So much is written about major U.S. startup hubs like Silicon Valley, NYC and even Austin, that it's easy to forget that some of very interesting work is being done elsewhere. Thanks in part to an innovative collective, Finland is becoming a hotbed of music tech innovation.
Finnish music startup companies expect high growth this year. This can be found out from a recent report done by Finnish Composers’ Copyright Society Teosto and the Finnish Music Startups collective. According to the report, revenue in music startups has doubled last year.
The companies themselves estimate that the turnover from the entire collective can exceed 22 million euros in 2015. There is potential for great success in music startups, comparable to that of the games industry. In fact, quite a few Finnish Music Startup companies have grown bigger and this is partly thanks to international collaboration.
For Finnish music startups, music is essential either in a form of a service or as actual product. The companies in the collective are vastly networked among each other as well as other companies. Most founders of these companies have some sort of musical background, either through work or hobbies.
According to the report, one of the biggest challenges the companies faced was raising funds. In total, the companies in the report have received funding for around 15 million euros. International funding was less than ten percent of this amount.