Students of cultural and music management at the Munich University of Music and Theatre are learning how to build a cultural startup in the "Cultural Entrepreneurship Lab." Munich Startup has previously reported on a graduation event reported. Institute director Prof. Maurice Lausberg now explains to us in more detail what the Cultural Entrepreneurship Lab is all about.
What is the Cultural Entrepreneurship Lab?
During the second and third semesters, students in the Master's program in "Cultural and Music Management" at the Munich University of Music and Performing Arts work in small teams to develop a cultural business model, from the initial artistic vision to market and competition analysis and finally to a complete business plan. From establishing a singers' agency to founding a record label or initiating a new festival, anything is possible. The process is supported by regular coaching sessions with program lecturers and workshops with external guest speakers from the cultural and business sectors, including on topics such as design thinking, online marketing, and pitch presentations. At the end of the first half of the CEL, the ideas, research results, and strategies are presented and discussed in plenary sessions. Building on the work of the first semester and the results of the first plenary session, the students then refine, develop, and complete their business plans in the second semester.
At the conclusion of the Cultural Entrepreneurship Lab, the business plans are presented to experienced entrepreneurs, investors, and cultural professionals as part of a large investor presentation and evaluated by them. The students receive valuable feedback on their presentations on-site, as well as concrete advice and suggestions for the ideas and strategies they have developed.
In your opinion, are there any reservations about contact between cultural workers and entrepreneurs?
There are different priorities within the cultural and creative industries: A high number of small and micro-enterprises is generally typical of the cultural and creative industries. Musicians and artists, in particular, often operate as independent "survival artists." In these cases, entrepreneurship is limited to the production, marketing, and distribution of their own skills or their own person. There are also ideally motivated entrepreneurs in the non-profit sector, as well as cultural entrepreneurs who build companies that offer cultural offerings but aim to profitably market them. Examples include record and music publishers, concert and festival organizers, artist agencies, and musical producers.
The reasons for the reluctance of cultural creators to connect with entrepreneurs are not only rooted in the cultural creators themselves, but also in the market environment: the market is often too small or has low growth, business models are rarely scalable or unprofitable, and marketing expenditures are often too high relative to the revenue generated. Recognizing this opportunity and seizing it to become successful as an entrepreneur requires skill, courage, and commitment. Fortunately, there are cultural entrepreneurs who are discovering these opportunities and, together with artists, are founding festivals, orchestras, labels, apps, crowdfunding platforms, musical instruments, and many other ventures.
To be successful as an entrepreneur, a cultural worker must…
...have absolute conviction in the idea (doubts will come later enough), a strong will and the ability to endure (every start-up goes through serious crises), sufficient industry experience, a high level of motivation and a strong talent for communication and sales (only those who can sell will convince customers, partners, sponsors and possibly investors).
What is the biggest mistake a startup can make?
Investing too much time and energy in developing a product without first analyzing and testing the real market situation.
The trend of the year is…
Artificial intelligence.
What makes Munich special?
First of all, Munich is an important metropolitan region for the cultural and creative industries (the sector ranks third in terms of the number of local employees) and is also one of the European creative hotspots, such as the Data report of the Office for Cultural Industries Research. The variety and quality of Munich's cultural institutions are also of great value for cultural ventures. This encourages the establishment of concert promoters, artist agencies, PR agencies, and other service providers for cultural institutions in the local area. The construction of a new concert hall also demonstrates that culture is valued as a central topic in politics and business within the city, and that further cultural growth is possible. Last but not least, Munich, with its excellent university landscape, diverse start-up initiatives, and the expertise they combine in various disciplines, is an important location for young start-up teams.
Is there a startup that emerged from the Cultural Entrepreneurship Lab that you are particularly excited about?
At the end of 2016, Jonas Rothe, an alumni of the first year of the Master’s program “Cultural and Music Management”, founded a virtual reality company: The TimeRide GmbH uses the latest technologies to revive the past and make it accessible to a broad audience. This offering is unique worldwide, and in just a few months, the first virtual reality journey through time will be available in Cologne.
