Starting a startup then getting funded is always a good news to share with the public (You may not want to reveal the exact amount of the funding, though). But for music startups, at least in China, the fundraising status seems a highly classified information.

No.1 rule: don’t tell people you are funded, which is what I’ve been told by several music startups.

The reason sounds simple. Usually startups when they starts don’t have money to pay for the license fee, so most startups have to play with the pirated music content. The music publishers know that they will get little or even nothing if they sue the startups for copyright infringement. But if they know you have extra money in pocket, they will not let you walk away easily. “The licensing fee is now an important revenue source in digital music industry.” a startup founder, who has years of experience in music industry and recently founded a mobile music service, said so.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Gang Lu

Dr. Gang Lu - Founder of TechNode. He's a Blogger, a Geek, a PhD and a Speaker, with passion in Tech, Internet and R'N'R.