AI Protection Platform Vermillio Raises $16M in Series A Funding Led by Sony Music Entertainment

Vermillio, a platform focused on AI licensing and content protection, has secured $16 million in Series A funding, with Sony Music Entertainment and DNS Capital leading the investment.

The funding will support Vermillios expansion as it builds solutions to help talent, studios, and record labels protect and monetize their content in the era of generative AI.

“We are setting a new standard for AI licensing — one that proactively enables consent, credit, and compensation for innovative opportunities,” said Dan Neely, Co-Founder and CEO of Vermillio. “With the support of an innovation leader like Sony Music, Vermillio will continue building our products that ensure generative AI is utilized ethically and securely. At this critical moment in determining the future of AI and how to hold platforms accountable, we are proud to protect the worlds most beloved content and talent.”

Generative AI is projected to generate over $1 trillion by 2026, according to Bloomberg and Goldman Sachs. Vermillio offers a secure AI licensing system that allows creators to protect their intellectual property (IP) while engaging with AI technologies. TraceID, the platforms proprietary tool, ensures that talent and IP holders can manage terms, conditions, and usage rights while capitalizing on new revenue streams.

Sony Music Entertainment, which has been vocal about developing responsible generative AI use cases, sees Vermillio as a key partner.

“Dan Neely and the team at Vermillio share our vision that prioritizing proper consent, clear attribution, and appropriate compensation for professional creators is foundational to unlocking monetization opportunities in this space,” said Dennis Kooker, President, Global Digital Business at Sony Music Entertainment. “We look forward to expanding our successful collaboration with them.”

Vermillio has already launched high-profile collaborations, including a partnership with talent agency WME to protect its clients from IP theft and facilitate secure AI licensing of their name, image, and likeness (NIL).

In collaboration with Sony Pictures, Vermillio developed a Spider-Verse AI engine, allowing fans to create unique digital versions of themselves in the animation style of the film. The 1.5 million fan creations were all tracked using TraceID, ensuring secure attribution to the filmmakers original work.

Vermillio also partnered with Sony Music and Legacy Recordings on a project featuring The Orb and Pink Floyds David Gilmour, enabling fans to remix an album and create original artwork while maintaining ownership records through TraceID.

TraceID aims to address core concerns in generative AI, including IP and NIL content monitoring; real-time alerts and takedown management; lost revenue recovery; AI licensing audits; and payment management for AI-generated works.

Neely, recently named to TIMEs 100 Most Influential in AI, has been at the forefront of AI policy discussions. He played a key role in shaping the NO FAKES Act, legislation aimed at protecting individuals from unauthorized AI-generated deepfakes.