Company: MusicStrands
Description: Music recommendation engine
Competitors: Last.fm, Pandora
Location: Corvallis, Ore. and Barcelona
Amount Raised: $6 million
Round: First
Date Announced: 3/2/06
VC Firms: GCR Capital, Debaeque Venture Capital, Sequel R&D
VC Directors: Patrick Raibaut, Marc Ferrero
Quick Take: The music recommendation market is crowded with startups such as Last.fm and Pandora receiving attention, but MusicStrands seems to have the technology and business strategy to make it work. These services suggest music to a users based on what they're listening to or what they have in their existing collection. With 14 patent filings and a plan to roll out its service via third-party companies that have large audiences or music libraries already intact, MusicStrands is staying light and technology-focused. This will eliminate the temptation to focus the company around the brutal consumer market. MusicStrands will earn revenue from partner sharing and referral fees. The Spanish born company is on track to be one of that country's most successful startups ever.
Technology (1 out of 10): 6
Market: 8
Management: 4
Chances for IPO: 3
Overall VC Rating: 6
For more on MusicStrands' funding, see:
Fabric of Folly
MusicStrands' press release
Technorati tags: musicstrands, undertheradar, web2.0, vc, venture+capital
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