Amid talk of an economic crunch for startups, and even some well-established firms struggling to raise money as VCs start to circle their wagons, the music investments market isn’t feeling the freeze just yet. Two separate announcements, in different facets of that market, offer the latest snapshot.
Music is the investment fund founded by Matt Pincus, the publishing exec who sold his Songs Music Publishing company to Kobalt in 2017. Music has taken stakes in several music/tech companies including Dice, Splice and Hifi, and now it has raised $200m for its next moves.
The funding comes from Liontree, JS Capital Management and Schusterman Family Investments, with Music saying it will be used to invest in tech startups, labels and publishers, and companies working on “web3 innovation”. Given the amount of startups springing up and seeking early-stage funding in the first and third of those sectors, $200m could go a long way.
Meanwhile, back in the still-fizzing catalogue-buying world, Justin Timberlake is the latest musician to cash out on his back catalogue, via a deal with Hipgnosis rumoured to be worth just over $100m. It’s his songwriting catalogue that’s being acquired: 200-odd songs written or co-written since making his first break with boy-band NSync.
The crunch afflicting tech companies’ share prices (music streaming services included) has yet to have as sudden an impact on music catalogue valuations, although it would be wise not to jump to conclusions on songs being ‘recession-proof’ assets for a few months yet, given the economic wobbles across the world.
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