Enumma
A music-focused social media app where fans can discover new artists, support them, and earn royalties.
Startup Snapshot
Startup name: Enumma
Industry: Social Media
Business Model: Platform (royalty sharing and in-app ads)
Founder: David Barrera & Mauricio Murga
HQ Location: Monterrey, Mexico
Operations: US & Mexico
Team Size: 7
Founded: October 2021
Stage: Bootstrapped, going for seed round
Website: enumma.com
What does your startup do?
Enumma is a social hub for music enthusiasts and artists. At its core, Enumma harnesses the power of passionate fans to propel emerging musicians to stardom. On this music-centric platform, fans become influential curators, creating content, hosting live streams, and producing videos to showcase their favorite artists' talent.
One of the platform's most exciting features is its artist discovery system, where fans can introduce new talents to the spotlight and seamlessly incorporate their music into their content without facing any restrictions on time or copyright issues. Fans can also easily broadcast or spread their content to other platforms like YouTube and Facebook. This fosters an atmosphere of creativity and collaboration between fans and artists, sparking a new wave of musical breakthroughs.
Enumma utilizes watch time metrics and rewards fans with “Beat” tokens. These tokens are a tangible appreciation for their active support and grant them access to future artist royalties. As artists contribute more to the Enumma ecosystem, fans become essential stakeholders in the success of these musicians, creating a symbiotic relationship between all involved parties.
Enumma effectively creates a strong economic incentive for fans to discover and champion emerging talents, nurturing an ecosystem where musical excellence thrives. Enumma's visionary approach to music discovery and fan engagement revolutionizes how artists rise to fame, ensuring that remarkable talents receive the recognition they deserve.
Enumma exists to inspire and amplify authenticity in music and in life.
It’s more than a shared passion for music that binds us together.
What makes Enumma truly special is how we encourage and honor each other’s true sound and calling in music and beyond.
What's your backstory?
David was born in Monterrey into a family of entrepreneurs, both on his father's and mother's sides. His grandparents, father, and uncles founded and grew successful businesses. Growing up in this environment where everyone was an engineer, David had a somewhat rebellious spirit and decided to pursue something different. He chose to study law because he was drawn to social and human-oriented fields.
He followed that path and studied law at Monterrey’s Facultad Libre de Derecho. While studying law and after graduating, he worked as a corporate lawyer at Martínez Algaba and Santos Elizondo, two of Mexico’s most prestigious law firms, for over six years. Eventually, he felt an intense curiosity and desire to explore beyond a specific field. This led him to pursue an MBA at the Kellogg School of Management jointly with a Juris Doctor at Northwestern Pritzker School of Law.
It was a challenging yet enjoyable period of his life, where he learned a lot. Balancing law school and the MBA was an incredible experience, with both demanding a lot from him. During a summer break, he worked at a prestigious law firm, Skadden, in New York, well-known for its mergers and acquisitions (M&A) expertise. After graduating, he worked there for two years.
Despite the rewarding nature of being a lawyer, he felt he was always serving clients, working on their projects rather than pursuing his passions. He yearned to do something more fulfilling, something of his own. In 2017, he joined a startup in Monterrey that his brother, Jesús Barrera, and Luis Andrés Cano had founded. They had previously worked for several years in a SOFOM (Multiple Purpose Financial Institution). The startup, Nebula Financiera, provided personal loans through a network of community agents who used the Nebula app to originate loans and assist with follow-ups and collections. This model was empowering and socially oriented.
David joined as the CFO but got deeply involved in product design and development, credit and risk management, regulatory issues, and overall operations. Mauricio Murga, who had previously played a leading engineering role at the payments company Conekta, also joined Nebula as the CTO. Together, they built Nebula's core banking, origination, and collection systems from scratch. This journey allowed David to channel his entrepreneurial spirit, combining his passion for law and business with a more fulfilling and impactful role in startups and innovative financial services.
How did you come up with the idea?
The idea of Enumma came about when Vitalik Buterin, the architect or inventor of Ethereum, published a fascinating article on quadratic funding, a way to leverage a community and invest according to their preferences. The concept revolves around radical markets and socio-economic systems, such as carbon bonds, which promote the creation and amplification of public goods. Music is a prime example - consuming it doesn't deplete it, making it a non-finite good that benefits the world, as everyone can use and enjoy it endlessly.
This sparked some ideas, and David began contemplating how these new talents and artists, once they create and distribute their music, face the challenge of reaching larger audiences to grow their fan base. That's when the idea hit him - what if creators and influencers, who already have a massive reach, could be incentivized to discover and amplify these artists? This could be achieved through royalty-bearing Beats tokens that they could earn based on the impact of their campaigns for artists.
For instance, take the case of Steve Lacey's song "Bad Habit" in 2022. Influencers on TikTok started using it, and it climbed to #1 on Billboard, surpassing Harry Styles' single "As It Was." Steve Lacey is an entirely independent and alternative artist, and this exposure from influencers catapulted him to the top position.
