Generative AI and fan engagement are leading the pack as the two categories attracting the highest deal volume, followed by live event tech and marketing/business operations.

Notably, a majority of the generative AI startups being funded so far this year either are focused on rights management and attribution (e.g. Musical AI, Vermillio, Bria), or have a strong B2B angle in their partnerships (e.g. Music AI, ElevenLabs). This suggests that industry alignment, rather than disruption, is the thesis that investors are betting on in 2025.

“Boring” B2B tools that actually work. Our speakers highlighted examples such as Music AI's business-focused audio processing tools, AudioShake's stem separation technology, and Panjaya’s real-time translation and lip-syncing. These cases match a trend we've seen at Water & Music around investor momentum increasingly coalescing around AI tools that embed into existing creative workflows, rather than those trying to disrupt the industry as a whole.