… and how MusicTech is on the verge of exploding
I recently had the chance to see a ranking of the top 50 songs of 1991 ranked by their popularity. What really surprised me in it was that 5 bands comprised over 40% of the list. Can you guess which ones?
Fast forward 30 years and the world has changed. The switch to digital music and personalized playlists caused the market to fragment to the point where most of us share little if not no overlap with our friends playlists. While we as consumers benefited greatly from this change, allowing us exposure to artists and exciting music we would not have listened to, the entire music industry had to re-invent itself in light of the new technology.
With the addition of millions of new artists annually, IndieFlow’s mission was to enable and empower all independent artists, granting them capabilities formerly accessible only to leading artists that signed with the top labels. these capabilities include: Music creation workflows and collaboration tools, digital distribution tools, music licensing and royalty management and event scheduling.
As a mentor in Techstars Tel Aviv, one of our partners (Ohad) worked closely with IndieFlow during the accelerator three month program and was wildly impressed by the team, the vision and the early traction. After a few meetings with all partners here at the 5 eyes ventures, we knew we wanted to be a part of IndieFlow. While there are many more stories to be told about our interaction with the company founders (Elad & Omer), we wanted to share the main reasons leading us to not only invest in IndieFlow’s pre-seed round but actually taking the lead on it.
Here is why we chose to invest in IndieFlow:
Market: B2B SaaS product for independent music creators. Huge disruption of an evolving market.
Lead: Opportunity to own a large piece of the company; strong upside
Traction: incredible early ARR (tripled in 3 months)
Founder market fit: both founders come from high growth startups and creator economy backgrounds. The CEO is also an active musician.
The more we work with young startups, the more we got to know and fall in love with the creator economy, The “creator economy” — the platforms and tools that allow creative individuals to share content, build an audience and make money in various ways — is now worth over $100bn. There are an estimated 50m creators around the world” And music plays THE pivotal role in driving the creator economy forward. This made IndieFlow all the more appealing as an investment.
Rock n’ roll