CEO of Music Xray
Closing Panel : So you are thinking of launching a music start up? Don’t, here’s why:
Since 1997, according to PitchBook, approximately 175 digital music companies were created and funded by venture investors. Of those, approximately 33 were acquired by larger companies, often for less money than their investors put in. Of those who have exited, I believe only seven achieved meaningful venture returns for their investors by returning more than $25 million in profit to their investors (Last.FM, Spinner, MP3.com, Gracenote, Thumbplay, Pandora and possibly The Echo Nest), representing an investor success rate of only approximately 4%—far below that of other internet and technology market segments.
(source : David Pakman, VC at Venrock)
This session will highlight the latest stats & discuss why music start-ups are so unsuccessful.
You might not like what you hear but it could save you a whole lotta trouble.