Venture Capital
Mindset Ventures, an international venture capital firm that focuses on early-stage tech investments, has launched an early-stage, music-focused fund, Mindset MusicTech, aimed at the music tech sector. In announcing its debut, Mindset Music has revealed its first six investments: Audoo, un:hurd, Music AI, Aiode, ALLOY and OwlDuet.
Mindset Music is looking for startups that “enhance human creativity or improve efficiency” in the music business, partner Lucas Cantor Santigo said in a statement. “We’re looking to support companies with both capital and expertise, and give holistic support to those who are reimagining the music industry for the next generation.”
“The music tech space is extremely undervalued and has an enormous potential for disruption with AI and other new technologies,” added Daniel Ibri, managing partner of both Mindset Music and Mindset Ventures. “We plan to take advantage of this space and make a meaningful difference in the sector for the founders.”
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Mindset Music’s roster of advisors includes Drew Thurlow, former senior vp of A&R at Sony Music; music attorney Cliff Fluet; entrepreneur Tomer Elbaz; and music and tech attorney Heather Rafter.
The companies in Mindset Music’s portfolio provide tools for businesses and creators to operate more efficiently, and many incorporate AI technology. Music AI is an audio intelligence platform that provides what it calls “ethical AI solutions” for audio and music applications. The Salt Lake City-based startup’s products include stem separation and mixing mastering.
Based in Tel Aviv, Aiode allows musicians to collaborate with virtual musicians using ethically trained AI. Those musicians’ virtual counterparts are compensated through a revenue-sharing model.
U.S.-based OwlDuet calls itself an “AI-powered co-pilot for music creators.” Its production tool purports to allow users to create “Grammy-level production expertise without requiring advanced technical skills.”
Audoo seeks to improve public performance royalty reporting with music recognition technology. The London-based company works with performance rights organizations and collective management organizations.
London-based ALLOY provides information that facilitates the sync licensing process. The platform gives artists, songwriters, labels and publishers a means to set sync deal parameters and distribute sync metadata to digital platforms.
un:hurd has developed a music marketing and promotion platform that guides artists through the release cycle and connects artists with a network of playlist curators.
One of the most prominent developers of do-it-yourself music creation platforms, BandLab Technologies, raised $25 million in Series B1 financing at a valuation of $425 million, the company announced Tuesday (May 23).
The round was led by existing investor Cercano Management – formerly Vulcan Capital, the venture capital arm of the late Microsoft co-founder Paul Allen’s Vulcan Inc. Holding company – with participation from Prosus Ventures, a giant technology investor with a portfolio that includes e-commerce, delivery, fintech and education platforms.
The new funding will allow BandLab to augment its work force, offer more emerging creator campaigns, boost its support services – such as BandLab for Education – the company stated in a press release. Last year, the company raised $65 million in a Series B round that valued BandLab at $315 million – $110 million less than the latest valuation – and was led by Vulcan Capital with participation from Caldecott Music Group and K3 Ventures.
BandLabs Technologies is best known for its namesake platform, BandLab, a mobile-first digital audio workstation with over 60 million registered users. The company also owns the long-running digital audio workstation Cakewalk, which it acquired in 2018; ReverbNation, a 16-year-old independent artist services provider acquired in 2021; and Airbit, a beats marketplace acquired in February.
It competes in a growing category of cloud-based music creation tools that offer a far more simplified user experience than common studio platforms like ProTools. Like BandLab, Soundtrap, acquired by Spotify in 2017, makes creating songs an easy and collaborative process. RapChat boasts more than 10 million music creators on its feature-rich mobile app.
“BandLab serves a vital role in today’s music creation ecosystem, enabling more artists to break through at previously unfathomable levels,” Meng Ru Kuok, BandLab CEO and co-founder, said in a statement to Billboard.” This additional investment amplifies our position in today’s environment to accelerate our vision and deepen meaningful collaborations, bridging the gap between emerging talent and established industry players. We’re ready to double down on our mission, empowering artists at scale.”
Over the last two decades, independent musicians have been given digital tools that markedly lowered the barriers to entry. Digital audio workstations like Apple’s GarageBand gave anybody with an Apple computer the ability to easily record and edit audio files. Digital distribution services such as TuneCore allowed anybody to sell their music online. Now, tools to create music have been simplified to mobile phone apps and artificial intelligence-powered products – such as BandLab’s SongStarter – give the average internet user the ability to make music.
Sometimes, BandLab users have found legitimate chart success using the app’s entry-level toolkit. Last year, “Romantic Homocide,” created on BandLab by 17-year-old Houston artist d4vd, reached No. 45 on Billboard’s Hot 100 after another of his songs “Here With Me” got him signed to Darkroom/Interscrope Records. Also last year, BandLab teamed with Billboard to launch the Bringing BandLab to Billboard portal to help expose its creators to a global audience. Two artists were featured at Billboard.com as a result: The Moon City Masters and Hitha.
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