{"id":1750,"date":"2023-04-25T02:35:58","date_gmt":"2023-04-25T02:35:58","guid":{"rendered":"https:\/\/ctlsites.uga.edu\/mist5720\/?p=1750"},"modified":"2023-04-25T02:36:00","modified_gmt":"2023-04-25T02:36:00","slug":"a-continuation-of-mist5720-mindset","status":"publish","type":"post","link":"https:\/\/ctlsites.uga.edu\/mist5720\/a-continuation-of-mist5720-mindset\/","title":{"rendered":"A Continuation of MIST5720 Mindset"},"content":{"rendered":"\n

Although our speaker series has come to a conclusion in the classroom, I wanted to encourage everyone to continue the same act of seeking out advice and insight from notable people in whatever community you want to join professionally. I love listening to music business and technological innovative podcasts to stay informed on the current state of the market. Namely – Trapital – is a podcast hosted by Dan Runcie, that discusses Web3\u2019s place in the music industry. Here are my takeaways from an innovator in the field I am partial to – Matt Pincus.\u00a0<\/p>\n\n\n

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\u201cthe first ever diversified investment company focused exclusively on music businesses\u201d<\/p>\n\n\n\n

Let\u2019s take entrepreneurs out of the traditional business archetype and redirect the definition to a niche line of work. Matthew Pincus is an American, music publishing investor who is making waves in the music industry from a business perspective. He is most notable for founding SONGS, an independent music publishing company, representing artists like The Weekend, Lorde, and Diplo in the repertoire. His strategy for acquiring old catalogs from major labels combined with his music startup focus leveraged him into a point of contention with majors. With his exit, \u201cSONGS became one of the highest-returning investments in a startup music publishing company, generating a 27% IRR on a total capitalization of just over $20M.\u201d However, setting aside his many various other ventures, Pincus has set his entrepreneurial mindset on a music investment firm with Liontree \u2013 MUSIC. Raising $200 million, this holding company will make long-term investments in music enterprises and startups, most commonly in combination with technology. <\/p>\n\n\n\n

To quickly define: a holding company is an umbrella company (i.e. an LLC or another corporation form) that acquires and retains the authority of company interests. Those who are controlled are labeled, subsidiaries. <\/p>\n\n\n

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MUSIC\u2019s acquisition intention will remain central to \u201c[\u2026]the technology sector, record labels and music publishers, and companies dedicated to Web3 innovation[\u2026]\u201d All in response to the oversaturation of financial and business influence in the industry. Pincus wants to return music from being described as an \u201casset\u201d to \u201cassembling humans.\u201d Since 2019, MUSIC has invested in firms like Splice and DICE.<\/p>\n\n\n\n

Splice: is a cloud-based music creation and collaboration platform [\u2026] which includes a sample library, audio plug-ins on a subscription basis, and integration with several digital audio workstations. <\/p>\n\n\n\n

DICE: a ticketing platform that democratizes live music publication and accessibility <\/p>\n\n\n

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Pinus says \u201cGoldman Sachs people think streaming will go up for forever\u201d, he suggests this thought may have fault. His thesis area suggests that streaming introduces new modes and mediums to emerge with the purpose of connecting artists with fans. The relationship between in-country and diaspora movement of music is what he wants to address with this company. As a result, he wants to have his finger on the pulse of the music industry innovation.\u00a0<\/p>\n\n\n\n

Takeaways: <\/p>\n\n\n\n

\u2022 Always manage the working capital of the business<\/p>\n\n\n\n

\u2022 Understand the market you are interested in and discover how many deals you can make<\/p>\n\n\n\n

\u2022 Two types of music business employees: \u201cpeople who came up through the building\u201d and \u201cfeed in the wild\u201d<\/p>\n\n\n\n

\u2022 Systematic A&R: \u201cFind reoccurring success through longevity and development \u2013 funnel of a group of things that might work\u201d<\/p>\n\n\n\n

\u2022 Majors\u2019 Perspectives: \u201cSeeing the shiny pennies and grabbing them no matter the cost and paying a lot for something predictable\u201d<\/p>\n\n\n\n

\u2022 Independents\u2019 Perspectives: find artists really early and develop them, what makes a good story in a good market <\/p>\n\n\n\n

\u2022 There are not really enough good talented people in A&R: you have to know everybody and know how to create a feeling <\/p>\n\n\n\n

\u2022 Music technology: people are learning equipment quicker, democratizing music<\/p>\n\n\n\n

\u2022 All about digital marketing <\/p>\n\n\n\n

\u2022 \u201cI went to Columbia business school and I didn\u2019t get one job interview coming out of the school, no one trains you.\u201d<\/p>\n\n\n\n

\u2022 There are opportunities to bring in outside capital [\u2026] in a nonconventional way<\/p>\n\n\n\n

\u2022 What makes an entrepreneur – brings on really good talent <\/p>\n\n\n\n

\u2022 Theme: How do we make music more usable<\/p>\n\n\n\n

\u2022 Everyone provides value<\/p>\n\n\n\n

\u2022 \u201cIt takes a village to build valuable stuff.\u201d<\/p>\n\n\n\n

\u2022 Entity formation: aka partnership; this is where the music industry is headed<\/p>\n\n\n\n

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Music Industry Moves: Matt Pincus Raises $200 Million for Music Investment Firm<\/a><\/h4>

Matt Pincus, founder of Songs publishing, has raised $200 million for his Music holding company to make long-term investments in a variety of music enterprises. The company, initially capitalized with $200 million, is a partnership between Pincus, LionTree, JS Capital Management and Schusterman Family Investments; it was founded as a joint venture with LionTree in 2019 and has invested in Splice, Dice, and others.<\/p><\/blockquote>