Don't call it a bubble-pop! But music-focused financing is down a lofty 37 percent on the year, according to stats compiled by Digital Music News. This includes the range of venture capital, angel, and broader private equity funding, based on rounds we could confirm with the companies. The year-to-date count (as of July 20th) now stands at $256 million even, a number that includes a monstrous, $50 million round for Soundcloud in January and a downright Herculean, $135 million round for Sonos in June.
And, there could be another 'mini-bubble' in the works. Indeed, June has been one of the biggest in recent memory for music-related startups and companies. Still, that wasn't enough to surpass a comparable tally of nearly $406.5 million at the same point in 2011.
Signs of a fresh bubble ahead are hard to miss. Outrageously large rounds for Spotify and VEVO are expected, if Sonos hasn't already convinced you.
And, these ransom-drops typically happen at random chronological moments. For example, the grand total for 2011 ended up being $462.6 million, with most of it happening in the first half.
Here's the tally of all the 2012 rounds so far. This doesn't include rumored and unconfirmed rounds, of which there are certainly a few.
Simon Thursday, July 19, 2012
That is not music financing, that is internet business financing.
It would be music financing if some musicians were at the receiving end of things.
Can't be that hard to understand the difference?
Malna Thursday, July 19, 2012
This is as every bit music financing as anything else. These companies represent many new distribution methods and platforms for current musicians. Musicians have the ability to be at the receiving end of these developments.
I do agree though, the title of this article is misleading. This is a summary of VC expenditures in regards to new online music related businesses. It does not seem to account for companies like Google, Apple, CBS, or other RIAA exenditures.
jw Thursday, July 19, 2012
What's up w/ March, May, April, June?
paul Friday, July 20, 2012
I'm not sure exactly why that happened, but somehow the x-axis reordered two months. Anyway, it's updating.
Visitor Thursday, July 19, 2012
The thing that pisses me off is some of these startups raise millions without having any business or revenue model whatsoever. Are VC's just handing out checks for anyone with a Turntable FM ripoff or what?
Artist Friday, July 20, 2012
How much of the VC money goes directly into the pockets of the major labels for licensing?
How much is actually used for normal operations?
Why don't the VCs just pay wellfare checks directly to the labels?
Malna Thursday, July 19, 2012
Also, what are the sources for these figures? They don't seem very all encompassing.
balbers Thursday, July 19, 2012
Dang, it's so topsy-turvey that May comes before April now. Crazy.
Casey Thursday, July 19, 2012
"The year-to-date count (as of July 19th) now stands at $256 million even, a number that includes a monstrous, $150 million round for Soundcloud in January and similarly-massive, $135 million round for Sonos in June."
I may be missing something, but $150 million and $135 million combined are already more than $256 million.
paulr Thursday, July 19, 2012
It is actually $50mm, I typo'd in that sentence. It's correct in the spreadsheet and elsewhere.
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truly Tuesday, July 24, 2012
This is not surprising. People who are RICH, and smart, and good at MAKING MONEY see how lame this industry is and refuse to lose their money when there are no clear ways to make returns. Just lots of lies and scams.
Many "angels" use to get involved for the fun and excitement of it, but even that is gone because the "leaders" in this industry steal from, starve, and mentally abuse the creatives that make it happen. There is no fun to be had... it's a bunch of crabs in a bucket. And LOTS of bottom-feeders.
When it comes right down to it, the "manufacturing" mindset of making music and turning a profit with it is lame, lame, lame. It also shows how misguided the business models are. There are some things about the marketing of music that can be structured like a "real" business, but ultimately it is a completely different type of business and needs to be respected as such.
For all the wannabe "executives" protecting their "positions"-- you should realize that you are being tricked-- no matter how much you think you have joined the secret ranks. This industry eats dummies alive and uses them as a freakin MOAT!! HAHAHAHAAHAHHAA!!!!!! LMAO