About the Author

Amanda is a mentor in the Culttech Accelerator Network and the founder of MAX Music Management and Consulting. With her extensive experience as a music industry executive and music tech professional, Amanda contributes her knowledge to support our mission of empowering the next generation of innovators in the music tech space, providing valuable insights to help startups navigate the complexities of the industry.

Starting a music tech company is an exciting journey filled with opportunities to innovate and collaborate with the music industry. The first step of any startup is to understand how the core music industry players work together in an intricate system comprising  labels, publishers, PROS, artists, managers, lawyers.

During my career I have held roles as both a music industry executive, working as a publisher, distributor and manager, and as a music tech executive with Songtradr in it’s earlier days where I experienced first hand how startups can work harmoniously with the music industry, and helped bridge the gap for both sides. 

Drawing from my extensive experience, I’ve put together some high-level business development strategies that can help your startup succeed. This guide covers essential aspects such as early-stage fundraising, onboarding artists, navigating major publishers and labels, and utilizing music legally. Let’s delve into these best practices to help you thrive in this competitive space.

1. Working with Artists

Artists are the cornerstone of any music tech startup’s success, driving the creativity and content that are essential for your platform. Establishing a strong, artist-centric approach ensures long-term sustainability and impact.

• Taking an Artist-Centric Approach: Startups often focus on meeting the needs of fans to drive customer acquisition and product growth. However, for long-term success, it’s crucial to shift some of the focus towards artists. Artists are the heart and soul of your music tech startup, and their needs should be at the core of your value proposition. Without artists, your product has no value.

EVEN is a standout example of an artist-centric platform. It empowers musicians by offering a direct-to-fan streaming model, allowing fans to pay what they want for exclusive access to an artist’s music for a limited time before it goes live on traditional streaming platforms (DSPs). Their powerful tagline, “Buy the art from the artist,” captures the platform’s mission to place control back in the hands of creators, ensuring that artists can directly benefit from their work before sharing it more broadly.

Submix takes a similar artist-first approach but focuses on enhancing collaboration within the music-making process. This platform enables musicians, producers, and audio professionals to work together on projects seamlessly, regardless of location. By creating a more connected recording workflow, Submix removes traditional barriers—like expensive studio fees, geographic limitations, and the need for in-person collaboration—giving artists more opportunities to create without constraints. It’s especially empowering for emerging artists, providing them with the tools to connect with a wider network of collaborators and professionals, helping them get a leg up in the competitive music landscape.

Both companies are redefining how artists can engage with their craft and their audience, ensuring that creators have more control and opportunities in the industry.

• Understanding the Creative Mindset: To effectively engage artists, you must comprehend their unique mindset. Artists make decisions based on emotional connections rather than mere logic. Approach artists by aligning your product with their creative vision and showing how it can enhance their artistic journey. Authentic touchpoints and emotional resonance are key to gaining their support.

• Implementing Patience and Timing: The creative world is dynamic, with artists juggling numerous commitments. Patience is your greatest ally. Recognize that artists don’t make swift decisions and that timing is everything. Present your opportunity when it aligns with their creative journey. Diligent follow-ups, respectful persistence, and understanding their pace will increase your chances of securing their buy-in.

• Navigating the Artist Ecosystem: Artists are surrounded by teams that include managers, lawyers, labels, publishers, and agents. Understanding and mastering the roles each player fulfills is essential for success. 

• Mastering the Art of Communication: Engaging artists effectively requires genuine, respectful communication that aligns with their creative vision.Foster a conversation that’s not solely transactional but an invitation to join a community that resonates with their passions.

• Providing Seamless Onboarding: Once you’ve piqued an artist’s interest, make the onboarding process seamless. Simplify administrative tasks, contracts, and technical setup to minimize friction. Artists value their creative time, and their teams have limited bandwidth. By removing barriers, you demonstrate your commitment to supporting their craft and vision.
  

2. Engaging with Major Labels

Collaboration with major labels is pivotal for accessing extensive music catalogs and fostering artist partnerships. Major labels provide artists with a global platform and substantial capital for widespread exposure. To engage effectively with them, adopt a proactive and collaborative approach:

• Transform Perspectives: View labels as allies, not adversaries. Recognize their role in the music industry’s success and adopt a constructive outlook.

