One of the aspects of the music industry’s return to growth is the willingness of music companies (and, indeed, individual artists) to invest in music/tech startups. With that in mind, a feature in the New York Times interviewing venture-capital firms about the investment market makes for interesting reading.

Its proposition is that the startup-funding market was a little overheated in 2018, and that if it cools down somewhat in 2019, that may be a spur for more investments. “Many venture investors are already preparing for a downturn. Some are setting aside money to pounce on investments and are preparing to write bigger checks with the expectation that new investors who flooded in in recent years will flee,” it suggests.

One VC, Sandy Miller from IVP, even suggests that startup valuations will fall by anywhere between 10% and 40% this year – which in his company’s case, would also be a spur to make more investments, rather than fewer. This may all be a bit worrying for startups, but for music companies and artists mulling possible investments, it could be a good thing: opening up more opportunities to back interesting startups.

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