MusicHype start-up gets $600,000 injection from Rutherford

MusicHype start-up wins $600,000 injection from Rutherford Fund to tap U.S. market

By Peter Kerr

18 Jan. (BusinessDesk) - Wellingon-based start-up MusicHype, a connection platform for bands and fans, won $600,000 in venture capital from the Rutherford Innovation Fund to help its North American expansion.

Rutherford, a fund associated with Christchurch-based NZ Capital Strategies, has put up the money for the website which aims to reward music-lovers for promoting, talking about and spending money on individuals and acts that they love. Bands in turn make money from exclusive merchandise, tickets, digital downloads and other products.

"We invested in MusicHype because the music industry has been disrupted by the internet and digital technologies," said NZ Capital Strategies director, and Ruther Innovation Partner, Kenji Steven.

"Established business models are not providing adequate returns for record labels and artists, or satisfying experiences for fans,” he said. “The underlying 'Appreciation Engine' technology can also be applied to many other verticals, which we find tremendously exciting due to the growing importance of social media on influencing consumer behaviour."

MusicHype's proprietary 'Appreciation Engine' tracks fans' activity across social media services like Facebook, Twitter and YouTube. This technology can be expanded to other industries, said MusicHype chief executive, Jeff Mitchell.

In the past 12 months MusicHype broke even in the New Zealand market and is ready for scalable growth in North America, he said.

Mitchell has been invited to speak to the international music event MIDEM in Cannes, France, later this month, where the company will pitch its services and product to a global music industry audience.

Mitchell and fellow founding partner Annabel Youens are to open a Los Angeles office, which will collaboratively work with its Wellington development team.

(BusinessDesk)

© Scoop Media