Investments and Acquisitions

September 03, 2010

musiXmatch: next generation song lyrics API

musiXmatch (mXm) is a new startup that's aiming to build the next generation song lyrics API, providing detailed metadata about the artists who performed it, the genre, influences, related artists, and digital rights management for clearing content for distribution. The company has partnered with MusicBrainz to help acquire metadata, and recently raised 400K EUR (about 500K USD). While musiXmatch is presently a restricted alpha product, additional features will include:

  • search lyrics using either unstructured queries or open source identifiers such as MusicBrainz;
  • take advantage of metered search-engine friendly lyric displays without the worry of copyright infringement;
  • obtain a complete list of performing artists, organized and filtered in a variety of ways, including biographies and images;
  • obtain a complete discography for each performing artist, complete with release dates, tracks and cover art

MusiXmatch

June 14, 2010

Sonicbids Acquires ArtistData

If you haven't heard already, Sonicbids has acquired ArtistData. It's a smart acquisition for both companies, and their combined services will create an even more comprehensive solution for artists, so many congrats guys! For detailed information about the acquisition, please read the story on Hypebot.

Btw, when your company has numbers like these, you will get acquired.

April 08, 2010

Music Tech Investments Up in Q1 2010

The first quarter of this year has seen significant venture capital activity in music technology - almost 110 million in transactions. As a follow-up to my post yesterday about the M&A deals for Q1 2010, below is a brief list of the music tech investments I'm aware of from January 01, 2010 through March 31, 2010. As you can see from the charts below, this a significant increase from 2009 and 2008.

Again, the information I collect for these kinds of posts is based on investments I've been able to find from public sources, so it may not be complete and/or accurate. Also, please let me know if I missed any deals, as I'm going to publish a free detailed report in less than 2 weeks.

Btw, I've included additional sectors such as music electronics and music hardware manufactures.
Number_of_first_quarter_investments_2008-2010
First_quarter_music_tech_capital_invested_2008-2010

April 07, 2010

Q1 2010 Music Technology Mergers and Acquisitions

Below is a brief list of music technology related M&A deals for the first quarter of 2010. What did I miss? I'll post Q1 investments tomorrow.

April 05, 2010

Help Fund Music Technology Startups via Musicians for Music 2.0

Charles McEnerney, producer of Well-Rounded Radio is working on a project to help fund music technology startups called, Musicians for Music 2.0. Charles explains that because angel and/or venture capital is not always an option for music tech companies providing services such as recommendation, online radio, artist apps, etc., Musicians for Music 2.0 seeks to become a seed investment source, funded by the music community.

To help get this project off the ground and begin funding up to 12 startups this year, he has partnered with Kickstarter to raise $1K for the initial communications with prospective investors, an amount he's about to pass. Below is a video describing the project, as well as a SlideShare presentation with additional info.




February 17, 2010

Geographical Disbursement of Investments in Music Technology Companies for 2009

The following three charts represent where capital for music technology companies was invested during 2009. The charts are based solely on known investments, and only include companies that received angel, VC and/or strategic capital. Additionally, each chart simply represents the total number of companies that received an investment per state, country and/or region; they do not represent the amount of capital that was invested.

United States Europe Global

January 01, 2010

Music Tech Investments for 2009

Similar to last year, below is a list of music tech related investments and M&A deals for 2009, sorted from the most recent to the oldest. If I've left a deal out, please add it by commenting to this post.

Fourth Quarter 2009 (over $50,900,000):

Third Quarter 2009 (over $149,900,000 not including the EMI or Bertelsmann deals)

Second Quarter 2009 (over $84,700,000):

First Quarter 2009 (over $43,775,000 not including the Live Nation / Ticketmaster merger announcement):

A Few Brief Observations:

  • if these numbers are correct, than the above represents almost $4 billion in transactions, which is more than last year
  • many of these deals did not disclose the amount, and the above list may be missing a deal or two
  • even if you remove the EMI, Bertelsmann and Live Nation / Ticktemaster deals, it's still over $329,275,000 in transactions, which is also up from last year
  • the second half of the year was stronger, with the third quarter being the strongest - the second half also led in terms of acquisitions as well, with most taking place in the fourth quarter, which may be an indicator of more acquisitions to come in 2010

2009 turned out to be an exciting and active year for the music industry, here's to wishing you much success in 2010 and beyond!

