Today we are celebrating the Uncommon Musical Instrument Appreciation Day with a little report about startup funding in the music industry.
Around 3600 startups all over the world are associated with the music industry. This is a relatively small number but at least one of them has become a unicorn.
Funding of music startups is slowing down
Funding of music startups started gaining traction in 2014 and continued to grow since then. The funding of the industry in 2016 was mainly driven by the $1,4bn raised by Spotify, a music streaming service. Excluding Spotify’s funding, the industry is actually slowing down regarding both funding and number of rounds.
Europe is the heart of music industry funding
At first glance, Europe is doing extremely well compared to other regions when it comes to funding because almost $3bn or 3,8% of the total funding in the region is going to music startups.
Once we exclude Spotify with its $2,6bn in funding, Europe is still ahead of other regions regarding the share of total funding going to the industry but North America has $200m more industry funding than Europe.
Regardless of Spotify’s high funding, European music startups receive a larger percentage of the total funding in the region compared to other regions.
Portugal and Iceland are leading the music startup funding
Spotify’s funding accounts for over a half of its home country Sweden’s total startup funding. To get a more precise overview of the music industry in Europe, we decided to exclude Sweden.
Portugal and Iceland became the leaders of the music startup landscape with at least 2,2% of the country’s total funding going to the music industry.
The full industry report includes the regional breakdown of funding, a list of most funded startups, industry correlations, and much more!
The full report is completely free and available for download here: markets.funderbeam.com/reports
PS: An example of an uncommon musical instrument — THEREMIN. It is an electronic musical instrument controlled without physical contact.