Startups · Venture capital

Is it true that VC's are reluctant to invest in music related startups?

Roey Ben-Hayun Founder at FOONDHA

April 26th, 2015

Is it true that VC's are reluctant to invest in music related startups?
A great idea is 1% of the work. Execution is the other 99%. In this course, we’ll teach you how to conduct market analysis, create an MVP and pivot (if needed), launch your business, survey customers, iterate your product/service based on feedback, and gain traction quickly.

Barry Coffing Founder/CEO at WeGet Artists

April 26th, 2015

I think the general feeling here is correct. Yes I have heard the "Valley of Death" talk and Yes the official Music market is shrinking but the use of music is at an all time high. The streaming services and unlicensed video uses that have eroded the market revenue numbers are not an indication of the demand. While the revenue may be shrinking the use is expanding so while it is a highly-competitive there is an ever expanding market that is not showing up at the major labels & publishers. We are seeing big growth in India/China for music mobile bundles.

Robert Hurst Robert Hurst, Co-Founder at Audio Network Group

April 26th, 2015

Nick, the music industry of both today and of the future is not just about being a middleman selling music downloads or streaming services. It is a creative industry

If you dig beyond the high profile press stories associated with the likes of Tidal, the music ventures that are getting funding and prospering are adding value in ways beyond a 'me-too' streaming service and fulfilling a need with something useful as Nikol identifies in her post

As John said, if you focus on building a strong, profitable business, serving a real need and generating happy customers, you'll always be able to find investors - even if they're aren't the traditional Sand Hill Road crowd (which isn't all bad, anyway).

Jayakumar.S Singaram Member Founding Team at RINANU SEMICONDUCTORS LLP

April 26th, 2015

I think so.. I think there is huge growth  options for Music industry ( digital) in India ( as there is growth in food industry)

Michael Brill Technology startup exec focused on AI-driven products

April 26th, 2015

With the market size a puny ~ $15B and shrinking, lots of big competitors, complex and expensive licensing issues... you can see why recorded music wouldn't get most investors excited. 

Barry Coffing Founder/CEO at WeGet Artists

April 26th, 2015

The Bay area has lost countless millions in music and may lose more because they don't understand music licensing and rights. There are some real ways to streamline these to take advantage of the amount of great digital content. Music is still the #1 driver of views of YouTube and a key component of video, tv, games & films.

Michael Brill Technology startup exec focused on AI-driven products

April 26th, 2015

Certainly agree with Linda that it's not a binary thing... an incredible idea/team/execution can overcome a generally negative bias. Not sure how many of you recall investors writing off the entire search space in the late 90s and shrugging at Google. Look, software is magic, so anything is possible. Just making that magic in a relatively small, shrinking and highly-competitive market is hard.

Daniel Benveniste Founder, CEO at Startup-Genius

May 2nd, 2015

Roey - Check out Larry Marcus at Walden- Great Guy and one of the best Music Investors out there...
 
https://www.linkedin.com/pub/larry-marcus/0/649/a18

Robert Hurst Robert Hurst, Co-Founder at Audio Network Group

April 26th, 2015

I agree with the earlier comments that many of the VCs who have been burned did not understand the growth opportunities in the music industry and that it is a great time for those of us who have innovative sustainable business models that are challenging the status quo of the old business models and are growing the global market for music as our customer focused solutions gain traction

Barry Coffing Founder/CEO at WeGet Artists

April 26th, 2015

I will let you know. We raised $1.5M in angel money and we are now cash flow positive but we now need a series A in order to scale and grow. We have created an automated music search, discovery and licensing platform for independent music. As far as content we have 250,000 tracks from 11,000+ Labels, Libraries, & Artists from 78 countries. The interest seems to be from VC who could use what we have along with other investments that have or could be inhanced by music.

L. Marshall-Smith

April 26th, 2015

Disruption is the key word, here, Bob.