SUNDAY, JANUARY 07, 2007
VC's + Record Labels = Failure
It's astounding to me that VC's are set up just like record labels are - To fail "most of the time". What kind of business does that? Build themselves in a way that it's expected you will fail 90% of the time? People with money, as I've said before, crack me up because they set the rules. You show up with a business plan and a 90% chance of failure and see how far you get.
I don't really hate the Brittany's and NSync's (Microsoft's and Google's) of the world - they help fund good artist who would otherwise not get a shot at doing much. But I can't help but think if labels (and by extension VC's) would stop signing non-winners to begin with and throwing something out there to see 'if it sticks', the industry as a whole might be better off. Start with a Winner. Start with Talent.
I understand you have to invest in a diverse way, but for crying out loud, minimize your risk! Search for the home runs. I'm surprised VC's just don't invest in record labels - seems they both like to lose money.
I propose those with a true plan, get financed by VC's and those with true talent get signed by Record Labels. Let's cut out the waste.
By offsetting publishing, I can make money for any record label with enough money to invest properly. Hey, that gives me an idea... but then, it just might be successful (and we couldn't have that!)