The latest report from the US-based National Venture Capital Association reveals that VC funds there only raised $1.7 billion in the second quarter of this year – down 82% year-on-year from $9.3 billion in Q2 2008. It’s not good news for startups – and particularly music startups, who are facing tough questions around their business models and legality. That said, Pandora did raise a reported $35 million earlier this week, so funding is still available for some startups in our space.

EarPods and phone

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