Music Capitalists 2.0

Ever heard the term, Venture Capitalists? Businessman?

For many music industry folk (musicians included) a venture capitalist and his/her procedures have nothing to do with the music business – so why do I even mention it?

Venture Capitalists (VCs) invest money and resources in start-up, emerging, and high growth companies (or ventures), with the anticipation that they will get paid back (ROI – Return on Investment) compounded interest (5X – 10X their investment) in a 3-7 year period of time.

How are Record Labels, Music Publishers, Managers, Agents, and other pros any different than a Venture Capitalist when it comes to finding, investing in, and partnering with you?

THEY’RE NOT DIFFERENT.

So, what does this mean to the aspiring (or established) musical act who wants to get noticed, signed, booked or promoted?

It means – start viewing your music / brand as a start-up company, and you’ll start to see what I mean – and get closer to success. Are you surprised? Most musicians and bands I talk to think its all about the Music. Well, unfortunately that’s not the only thing that’s critical in the decision-making process between Industry Professionals (Agents, Managers, Record Labels, Venues, etc.) and Music Talent.

VC’s and Music Industry Professionals look for the following in the next act:

1. Differentiation (How unique is the act?)

2. Market Size (How large is their fan following? Where?)

3. ROI (Does this act, or can this act produce a return on my investment?)

4. Musical quality (Is their product demanded for today’s market?)

5. Payback Period (How long would it take to get paid back?)

Answer these questions – or start focusing on achieving strong results for these, and you will win.

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