Music Tech Funding: 8tracks, Exploration And A Fundraising Tip From Bop.fm’s CEO
This was a busy week for funding news. In addition to SeatGeek, KKbox, Rockbot and JoyTunes, 8tracks was revealed to be closing a $1.28 million round and Exploration announced $5 million in funding. Plus, a bonus for the week came in the form of a fundraising tip from Bop.fm CEO Shehzad Daredia.
8tracks' New $1.28 Million Round Revealed
8tracks, whose "Internet radio [is] created by people, not algorithms," was revealed to be closing a $1.28 million round of new funding according to an SEC document:
"Up until now the company has not only survived off of $1.5 million in funding, but is also profitable — not an easy task for most music startups…Today’s filing shows that the total funding round amount could end up being a bit higher at $1.4 million when it finally closes."
Exploration Receives $5 Million In Funding
Exploration, which "exists to help writers, artists, labels, publishers, media companies, and those that represent them get the most from YouTube," recently announced a funding round of $5 million from unidentified sources.
The money will allow Exploration to gives advances to clients on expected royalties making Exploration the "first digital rights company to offer such advances."
A Fundraising Tip From Bop.fm CEO Shehzad Daredia
"A tactic that’s worked for me when fundraising is to create the perception of time pressure so investors have a forcing function. A high-risk, high-reward way to take that one step further is to very politely and diplomatically acknowledge that the VC is probably not well-equipped to make a decision fast enough to meet your timeline."
"For example, stating, ‘I know you guys must have a process to go through, so I understand if you can’t make our timeline.’ Issuing such a subtle, playful challenge to one VC resulted in them literally running after us in the parking lot shortly after our first meeting and saying, ‘We’re in for $2 million – is that fast enough for you?'"
[Thumbnail photo "Fundraising" courtesy Maik Meid.]
More:
- SeatGeek Raises $35 Million From Big Name Investors: Nas, Peyton Manning & More
- Music Streamer KKbox Raises $104 Million For International Expansion
- Rockbot Scores New Funding From Universal Music, Detroit Venture and More
- JoyTunes Raises $5 Million, Gives Registered Teachers Free Access
Hypebot Senior Contributor Clyde Smith (@fluxresearch) recently launched DanceLand. Send news about music tech startups and services, DIY music biz and music marketing to: clyde(at)fluxresearch(dot)com.
