Experience in software, or for that matter technology, has never been a prerequisite for running an Internet startup. Any experience, really, is a plus. In the case of Vikramaditya Jain and Sudhin Shahani, co-founders and funders of roll-your-own-music-store company Musicane, entrepreneurship is a common thread for a set of uncommon resumes. Mr. Jain earned his capital running the family garment business (he insists it’s no sweatshop), which designs and manufactures goods for brands such as Crate and Barrel and DKNY. “There’s definitely something in most closets that we’ve manufactured,” he says. Mr. Shahani, for his part, started a successful animation school in India.
The two, both Indian natives, met while living in the same building in Cambridge, Massachusetts in 2000, when Mr. Jain was attending nearby Boston University and Mr. Shahani Babson College. They’ve put $2 million over the last three years into myMPO, a digital media transaction company, paying 37 employees spread across the United States, India, and the United Kingdom. And they’re 24 and 23 years old, respectively. The young men seized on the idea of creating a digital media company after throwing around ideas for a joint venture. They posted flyers at MIT asking for “technology help to build something like iTunes.” Soon, they were doing contract deals to build custom digital media projects for customers like Sony BMG and Anheuser-Busch. When they got sick of odd jobs, they started working on a subsidiary called Musicane, a customizable music store for independent artists. Santa Monica, California-based Musicane launched in January, and now has 2,000 customers. Each artist can sell music, video, ring tones, and mobile video, and set up their own prices and digital rights management options. An average of 30 to 40 fans per artist have modified their own web sites or blogs with the line of code that replicates the artist’s store. That’s similar to well-funded startup Navio Systems, a 2006 Red Herring 100 North America winner. Navio is targeting larger labels and entertainment companies, however. Musicane’s smaller artists don’t come in bulk, though the company has struck a deal with independent music heavyweight The Orchard to offer Musicane services to all its artists, which include Santana, Bright Eyes, and 14,000 small acts. The tools cost 20 percent of transactions and $20 per month, or 30 percent of transactions for no monthly fee and limited storage.
With tech companies large and small spending significant energies to lobby music, movie, and television executives, how are these kids getting a foot in the door? “Honestly, it hasn’t been hard to get meetings,” says Mr. Shahani, who is CEO because he’s “more diplomatic.” Mr. Jain is chief financial officer, though the two do most everything together. They’ve also used the help of former general counsel of the Recording Industry Association of America (RIAA) David Liebowitz and former RCA chairman Bob Jamison, both of whom began advising the company early on.
Contact the Writer: LGannes@RedHerring.com