The Kobalt EC-1: How a Swedish saxophonist built Kobalt, the world’s next music unicorn
My favorite pieces we host on Extra Crunch are our EC-1 series of in-depth profiles and analyses of high-flying, fascinating startups. We launched Extra Crunch with a multi-part series on Patreon, and then we covered augmented reality and Pokémon Go creator Niantic and gaming platform Roblox.
This week, Extra Crunch media columnist Eric Peckham launched the first part of his three-part EC-1 series looking at music “operating system” startup Kobalt. Kobalt is not perhaps a popular household name like Roblox, but it’s influence is heard pretty much every single time you listen to music. Kobalt is upending the traditional infrastructure to track music plays to capture royalties for artists, an industry that today still involves people literally walking into bars and writing down what’s playing. From that base, Kobalt wants to expand into services to empower the next-generation of stars and mid-market talent.
What I loved about this story is that not only is Kobalt completely rebuilding an otherwise stagnant industry, but its founder and CEO is also such a dynamic individual. Willard Ahdritz was a former saxophonist whose band was essentially abandoned by their music label — even while that label wouldn’t give up the economics that would allow the band to continue (some founders may have similar experiences with their venture investors). Ahdritz would eventually start his own music label called Telegram, and a bit later started Kobalt to solve the problems he kept running into on the music publishing side.
It’s been almost two decades, but today, Kobalt offers a suite of technologies and services and has its crosshairs on the big three labels — Universal, Sony, and Warner. It’s also raised a boatload of venture capital and is closing in on a unicorn valuation. Read the full story, learn more about this analytically fascinating business, and get ready for parts two and three coming soon.