The concept of Beats involves a formula of a going rate, determining how much watch time is required to earn a Beat or a fraction of it. As the artist releases Beats, the difficulty of earning them increases logarithmically.
Creators, tastemakers, and music curators seek to monetize their passions online. As a result, Enumma becomes the ideal platform for discovering new talents, attracting music enthusiasts who find a much more enjoyable and exciting way to explore and support artists. Even established artists can engage as fans, identify with other artists, and become promoters or labels, fostering a vibrant and interconnected music ecosystem.
With Enumma, fans can amplify artists and share in their success, and artists can catapult their musical careers by rallying support from fans.
How did you acquire your first customers?
A critical lesson that Mau and David learned from their experience at Nebula was that distribution is as crucial, if not more important, than the product itself. This is especially true in social networks, where they faced the classic "cold start problem" or "chicken and the egg" scenario – if there are no artists, there won't be fans, and vice versa.
So, how did they kickstart Enumma's growth? Among the various strategies they came up with, one of the initial approaches was to create personalized content for artists aligning with Enumma. Through Enumma Studios, the team began validating the idea through a series called "Diamante en el Mapa" where the host travels around Mexico, and soon the USA, to meet emerging artists. The show delves into the artist's life, exploring their background and inspirations, and includes three live musical performances recorded on video. The content feels genuine and different from what other channels offer, as it narrates a story about the artist and their music, giving viewers a very human and objective perspective of the artist.
Another show, "El Fenómeno Peak," targeted towards millennials, captures pivotal moments in an artist's life that led them to their current success. These content initiatives were launched in November 2022, and within less than a year, they already amassed more than 11,000 subscribers.
The community they built around these content initiatives is being nurtured through a private chat on YouTube, connecting artists, fans, and Enumma. When they launch their app, they plan to do it through this existing community, transitioning from a microcosm to a macrocosm, expanding their reach.
Their efforts have attracted attention and support from influential players in the music industry. For instance, Levi’s sponsored the premiere of "Diamante en el Mapa" in Mexico City, which took place live in a house with catering, live music, and the presence of the featured artist.
Inspired by the success story of Jack White and his Third Man Records, which has been a remarkable case of selling merchandise alongside music, Mau and David believe they can replicate a similar model with Enumma, creating a thriving ecosystem that benefits artists, fans, and the platform alike.
What's your motivation?
David plays the guitar, sings, composes songs, and is learning the piano, has a band called Laguna with his brother, Jesús, and studied at Berklee College of Music for a summer during his college years.
Listen to Laguna by De Principio a Fin
As creatives with a deep passion for their craft, Mau and David share a profound belief – they envision a potential renaissance in culture, music, and art. In recent decades, there has been a decline in these aspects of human expression, and they are determined to change that trajectory. With the advancements of AI, they foresee a future where technology can liberate time, allowing people to embrace their humanity, tap into their creativity, and engage in philosophical pursuits. For them, music is vital in enriching life and adding depth to our existence. This is the driving force behind Enumma's mission – to inspire and amplify authenticity in music and every facet of life.
Their "reason why" is rooted in promoting self-awareness, individuality, and the courage to be genuine. By fostering these principles, Enumma seeks to create an environment where artists can express their most authentic selves, free from constraints and societal pressures. Their ultimate goal is to inspire people to be their most authentic selves in their artistic endeavors and personal lives. With Enumma, they aspire to ignite a transformative movement, encouraging individuals to embrace their uniqueness and create a world where authenticity and creativity thrive hand in hand.
What's next for your startup?
Complete our seed funding round in September 2023.
Launch the Enumma app before the end of the year.
Expand and increase Enumma Studios' capabilities and follower base.
Tips for other founders?
Prioritize Your Well-being: As a founder, you are the most valuable asset to your business. Ensure you operate at your best by caring for your physical and mental health, getting sufficient rest, exercising, and maintaining a balanced life. Remember that ups and downs are natural, but constantly strive to improve yourself and encourage personal growth among your team members. A thriving business is built on the well-being of its people.
Embrace Focused Decision-making: Establish a clear cultural foundation for your startup, outlining your core values. "We rock by design," inspired by essentialism, embodies the importance of deliberate choices and saying no to distractions. Focus on your priorities and execute them with excellence. Understand that you can achieve great things, but making thoughtful choices and concentrating on your goals is crucial. As you progress, ensure your decisions align with your company's values and long-term vision.
Balance High Standards with Compassion: Remember the value of compassion while striving for excellence. Avoid being overly demanding and understand the impact of your communication on your team. Foster a culture that values both high standards and passionate dedication. When providing feedback, express genuine care and concern for your team's growth. Together, you can create an environment where everyone thrives, contributing to the greatness of your startup.
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