Company
Yamaha Music Innovations
Yamaha Music Innovations, as described on the show by Yusuke Sugino.
Episodes (1)
Yusuke Sugino, president and CEO of Yamaha Music Innovations, explains why Yamaha is investing in music tech and how its new fund plans to support startups.
Questions these episodes answer
How much do VCs actually help music tech startups beyond financing?
Jakob Wredstrøm cites research suggesting that about 90% of VCs do not contribute to startup success beyond the money, with only around 10% helping with the actual business. Sugino says this matches his own hypothesis that most VCs invest but do not help, and sees it as one reason startups in music find it hard to grow.
Why does Yamaha invest in music tech if many say it is too hard to invest in?
Sugino acknowledges that people often call music too hard to invest in and says he partly agrees. Yamaha still believes it should invest in music, because the basic structure of artists making music and fans enjoying it has never changed, even as the medium moved from cassettes and CDs to streaming.
What stage and size of investments will Yamaha's new fund make?
Sugino says the fund is primarily thinking about minor investments rather than taking the lead of a startup's board, hoping instead to become a board observer. He says the fund is more likely to target early stages such as seed and Series A rounds than larger, later rounds.
How long does Yusuke Sugino expect it to take for Yamaha's fund to show returns?
Sugino says the fund had not started as of the interview and would begin in May, and that full financial returns on the fund take six, seven years at minimum since it takes time for startups to grow. He distinguishes those slower fund returns from quicker, smaller strategic wins.
How does Yamaha plan to support startups beyond writing a check?
Sugino says Yamaha can push its own business units to collaborate with or contribute to startups through proofs of concept and smaller collaborations, some of which have already started this year without any investment. He sees this as a way to build toward bigger joint projects over time.