• Navigate Corporate Structures: Understand the structured policies and decision-making processes of major labels. Identify the key players, such as A&R representatives and digital initiative leaders, who can champion your cause.

• Initiate Meaningful Conversations: Tailor your outreach to the right points of contact, whether at the corporate or subsidiary label level. Seek opportunities for warm introductions to establish valuable connections.

• Leverage Existing Connections: Ethically navigate existing relationships to facilitate introductions within major labels. Avoid circumventing hierarchy to maintain trust and collaboration potential.

• Demonstrate Value: Show how your technology can directly benefit major labels, enhancing their distribution strategies, data analytics, or artist promotion efforts.

• Be Open to Feedback and Iteration: Embrace feedback from major labels and demonstrate your startup’s flexibility and responsiveness to industry needs.

• Embrace Patience and Timing: Recognize the intricate timelines and release schedules of major labels. Exhibit patience and professionalism to foster a positive reputation within the industry.

3. Navigating Music Publishers

Engaging with music publishers and mastering the complex world of copyright licensing is crucial for integrating music into your platform. Here’s how to navigate this landscape:

• Understand the Role of Publishers: Publishers champion the interests of songwriters. Acknowledge the importance of songwriters and ensure they receive fair compensation and recognition.

• Prepare to Juggle Multiple Publishers: Songs often involve multiple publishers. Be ready to engage with major, indie, and self-published entities.

• Streamline Efforts with Blanket Deals: Implement blanket deals to negotiate rights for multiple songs or catalogs in one go, streamlining the process.

• Enter Discussions Fully Prepared: Educate yourself on clearing copyrights and provide detailed licensing requests. Offer equitable compensation to alleviate concerns and pave the way for smoother transactions.

4. Licensing Music

Licensing music for your music tech startup is a convoluted but essential process. Here’s how to navigate this challenging landscape:

• Understand the Rights You Need: Research and understand the specific rights (mechanical, synchronization, public performance, master use) you need based on your technology, end-users, and use cases.

• Prepare for Multiple Rightsholders: Be ready to negotiate with various rightsholders and administrators on a song-by-song basis. Complex negotiations are the norm.

• Streamline Conversations and Processes: Implement strategies to make negotiations smooth, including clear timelines, necessary documentation, and open communication lines.

• Enter Discussions Fully Prepared: Provide detailed licensing requests and offer fair compensation to foster trust and smoother negotiations.

• Leverage Technology or Experts: Utilize modern technology and expert guidance to streamline the licensing process, saving time and resources.

• Demonstrate Value to Rightsholders: Offer additional incentives beyond royalties, such as marketing opportunities, preferred placement, or cross-promotion.

• Make Initial Terms Short: Propose short initial licensing terms to allow rightsholders to test your platform, reducing their perceived risk.

• Be Flexible with Royalty Splits: Offer favorable terms to rightsholders, especially with new products, to incentivize licensing agreements.

5. Early-Stage Fundraising

Fundraising is essential for your startup’s growth. Here are key tactics for successful early-stage fundraising:

• Craft a Clear and Concise Deck: Ensure your pitch deck is clear, succinct, and highlights your value proposition, market opportunity, and competitive advantage. Showcase traction and case studies to demonstrate progress.

• Have Supporting Materials Ready: Prepare detailed financials and key performance indicators (KPIs) in advance to keep the conversation momentum going.

• Avoid Overpromising: Present realistic, achievable goals based on a deep understanding of the industry. Avoid grandiose claims about revolutionizing the music industry.

• Build Genuine Relationships: Treat fundraising interactions as opportunities to build genuine relationships. Investors are potential long-term partners, advisors, and mentors.

• Identify and Cultivate Champions: Focus on building relationships with young analysts who can champion your cause within their organizations.

• Be Patient and Strategic: Start fundraising with sufficient runway to navigate the process comfortably. Avoid approaching investors at the end of your financial runway.

In Summary

Success in the music tech industry requires a multi-faceted approach that prioritizes artists, builds strong relationships, and navigates complex industry structures. By taking an artist-centric approach, understanding the creative mindset, and mastering communication, you can effectively onboard artists. Engaging with major labels and publishers demands strategic collaboration, patience, and a deep understanding of industry dynamics, while careful planning and strategic execution are essential in order to secure the music rights needed to propel your startup forward.