November 17, 2009

Win Seed Capital for your Music Tech Startup

Got a music tech startup or idea that needs capital for a prototype or continued development? Or would you like additional exposure to Angels, VCs and large corporations like Yahoo and Coke? Then consider pitching at Startup Riot in Atlanta February 17, 2010. In its 3rd year, Startup Riot is quickly becoming a significant event for entrepreneurs and investors alike, and this year looks to be the best yet. Here are 5 reasons why you should consider it:
  • If your music tech startup is located far from Atlanta, Sanjay is providing a travel assistance fund, but apply early as it will not last long
  • They're expecting 100 Angels and VCs from around the country to attend
  • Unlike some pitch events, Startup Riot is Free to present and you'll get a Free booth to demo your product as well, if you're selected
  • At least $1K investment in the overall winner, as well as an equal amount in services, but Sanjay expects those numbers to grow substantially by the day of the event, and the award will be determined by the audience
  • Will be held in the Egyptian Ballroom of the Fabulous Fox Theater, and there will be a great free after party for attendees and presenters
For more information, go here.  Btw, we presented last year so we're not eligible, so no need to worry about hometown competition from us :-)

September 23, 2009

Band Metrics Receives an Investment from the Georgia Tech Edison Fund

Happy to announce this morning that we've received an investment from the Georgia Tech Edison Fund. We're quite excited as this is a tough economy for raising capital, and we've got a ton of work to do like improving our visualizations, increasing the accuracy of our data collection, enhancing our UI, adding more data sources and features, moving into the cloud, releasing our public beta, and much more - all before the end of this year, not to mention 2010!

So, if things seem a little quiet at Band Metrics during the next 8 weeks it's because we're buried in code and building out our next release... stay tuned, as I think you'll like what we've got in the works.

You can read the press announcement here.

September 07, 2009

Music Tech Investments to Date

As a follow-up to my post from last week, below are music tech related investments, acquisitions and M&A deals to date. If you know of others, you can add them by commenting to this post:

Third Quarter 2009:

Second Quarter 2009:

First Quarter 2009:

September 03, 2009

Kickstarter: A Launching Pad for Rank 'em

SimpleLogo2 The following is a guest post from Adam Wexler about his experience with Kickstarter and how it helped him raise almost $2,500 for his music startup, Rank 'em.



I initially heard about Kickstarter's crowdsourced funding platform from a friend, but it wasn't until popular social media VC, Fred Wilsonmade a mention in his blog that I proceeded to check it out. 

I originally looked at the platform in terms of assisting the Minor Kings, a great edgy rock band out of Nashville, TN that I help manage. Over the next couple months, they'll be putting the final touches on their official debut album & getting on the road for the first full-leg tour. Kickstarter provided great options to fund either pursuit.

On Kickstarter's homepage, they explain that the site "is a funding platform for artists, designers, filmmakers, musicians, journalists, inventors, explorers..."  I personally believe that the most important part of that entire phrase is the "..." at the very end. As a startup themselves, they know that they don't exactly know where the platform is headed, but they want the community to help drive their future.

When I took some time to think about the platform, I realized that it had the potential to be a great resource for my own digital music startup, Rank 'em. As we described on our Kickstarter project page, our startup has been in development for over 24 months and 100% bootstrapped the entire time. Considering nobody from the core team has taken any pay to date, our burn rate is significantly low, and we don't require much money to continue building upon our foundation that we initially launched in Late-February.

As Indie Music Tech already discussed, it has been a highly productive platform for a number indie artists thus far. As a consumer facing platform, we have our own "fanbase" of supporters that want to see Rank 'em become the ideal resource for accelerating music discovery that we firmly believe is possible.

Considering our hosting fees have been eating into our pockets that are not all that deep, we figured we would try to leverage on our supporters to help give us the opportunity to scale the site at a quicker rate. You never know what you can get without asking, right? 

Under Kickstarter's setup, you must raise at least your initial goal amount. We set a goal that we believed we could reasonably hit in a short period of time: $1,000 in 30 days. Little did we know, but we were able to hit $1,000 in just one week!

Unfortunately, it becomes harder to justify why you need additional funding once you've hit your initial goal. Additionally, considering Kickstarter is invite-only themselves, their userbase is limited so we were forced to rely almost exclusively on tapping into our existing networks. Either way, we were able to raise upwards of $2,500 from over 50 backers in just a month's time. 

We're now in the position to launch our Private Beta in Mid-to-Late October, and potentially release our platform to the general public before the end of the year. Our model primarily relies on user adoption & inputs, and now we can finally push the platform to a wider audience without web hosting fees being an issue.

We are grateful to Kickstarter for providing the other "..."s of the world with further financial means to pursue their passions, and if you'd like an invite to Rank 'em, just request one with the following invite code: IMT

August 31, 2009

Music Tech Investments Rise in August

At the end of last year, I summarized the music tech investments for 2008, and I'll do it for this year too, as well as a midyear summary around the end of this week, but in the meantime, check out the investments and M&A deals that we're disclosed in August (almost $100 million), a significant increase from earlier months of 2009.

Even if you remove the acquisition of iLike, these deals represent about $70 million, not including deals where the amount was not disclosed, and if you remove Spotify, it's still about $20 million from nine different companies. Quite encouraging to see given the economy, and I'm surprised to see that it's more than double the number of deals that were made in August of 2008.

If you know of other deals, please feel free to add them by commenting on this post.

March 21, 2009

Music Tech Investment Companies

I was recently asked if I knew the names of some of the venture capital firms that have invested in music tech companies, so I reviewed my 2008 investment recap post, and here are the firms I found (in no particular order):

There are plenty more than just these, so feel free to add to the list.

January 13, 2009

MixMatchMusic Acquires Mix2r

MixMatchMusic just announced it has acquired Mix2r, a web app that enables electronica artists to upload their music for remixing and for creating derivative works by other electronica artists, fans and music enthusiasts. Mix2r's community of musicians, DJs and fans features more than 6200 songs and music stems.

"MixMatchMusic's combination with Mix2r adds a lot of dynamic new music to our library and brings us closer to the critical mass of stems and community needed to fuel our next stage of growth," said Charles Feinn, MixMatchMusic co-founder and CEO.

Mix2r founders Duane Nickull and Matt MacKenzie will be joining MixMatchMusic's management team. Nickull, who is a well known senior technical evangelist for Adobe, said the Mix2r site uses Adobe® Flash® Platform technologies including Adobe Flash, Flex and Adobe® AIR™. These technologies will be used to create future versions of the combined site.

"Emerging and indie artists win as a result of this combination," said Nickull. "The breadth and depth of content and the number of people contributing to it adds energy and creativity to the community, and that in turn will attract more people and more great music."

This is big news for both Mix2r and MixMatchMusic and I look forward to seeing what the combined companies will provide. Congrats to both!

Editors note: It's fairly early in 2009 and we're already seeing acquisitions. Will this be the year of M&A for the music tech community?

January 06, 2009

Some Stats on the Deals of 2008

Below are a few brief stats from the article I wrote regarding the music tech investments of 2008:

  • at present count, there were a minimum of 46 deals for 2008 with at least one deal every month except for June
  • there was an average of 3.8 deals per month
  • the busiest month was April with 11 deals, while July and August followed with 6 and 5 deals respectfully (October was tied with August with 5)
  • there were a minimum of 6 deals in Q1, 14 in Q2, 15 in Q3 and 11 in Q4; so there were actually more transactions in the second half of 2008
  • the deals originated from 12 countries, but the majority came from within the United States (35), while Great Britain had the second highest number with 6 deals
  • not surprisingly a little more than half of the deals (25) originated out of California with 13 from Southern California and 12 in Northern California
  • only one deal originated out of Nashville

December 31, 2008

Music Tech Investments for 2008

In April of 2008, I provided a list of investments in music tech companies from the beginning of the year. Below is the updated list for all of 2008, as well as my final post for 2008 (investments are sorted from most recent to least recent). If I've left a deal out, please post it here with a link to the news source and I will amend the post.

Updated January 2, 2009

If these deals and numbers are correct, than VCs and angels invested over $260 million in music tech companies in 2008, and that doesn't even include deals where the terms weren't disclosed, or acquisitions and mergers that account for more than $520 million - that's almost $800 million in music tech related transactions in 2008. Hope 2009 is even brighter, and best wishes in the new year!

December 15, 2008

BitTorrent's Future

Bittorrent VentureBeat is reporting that DAG Ventures is scaling back its investment in BitTorrent from $17 million to $7 million. This is unfortunate, as I think BitTorrent has a useful service, not to mention I'm a big fan of Bram Cohen. However, both VentureBeat and TechCrunch seem to illustrate that the move has been in the making for months due in part to changes in their business model and a growing lack of confidence in the company.

Interesting developments, but I'm not surprised, as BitTorrent's service relative to the music industry is a bit cumbersome for general music enthusiasts. That is, the average music fan is just looking for quick access to music without having to download software or participate in a P2P network, one of the reasons why web apps like Hypem, Pandora and Last.fm, as well as playlist sites like blip.fm and playlist.com have experienced massive adoption rates. Even audiophiles download lossless recordings from other places besides BitTorrent (e.g. Archive.org).

It's hard to say what will become of BitTorrent, but I wish them the best in the ever evolving music industry.

November 26, 2008

Thanksgiving from Band Metrics

As some of you already know, Band Metrics closed an angel round of funding on Monday, but I'm publicizing the news today - you can read the official announcement here. This is a huge milestone for Band Metrics, as it further validates the business model, especially in this economy. Not to mention, the investment was led by Atlanta-based entrepreneur Allen Graber, a well known technology angel, and I am deeply grateful for his trust, support and friendship.

As I spend time with my family tomorrow, I will also be giving thanks to all of our investors, friends and musicians that believe in Band Metrics - here's wishing you all, and my readers, music enthusiasts and fellow entrepreneurs a wonderful thanksgiving!

April 18, 2008

Music Technology Turns up Investment Volume: a few stats and trends

Is it me, or is music technology off to a great year! Since January (just over 100 days ago), VCs have invested over $58 million into music tech companies, and that doesn't even include deals where the terms weren't disclosed, like INGrooves. Moreover, most of these investments were aimed at companies marketing their services to the indie music industry, so that's great news for musicians and bands looking for tools to build and manage their careers. Here's a couple of stats and a quick summary of some of this activity since the beginning of 2008 (If you know of more, just drop me an email and I'll add it to the list):

updated July 08, 2008:

Technorati Chart

It looks like the music industry's tail is becoming a powerful whip! Btw, I review these kinds of music related companies here, so if you're involved with one and would like me to write about it, just send me an email.
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I was listening to the : Red Hot Chili Peppers as I wrote this post.

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