Who's Afraid of Music Startups? Investors, That's Who.

The Digital Music News Podcast

Invest in the right music startup, and you're a billionaire. Make the wrong bet, and you're out of $5 million (or in court for five years).

But that's true for any investment risk involving new ideas and sectors. So why are investors still gun-shy around music startups and concepts?

I assembled three experts in Hamburg, Germany to help me answer this very topic. One recently sold his music distribution to Sony Music and is currently the president of a soccer club in Hamburg. Another is actively investing across numerous creative areas in Europe. And another is actively coaching and advising firms and startups in the space.

I asked them to be blunt with me. And I found some serious concerns surrounding investment dollars and music startups.

Thierry Boujard of MusicDeals told me he likes quick exits. Claudia Schwarz, VP of MusicTech Germany laughed a bit at that one, calling a quick exit in music 'a conundrum'. Oke Goettlich, who started FineTunes and sold it to The Orchard (owned by Sony Music), had a very slow exit (and bootstrapped the whole way).

And off we went...