Music companies are attracting strong funding

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If you are unaware of how music companies are doing, let’s look at how funding/investments have performed in the recent past by understanding deals that have been cracked with music companies.

There are a lot of music company start-ups that have money troubles, and gaining success in the financial sector when one is just starting out is tough. However, venture capitalists and large music companies are always on the lookout to fund companies that focus on Electronic Dance Music, given the current rise in adoption of this kind of music.


While the creation of music, generates revenue, major streaming services are also driving the music industry’s growth. Companies like Start-up Spotlight, the Midemlab Accelerator and Techstars Music, are fuelling innovation. Apart from start-ups, some artists that also came to the fore front with investment funds are – usher, David Guetta, Will.i.am in addition to the veteran investors i.e. Justin Bieber and Beyoncé.

Music companies

Even though investment exists, many a times, there remains a cultural obstacle i.e. music celebrities and companies that invest in start-ups speak to the veterans in the industry, and are usually unaware of the complications of the people working hard behind the scenes to create music. Firms like Plus Eight Equity Partners have been helping investors since September of 2017, to invest heavily in music and technology companies by evaluating business plans. Their sole aim is to bridge the ideological gap between the investors and the rising musical talent.

Quite a few companies also received massive funding to expand and diversify. Some of them are:

a) Native instruments received a €50 million funding from EMH a private equity firm in October 2017. They primarily enable technology and focus on creating hardware’s and software’s that help create music. Native instruments will use their influx of funds to improve their existing products as well as create new ones to innovate the DJ-producer experience. They will primarily focus on improving the DJ software Traktor, which essentially breaks tracks into different parts for live remixing.

b) After Native Instruments, Splice received a $35 million of series B funding in December 2017. Splice is a music creation and collaboration platform for artists and producers. Their aim is to help musicians maximize their potential. With this new funding Splice will aim at working on their collaboration piece to help artists uncover new revenue streams across market places. Splice also has a creative feature which is, its royalty free library wherein, artists can upload their sounds, for producers to play with.

c) Come April 2018, Mixcloud followed the list of companies that received funding last year. They received a $ 11.5 million funding by a holding company with the name WndrCo. With this funding, Mixcloud wants to expand globally and diversify to subscription based offerings. The company currently offers, long form and exclusive audio shows, produced by DJs like David Guetta and Tiesto, musicians like David Byrne and radio stations like The Guardian Podcasts. Their next step will primarily focus on being a global player and we can’t wait to see that happen.

Perhaps the growth in the electronic music is directly attracting an influx of investment to facilitate music creation and collaboration within the industry to create new revenue streams. What is going to be interesting to see in the coming years, is how this funding helps companies build tools for the music creators. This in turn will give rise to new talent.

Before you switch pages, tell us how you feel about funding innovation in the music making space?

Dreamer.

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