EDMbiz 2015: Are You Looking to Run an EDM-Related Start-Up?

In a world full of entrepreneurs, people looking to have the next big idea, companies trying to make a name for themselves, a start-up can be a difficult thing to get off the ground. This week at EDMbiz in Las Vegas a panel of investors, Managing Directors, CEOs, and A&R from companies like Insomniac, SF Music Tech, Enright, Forbes, and Walden Venture Capital, offered up some words of advice on what it takes to make a successful Start-Up, how to get it off the ground, and how to keep it above water.

They started by making it very clear that originality is key. You need to create a platform that will solve a problem that has yet to be solved, or if you are trying to solve a problem that already has an answer, make yours more efficient and unique. There are many problems out there that have no answer to them as of yet, and as an entrepreneur trying to sell an idea it is your job to answer those questions. No one is going to want to invest in a company that allows you to send pictures to your friends via an app; Snapchat already exists. Maybe a social media network for individuals who love electronic music? How will you separate yourself from the channels that already exist on Facebook? You need to dig deep, be specific, cater to an audience, and find something that no one else has ever thought of. The investors know the right questions to ask, make sure you have the right answers. Their money is only as valuable as your idea.

Proceeding, they go on to speak about how if you have an idea that is just not panning out, you can always change it. You have already invested time and money into this potential start-up, don’t let up when the going gets tough. Companies like Air BnB had a rough get go, trying first to be sellers of different types of cereal. They changed the idea and look where they are at now. Having a great idea, like I said above, may not always work out if there is other competition in the market. Changing the idea is much easier than changing the team (and cheaper).

Similarly, when considering the idea of the team, it can be dangerous to blame your misfortunes on the people you work with. Sure, there may be some misfires here and there, but always remember that these are the people who have invested their time and energy into developing this idea of yours. They are there for the long run if you believe in what your doing. Don’t ruin relationships, because this is an industry built off of whom you know.

In addition, there is also the issue of becoming known and getting your name out there. Once you have the funding and have developed the idea, and developed the actual product, where do you go from there? How will people find out about your product? One strategy that the panel suggests is to show it off to some artists. If you are able to find an artist that is truly passionate about your idea the same way that you are, one tweet, one Facebook post can make all the difference. Some of these DJs have massive followings and if they tell their fans that your idea is a good one, their fans will believe it too. Just think about when someone like Deadmau5 makes a shout out on their social media about an upcoming producer and their new track; you trust them as a producer, so you’ll give that producer a shot…

However, be wary of artists just in it for the money. By paying artists to be “supportive”, you run the risk of looking like you “sold out”. Selling out is maybe not the best choice of words, but if an artist simply mentions your product with no passion behind the words they are posting to social media, it feels lifeless and audiences can tell when there is no passion. An example of this is the marketing execution of the streaming service, Tidal. This was an idea that had immense potential, but sunk due to the fact that the advertisements made it look like it was rich celebrities asking for even more money. That does not connect with the public, you can’ sympathize with the rich asking for more, but you can sympathize with a simple shout-out from a big supporter. In other words, find a supporter with a level of passion for your idea. If the investors liked it and decided to fund you, then you have something on your hands not to waste, you will find someone just don’t get your spirits down.

The panel ended with a few words from each of the executives and investors, answering the question: what is disruption, and what is the next big thing? According to them disruption is “everything”, “inevitable”, “disruptive”, “overused”, “B.S. in regards to music”. To conclude, the future will be greeted with ideas such as: voice interface, Virtual Reality and Augmented Reality, Drones, and an even larger lack of privacy. That last one is slightly disturbing, but I guess we shall see how it turns out. Watch out for more coverage on last weeks EDMbiz conference and the future of our industry!