Music 2.0

Why Investors Don’t Want to Back Your Music Startup

Panelists at New Music Seminar Tech Summit.

The problem, as one philosophically-minded audience member pointed out, is that there are too many problems in the music industry. It certainly felt that way Tuesday afternoon at the New Music Seminar Tech Summit, “Nothing Ventured, Nothing Gained – A Look at the Digital Music Vertical.”

The discussion at the AMC Loews Theatre focused on the difficulty of acquiring investment as a music industry startup, the issues with music copyright laws, the free-downloading plague and innumerable other chinks in the business.

To bring an investors viewpoint into the mix, Chris Fralic, a partner at First Round Capital, explained why many financers are hesitant to back music-technology startups. Read More