VC is to startup like a major record label is to an artist?
jacquesm: I don't think so. A record label is more like a specialized bank with a distribution network grafted on.A VC is more like a partner that brings money to the table, and possibly contacts and advice and they don't take the largest cut by default.Your negotiation position with a VC is much stronger than a typical no-name artist that wants to get distribution.Very few artists have the capability to outmaneuver the system, but plenty of start-ups get to a strong negotiation position without funding.By the time they do take on capital they're strong enough to get a good deal, whereas in the music industry the vast majority get the short end of the stick, even some surprisingly big name artists.A typical record costs about $100K to $200K to produce, that's not including snazzy videos or other extras.  For that an artist basically gets a loan that they can 'earn back' using the proceeds (if any) from the record company.The record company controls the distribution, and it is not rare to have extra riders including multiple albums and a cut of the proceeds of merchandising and such added on.And if your record doesn't earn back the investment it isn't rare that you are now in hock to the record company. There are plenty of 'fast' operators that will sign up new artists to draconian terms, get them a 'demo' grade recording and a few hundred cd's cut then spit them out again, in the hope that they get some play somewhere. Then afterwards they find out that their 'friends' that got them the demo need to be bought out before any major label can touch them.These are extremely lousy deals (the major label ones less so but still very bad for the artist), but since everybody is doing it there are very few alternatives.