The labels don't really provide funding in the same way that VCs do; they essentially provide a very large payday loan. Any VC who demanded the kind of terms record labels do would be run out of the Valley.
The interesting question is, is there room for a real VC industry in music? I think there might be someday, but not in the current market — the existing cartel is so horribly messed up that they'd be pleased as punch to take you down with them.
The interesting question is, is there room for a real VC industry in music? I think there might be someday, but not in the current market — the existing cartel is so horribly messed up that they'd be pleased as punch to take you down with them.