How Indie Record Labels Are Comparable with Angel Investing

In many ways, indie record labels have several things in common with angel investing here are the facts you will find interesting and useful on this topic. Indie labels are found to invest in artists in the same way as angel investors invest in startups.

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When you champion an indie record label, you will have to listen to hundreds of demos and listen to the pitches from artists and managers and decide on how to make the venture successful. In the similar fashion, angel investors also go through similar kind of pitches and review decks from startup founders on why the given business idea is feasible.

How angel investing and indie record labels resemble each other

∙ While investing in startups, angels take more risk even when there is no viable product. In the same way, indie labels take similar bets on artists while they bet on artists who do not have a fan base.

∙ Angels wish to find higher returns on their investment when the startups start valuing high or go public or acquired. Best rated indie labels can thrive when the developing artists they promoted become popular and grow their fan-base or acquired by a major label.

∙ Indies and angels make smaller investments till they get a confirmation of the success rate.

∙ Indies succeed when they quickly move forward after sensing the pulse of the existing music trends before others do it. Angels are seen working in the same ways when they are able to bet on the right trend before peaking in.

∙ Both Indies and angels can succeed if they have a network that can tap into a successful track record. If you have not demonstrated success earlier, it is less likely that you will be partnered with.

∙ The success rates are similar in cases of Indies and angels. While most ventures lose under both the categories, a few bets pay off over time.

By Patrick Hill on June 21, 2018.