New noise 2011 – funding – where to find money for artists and companies
New Noise 2011 –Music Start-up Funding Welcome to New Noise Santa Barbara 2011 On behalf of our esteemed panel of experts, we are stoked to have your presence, interest, and thoughts regarding our topic this afternoon: 440 MILLION IN MUSIC START UP FUNDING- WHERE IS MINE? Our Panelists:Sanem (Sam) AlkanDuring Sam’s 14-year career, she was instrumental to the launch of twelvehedge funds. Sam has led three fund platforms to over five billion dollars ofcombined investor assets generating tens of million dollars of revenuewithin short periods of time. Most recently Sam formed SocialGenius. Sheearned her MBA from NYU.Nhon Ma (Naan)Nhon left his position with Google and along with a fellow googler securedour first round of financing from Greak Oaks VC and Jeff Fluhr (Founder &CEO of Stubhub). As Nhon explains, “we saw a big void with music andsocial discovery in the context of the "real time or Alive web", so wedecided to launch Rolling.fm. Sure enough, their hypothesis of music andsocial discovery going hand and hand has been validated, based on whatweve seeing with Rolling.fm. Nhon is originally from Los Angeles, currentlylives in NYC.Jeffrey SaasJeffrey has been in the startup and funding realm for some time co-founding new businesses and raising $40 million in capital for barpoint.com– one of Jeff’s startups. Today, Jeff is a chief evangelist for Myxer. Myxer isone of the top 15 mobile websites in the U.S. with around 15 million uniquevisitors each month.Myxer is now entering the streaming music field with
some unique offerings.Vickie NaumanVickie leads the US business for 7digital - a London based platform thatlicenses music from all the major and indie labels in Europe and NorthAmerica. 7digital licenses their platform to enterprise level companies likeHP, RIM and Samsung, but also love start ups because they are innovatingnew products and using the API in different ways that the big multi-nationals. 7digital partners with AudioVroom - Sam co-founder is on thepanel. AudioVroom uses the 7digital music catalog to power their DMCAlicenses.Vickie tells me that they do love startups and are selective about who theychoose to work with: key criteria for 7digital are companies focusing on building a great UI have an understanding of music rights aware of the cost and complexity of digital musicQuestionsIt seems like one of the key questions New noise stakeholders have is “howdo I differentiate myself, my product” – how do I rise above the noise -product has to be greatHow a startup gets from idea conception to launch and eventuallyflourishes.Jeff – mobile industry.How has mobile impacted music consumption and how should anentrepreneur incorporate mobile into their business strategy.Consumers market – seemingly unlimited choice. 25% of downloadedapps get regularly used.Use is dictated by the quality of the product…
Vickie: talked to almost 100 startups – lots of innovation – startups trying tofix a problem, building a better Pandora, focusing on social media, music inpublic places. Who has the capacity to make this succeed. Need tounderstand rights, launching, sustainability.Nhon – the majority of Google products fail, even with their resources anddatabase. Iteration – it’s all about… talk to your user base – to help shapethe products.Sam – live review is important. Feedback loop. Looking at how dotsconnect – operational - license – marketing… have to have theexperience/big picture approach for the business. Team.So many things can go wrong.Jeff: Things you can control are perfect. User experience, usability.Things can you can’t control. Anticipate as many of these things aspossible.Designer, engineer, etc.Connect the dots between the value of the product and what the consumercares about.Competition should not be a reason not to get into the market – especiallyin the field of entertainment.Jeff: 6% of total radio listening in the U.S. is streaming.Startups follow the buzz.Vickie: Think long term - music is not short term.Vickie: 40 years established standards and behaviors with music, listeningto radio. Then there’s the subset of people willing to pay.
Sam: Era of products is changing to the era of experience.Vickie: Focus on a specific area, verticalized.Nhon: Value proposition – shape your visionJeff: creating a new market is challenging, vs. attaching to an existingmarket.Vickie: Go after something you know. Focus on what you know.Sam: Music – everyone has an opinion. What the user wants.Jeff: Have to have the passion.Sam: Product is really appealing. On her product – you don’t have toknow.Jeff: Core user experience – listening in real time…