Ma Ke, founder and CEO of Musikid
On August 1st, Musikid, a music crowdfunding and musician services platform, told CMBN that they had received an A Round financing of nearly 20 million RMB by the investors called Legend Capital and Meridian Capital. The follow-on financing is also under consideration and plan.
In terms of funds, Musikid plans to expand products and technical strengths, aiming at better online products and services as well as helping musicians for better experience. Besides, Musikid is considering spending on marketing or events and expanding its reputation to a wider scope of people.
Ma Ke, founder and CEO of Musikid, said, “Since the start of A Round financing, we’ve gone through a lot of ups and downs. It was a suffering that took us about 10 months. We are now grateful to investors’ reorganization. A series of plans are following, including projects towards customers, in-campus programs and indie label programs and so on, which will begin in August.”
Started with crowdfunding, Musikid has been in groping in the forward with not only examples of good reputation but of programs that suspended due to problems with implementation, such as online venue reservations and Could brokers had not been made “scale” in an expected Internet method, but more likely staying on “artificial” and “experience” ways.
After receiving financing, Musikid will pay more attention on “serving musicians”. Since this year, the company has been gradually diluted the concept of “crowdfunding”. As for Musikid, crowdfunding is only the tool for musician service rather than the goal. However, at present, crowdfunding consists of 60% of their business with the rest revenue coming from musician services.
In the first 8 months of 2015, Musikid was the executor of Chen Bi’s touring and the PR of Li Zhi’s and Shao Yibi’s touring. In addition, they also helped musicians sell tickets. According to the data by the end of June, there have been over 1,000 programs and 3,000 concerts on Musikid’s platform. Guo
Xiaohan, the second head and co-founder of Musikid, explained that China was not yet an imaginative country. Working hard for one and half a year, Musikid only built up around 400 programs, which could not compare with their foreign counterparts.
Guo said, “We know that many crowdfunding projects of famous musicians are based on their connections with other people. Actually, not all musicians are familiar with crowdfunding. They just feel it is trustful to allow me to handle it.” This is also why that what Musikid do latter is far away from
crowdfunding. It aims to solve the real needs of musicians, like making albums after crowdfunding, PR for events and reliable implementation for touring.
In September 2012, music vertical website Musikid.com came online. In May or June that year, Ma moved to his friend — Xiang Zheng’s — Apple Community Office. He had been working with financing but with no results for more than half a year. It was until the end of 2013 that Ma got 3
million RMB of angel financing.
“Musikid is an open platform. We won’t sign any artist and we run all events by our own. No. We will serve musicians in an open and cooperative way. ” Ma said. Now, many VC and listed companies are completing music industry. The following one year or two is the best time. If we seize the opportunity, the market will thrive.
Is there any advice for music entrepreneurs? Ma said, first, entrepreneurs should finance as early as possible and grasp the rhythm of financing. Second, as capital is profitable, everything should be based on profits. Since it took Musikid one and half a year to acquire their angel
financing at the end of 2013, the company failed to do many projects under financial burden. Since the end of last year and the first half of this year, the whole team was struggling. They did almost everything from ticketing to PR to touring. The reason that they survive is that they have cash flow every day, which can make part of their profits. Ma advised, “No matter how bragging you are, you must make money. So, even without the support of financing, you’re able to survive.”
Legend Capital is the independent Venture Capital investment subsidiary under the holdings company. The core business of Legend Capital is early-stage Venture Capital and expansion-stage Growth Capital investment. By May 2015, Legend Capital has invested in over 200 companies.
Meridian Capital China is a leading private equity investment fund in the new media field in China, and over the years it has dedicated itself to making investment in new media, information technology and cultural consumption sectors. The core members of Meridian Capital China have made investment in and managed nearly 100 enterprises, including leading enterprises in their
respective industries, such as CTRIP, Home Inns, Allyes, Focus Media, NetDragon, Eachnet, Eastmoney, 500wan.com.
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