growth.”

Deven Parekh, Insight Partners

Insight Partners Managing Director, Deven Parekh said: “DistroKid is transforming the music industry with its laser focus on innovation, including the latest technology and engineering expertise. By helping developing artists with the same opportunities as superstars, DistroKid stands out in an industry traditionally known for being hard to break through.

“DistroKid has already become a household name among musicians of all levels and we’re thrilled to partner as they continue their rapid growth.”Music Business Worldwide