It struck me the other day when I saw that chirp.io were raising money on crowdcube that there are actually very few music tech companies who raise funds on sites like this, and that’s a shame in my opinion.
Sure, we see loads on Kickstarter and indiegogo but very few raising equity. In fact the only two I know of are chirp.io and Mindflood (who are the company behind patchblocks).
Personally I’d like to see a lot more music tech companies trying this route to finance. I realise that it isn’t for everyone but it does offer a way to engage users by making them a part of the business. As stakeholders, and as shareholders.
I’d certainly be interested in investing in companies offering equity and I’m sure lots of other people would too, given the chance.
Of course it isn’t something that’ll either appeal to or potentially work for some app makers. I realise that it isn’t for everyone of course. However, don’t discount it it straight away. Raising equity doesn’t mean you need to be a big firm or have a large number of staff. You do need a vision for where you’re going with you idea and how you plan to expand and develop, and you can’t just raise money in order to spend it for the sake of it or just as normal expenditure.
You’ll need a proper business plan. As I said before, it isn’t for everyone, but if you’ve got a vision for where you want to go then it could be worth investing the time and effort in exploring equity raising as an option.
One thing is for sure. The mobile music user base is engaged and keen to be a part of the development of tools, apps, platforms and hardware for the future of mobile music. If chirp can raise money in this way then I don’t know why others couldn’t too. Of course given that the business model and vision is right.