Music related startups received lots of funding in 2011. According to Digital Music News, who kept a tally going all year, startups received $458.8 million in funding last year. That includes $100 million for Spotify, which launched in the US in July.
It also includes $77 million for Beyond Oblivion, an obscure service that many have never heard of, that went belly up this week. Beyond Oblivion had received a ridiculous $87 million in total in funding, and counted News Corp as one of its investors. The service never launched. Boinc, as it was to be called, was planning to offer both ad-free and subscription fee cloud based music streaming which would be paid for by manufacturers of mobile phones, computers and other devices. The huge funding it received and the fact that it spent it all and went bust before launching is causing some to speculate about another online investment bubble (not to mention the sanity of News Corp.)
The new year started off with some new funding for Berlin, Germany based SoundCloud, which just took $50 million from Kleiner Perkins Caufield & Byers, the firm that tech trend expert Mary Meeker is partners with. Last year Meeker predicted that online music would be the next “big thing.” Fred Wilson’s Union Square Ventures is also invested in SoundCloud, a service that enables anyone to record, upload and share music.
Targetspot, MOG, Rdio and Turntable.fm are other Internet radio related services that landed funding deals in 2011. The complete list is here, and below: