Electronic music is more than a fast-rising genre. lt also is an increasingly attractive magnet for investors. Just ask Rhapsody, the streaming service that recently bought a stake in Dubset Media, which streams dance music and helps process royalties for longform DJ content.
Rhapsody CEO Edran Rudin says Electronic music’s rising popularity around the world was a big part of the draw. “We’re a global company and can’t ignore a global genre,” says Rudin, whose service is available in 33 countries.
Rhapsody is not alone. Electronic music as an industry already brings in 56.2 billion annually, according to the International Music Summit Business Report, and there has been a hurry of new investment in the last seven months (and that’s not counting SFX Entertainment’s buying spree). Electronic Sound, an iPad magazine dedicated to electronic music, raised $293,000 from the Low Carbon Innovation Fund. JustGo, a social media management tool for the Electronic Music market, raised $1.7 million from Rosemont Group Capital Partners and Jonas Tempel, a co-founder of electronic dance music retailer Beatport. And Mixify, developer of streaming tools for DJs, landed 51.8 million from Sydney-based CMB Capital, Ministry of Sound Australia and Tommy Trash, an Australian DJ residing in Los Angeles.
Why the surge in venture capital? Western creators and companies have the ability to reach fans in untapped or underserved markets, says CMB Capital managing partner Jamie Olsen. “The artists are global in nature, and that allows them to scale quickly.”
Mixify CEO David Moricca agrees. His company operates Clubcast, a product that allows DJs to perform remotely for a club audience a world away. “Most of the talent is on the westem side of the world,” says Moricca, “but most of the demand is surging in the eastern half.”