Entertainment
Music Industry Funding Saw 27% YoY Growth in Nov 2024
2024-12-09
Music industry funding witnessed a significant turn in November 2024, defying a falloff in cumulative YTD raises. October's growth was built upon, with core funding seeing double-digit increases. However, the cumulative value of YTD raises still lags behind 2023. DMN Pro's Music Industry Funding Tracker provides valuable insights, compiling rounds from within and around the industry. In November 2024, there were five raises, the same as the prior-year month. Unlike 2023, the rounds in 2024 didn't have a large AI raise. After subtracting that, November 2023 had $36.80 million, while 2024 had $46.60 million, a nearly 27% YoY spike. (PlayAI's $21 million seed round is included in the core category as it's close to the music sphere.) Despite the improvement, the average core industry round size was similar in both months. As we enter the final weeks of the year and look to 2025, it remains to be seen if the recent growth is a broader trend. Between January and November 2024, disclosed capital was $3.21 billion, about 68% below 2023. 2023 also saw significant industry-adjacent funding. Even without non-core capital, music industry funding had a nearly 35% YoY slip. Concord's $850 million ABS and Iconic Artists Group's $1 billion in capital alone made up nearly 58% of total industry funding. When factoring in other rounds, the share increases further. There's no telling what's ahead, but logic and evidence suggest a funding cooldown in the ticketing arena and that catalog investors are well-positioned.October's Growth and November's Performance
1: October laid the foundation for November's growth. Core music industry funding saw a remarkable double-digit increase during November 2024. This growth was a positive sign, but it still couldn't make up for the lag in cumulative YTD raises compared to 2023. The Music Industry Funding Tracker became a crucial resource, compiling rounds from various sources within and around the industry. 2: November 2024 had five raises, similar to the previous year. However, the absence of a large AI raise in 2024 was notable. This difference in funding sources had an impact on the overall figures. The $46.60 million in core music industry funding for November 2024 represented a significant YoY spike, highlighting the industry's potential.Core Industry Round Sizes and Trends
1: Despite the YoY growth in core music industry funding, the average round size remained relatively stable. In November 2023, the average was $9.2 million, and in 2024, it was $9.3 million. This similarity in round sizes shows that while there was an increase in the total funding, the individual deals were of similar magnitudes. 2: The consistency in average round sizes indicates that the industry is evolving in a way that doesn't rely solely on large-scale raises. Smaller and medium-sized rounds are also playing a significant role in the growth of the music industry. This trend is likely to continue as more startups and established companies seek funding.Looking Ahead to 2025
1: As we approach the end of 2024 and look ahead to 2025, the future of music industry funding remains uncertain. The recent growth may or may not be a sign of a broader trend. It will be interesting to see how the industry performs in the coming months and if the current momentum can be sustained. 2: The data shows that even without non-core capital, music industry funding has faced challenges. A nearly 35% YoY slip in the nearly year-long window is a significant setback. However, the contributions of certain companies like Concord and Iconic Artists Group give hope that there are still opportunities for growth.Impact of Funding on Different Sectors
1: The ticketing arena, which has been red-hot, is expected to experience a funding cooldown due to 2024's capital injections and broader market trends. This could have implications for companies and investors in the ticketing space. It will be important to monitor how this sector adjusts to the changing funding environment. 2: Catalog investors, on the other hand, seem well-positioned for the foreseeable future. Despite aggressive deal-making, their positions remain strong. This stability provides a sense of security in an otherwise uncertain market. It will be interesting to see how these investors continue to shape the industry.