How a Little Hungarian Music Startup Scored $1.7 Million

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Digital music is technically a global industry, yet big funding often goes to companies in major hubs like Silicon Valley, New York, or Los Angeles.

But Hungary?  That’s right: the latest funding round was actually grabbed by the Budapest-based 3G Multimedia, a backend, white label startup that specializes in streaming music services.  The $1.7 million Series A, confirmed to Digital Music News by the company, comes from PortfoLion, owned by major banking group, OTP.

This could be another fluffy chapter in a frothy industry stage.  We’ve already counted more than $35 million in year-to-date financing, a tranche that include a questionable $17 million for Rdio.  Or, maybe not: streaming, cloud-based music also has an audience in ISPs, handset manufacturers, and other B2B targets.  On top of that, this is a play outside of the crowded US, and perhaps these guys are sniffing a regional opportunity.

Specifically, that target includes the “CEE” (Central and Eastern Europe) and EMEA (Europe, Middle East, and Asia) markets.  According to head of business development Daniel Molnar, 3G is planning to use the Series A to push into regions like Russia, Poland, and Turkey.