That artist will never make $40,000 in a year from all the legacy digital music services combined.”) (For example: “We’ve since had artists that have less than 150K followers on Spotify earn $40,000 in a year from a fanbase of just 1,500 users on Gimme. The full post is worth a read: it includes some of the lessons learned in Gimme Radio’s six-year run – during which it raised $7m of funding – as well as some stats on how it paid off for artists. We found product / market fit, but we never cracked product / investor fit.” “We thought that by hitting a $1M, 12 month run rate, achieving enviable fan engagement metrics, and by proving we could build real community, we would be in a much better position to raise the kind of capital required to scale this business to unbelievable profitability,” wrote Lenane. His blog post revealed that Gimme Radio had been looking to raise $5m, in the hopes of tripling its revenue within the next 12 months while expanding to cover 15 genres. “Even though the music fans, artists, and much of the music industry love Gimme, and even though we proved that engaged communities could generate real money at a higher average revenue per user than other music platforms, we unfortunately find ourselves in an economic climate where we have been unable to raise the financing needed to support the streaming services and grow Gimme to reach all music fans across all genres,” announced CEO Tyler Lenane. The company, which launched in 2017 with a radio-like streaming app for metal music before later adding a second country-focused station, is shutting down.

This weekend, Gimme Radio was hit by the chilly breeze. However, a longer-lasting, more existential threat may be a squeeze on funding sparked by wider economic headwinds. Last month we wrote about the short-term challenges that the collapse of Silicon Valley Bank would cause for startups, including some in the music-tech sector. Tags: Economic Crisis Funding Gimme Radio shutdowns Startups Top Stories

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