"We have a real opportunity not just to fund but to story tell," says Spotify's global head of social impact, Lauren Wurgraft.
Spotify has drawn criticism from artists over how much they get paid by the platform, and Youth Music says it had to consider that carefully when agreeing to the deal.
But it's been welcomed by south London rapper Still Shadey who tells Newsbeat music was a "saving grace" and a spark "for something positive" when he was growing up.
The MOBO award winner launched his own scheme to support young people in his area over the summer with funding from Arts Council England, Mirror Mirror.
"We have huge brands taking a step that will hopefully create a catalyst where other organisations can do the same," he says.
Spotify would not tell Newsbeat how much it's spending on the project with Youth Music but Matt says it's "over six figures".
The money will be used to protect youth clubs across the UK that are at risk of closure in a bid to get more young people into music.