Next Big Sound (a/o May 16th):
Maybe the next $100 million round is right around the corner. Or, maybe those outrageous gambles are just a memory.
Total music startup financing, YTD, 2011.
Signs of a slowdown have been showing for months. "A fundamental mismatch is now starting to show," the Wall Street Journal reported back in October. "While scores of web companies were founded in recent years, there isn't enough venture capital to keep all of them going indefinitely."
This matches some broader venture capital momentum. In Q3, VC financing hit its lowest levels since 2003, according to the National Venture Capital Association (NVCA), and there's evidence that similar problems are hitting the current fourth quarter. In music, October was mostly flat, while Smule and Schematic Labs helped to power a modest November bump.
Yet December has been totally uneventful, despite being nearly half-over and careening into the holiday hiatus. Here's a complete list of financing rounds this year, as tallied by Digital Music News. The broader annual financing figure is now approaching $458 million (as of December 11th), but is unlikely to cross the once-certain half-a-billion mark.
theswordthestreets Monday, December 12, 2011
Well Eventbrite and Spotify are amplifying the numbers from May and June respectively, so perhaps the implications are not as extreme as this article makes them out to be.
Maxwellian Monday, December 12, 2011
I think those are the prime examples of the bubble. Is anyone popping another $100MM on Spotify for another go round?
::MW
adalo Monday, December 12, 2011
Marcato Digital (marcatodigital.com) - the company that builds web based productivity solutions for artist managers and music festivals also announced a $500,000 round in Q3 on 2011.
http://marcatofestival.com/blog/marcato-musician-marcato-festival-secure-500000-in-financing
@CPonticas Monday, December 12, 2011
Super interesting article!
@creativexscape Monday, December 12, 2011
Tyria Whitaker
Less specialized competitors.
@HeatherBadower Monday, December 12, 2011
Shocking that nearly half-a-billion is a downturn.
@JerseyGirlmboss Monday, December 12, 2011
Great post.
laundering money Monday, December 12, 2011
You call that a startup, but my accountant calls it a set-up.
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