Investors Bet On Startups Like Record Labels Bet On Pop Stars

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Photo: Dan Frommer, Business Insider

Inc writer Burt Helm trailed music startup Turntable.fm for three months and wrote a 4-page article for the May issue.In it, Helm writes a theory about technology entrepreneurs and investors.

He says coders are the new rock stars, and there isn’t much method to investor madness.

“Coders are the new rock stars. Twitter’s Jack Dorsey and Facebook’s Mark Zuckerberg built sites that attract crowds of millions, but they don’t completely understand how they did it—and neither does the money backing them. It’s not as if they do market research. So venture funds now bet on hackers the way record labels bet on rising pop stars, hoping that someday soon, they will make something wild, new, and insanely lucrative.”

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