Globally, over 10,000 startups were formed in 2020 and global startup funding across all sectors grew 42% year over year.
The three industries that saw the greatest startup growth last year were science and technology (+ 329.7%), biotechnology (+ 187%) and manufacturing (+ 113%).
In a week where we learned that worldwide recorded music industry revenues increased 7.4% in 2020, we have now found that the global music industry’s startup scene was not as good as it was in 2019 over the past year was financed.
VC funding for music startups declined 67% from over $ 1 billion in 2019 to $ 328.9 million last year.
This comes from new figures released by researchers at BusinessFinancing.co.uk in a report that shows how start-up funding has changed from 2019 to 2020 and how spending varies by country and industry.
The report, which was produced by analyzing the Crunchbase data, also shows that the number of startup music companies receiving VC funding has decreased from 87 in 2019 to 68 last year.
Interestingly, artificial intelligence startups raised 82% more VC funds in 2020 than in the previous year.
Total investment in AI startups rose from $ 10 billion in 2019 to $ 18.2 billion last year, with 150 more AI startups funded in 2020 than in 2019.
Other industries where startup funding fell significantly were media and entertainment, which fell from $ 1.73 billion in 2019 to $ 777,000 last year (-55%), Travel & Tourism, which fell from $ 5.7 billion last year. In 2019, down to $ 2.38 billion in 2020 (-58%) and Clothing & Apparel, which fell from $ 2.1 billion to $ 1.3 billion (-39%).
“It is plausible to argue that these industries were affected by the events of 2020,” the report said.
Elsewhere in the report, the numbers show that the average funding round in 2020 raised $ 28 million across all sectors, up 57% from the 2019 average.
The three countries that saw the greatest growth in startup funding last year were Estonia (+ 1,346%), Chile (1,058.4%) and Colombia (941.9%).
The three countries with the largest decline in funding were Argentina (-91.2%), Lithuania (-87.4%) and Nigeria (-74.4%).
The US saw the largest increase in investment from dollar to dollar, increasing $ 35,594,999,900 ($ 35.6 billion, or 79.0%) in 2020.
A total of 10,468 startups in all sectors received venture capital (VC) in 2020, only 83 more than in 2019.Music business worldwide