Snafu Records Raises $6 Million to Replace Record Executives with AI

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Snafu Records Raises $6 Million to Replace Record Executives with AI
Photo by Jonas Zürcher on Unsplash

Social media has made it easier for musicians and producers to get discovered, but they still have to impress the industry's gatekeepers to make it big -- and those executives are typically white men swayed by their own biases, whether they intend it or not.

A June report from USC's Annenberg Institute found 86% of the music industry's top executives are white and male, and under 20% of executives at the level of vice president or higher are from minority groups.

Little surprise, then, that Snafu Records founder Ankit Desai believes the music industry is overdue for a change in how it discovers, promotes and scales artists' careers — and he's using artificial intelligence to do just that.


Snafu, which launched in 2018, raised a $6 million funding round on Sept. 21 to fine-tune its AI discovery platform. With offices in Los Angeles and Sweden, Snafu will soon launch two new products -- Blurry, a platform for songwriters to find collaborators, and Fine.Art, a system that lets Snafu and its artists co-invest in funding a breakout artist's career.

Desai said the company's revenue mainly comes from taking a cut of the rights to an artist's work after they sign. Snafu has a roster of 45 artists.

Snafu uses AI to scan a million new songs per week and analyze factors that could determine the artist's success -- including song structure, overall popularity and how listeners are talking about them on social media. Right now the platform focuses on Spotify, YouTube and TikTok, but Desai said Snafu's looking to include other audio streaming platforms like SoundCloud and Bandcamp soon.

The company brought in a number of high-profile investors in the round, including Agnetha Fältskog, lead singer of Swedish superband ABBA; Hampus Monthan Nordenskjöld, who was one of the first investors in Snafu; and Academy Award-winning songwriter Savan Kotecha.

"I'm proud to be part of what [Desai] is creating, which is not just an algorithm trying to find hits, but it's actually quite a lot bigger than that," Nordenskjöld said. "We're trying to change music from the ground up, and I think we're gonna make a solid attempt."

When it launches, Blurry will use AI to match producers and artists looking to collaborate. Desai described it like a "Tinder for musicians," where people match based on short music samples and then their identities are revealed to one another after they agree to collaborate.

The Fine.Art service will help up-and-coming artists identified by Snafu's algorithm as potential stars get advanced funding to start their projects. Desai said the AI will pinpoint potential hits and then Snafu will offer existing artists the chance to invest in an emerging artist's success.

"The good thing about streaming is that once a song has peaked, you can be relatively comfortable in predicting how much money that song is going to make in the next 18 to 24 months," Desai said, adding this is how the company will decide which artists to fund.

Shrikanth Narayanan, an AI researcher and university professor of computer and electrical engineering at USC, said AI has the potential to democratize and make the music industry more equitable.

"Personalized experiences are something that AI strives to do in a way that could be very inclusive and equitable," Narayanan said. He added that AI has "a promising potential to empower the music industry" and could "actually enhance and make it even better."

There is a potential the AI could be wrong -- something Desai and investors say they expect. It's possible Snafu could give an artist an advance and never see a return, one or two big hits could make up for it.

Narayanan said that Snafu's AI could have its work cut out for it in calibrating its selection process.

"Naturally there's going to be a lot of variability across people, and so that while we can understand that and study it, this may certainly be a challenge that AI tools will face," Narayanan said. "They have to see enough patterns to understand the range of emotions or things a particular piece of music is conveying (to) or connecting with listeners."

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Hosts Who Rent From “Airbnb-Friendly” LA Apartments May Not Make a Profit

Amrita Khalid
Amrita Khalid is a tech journalist based in Los Angeles, and has written for Quartz, The Daily Dot, Engadget, Inc. Magazine and number of other publications. She got her start in Washington, D.C., covering Congress for CQ-Roll Call. You can send tips or pitches to amrita@dot.la or reach out to her on Twitter at @askhalid.
LA house

L.A.’s lax enforcement of Airbnbs has led to an surge of illegal short-term rentals — even four years after the city passed a regulation to crack down on such practices. But what if hosts lived in a building that welcomed Airbnb guests and short-term rentals?

That’s the idea behind Airbnb’s new push to expand short-term rental offerings. The company is partnering with a number of corporate landlords that agreed to offer “Airbnb-friendly” apartment buildings, reported The Wall Street Journal last week. According to the report, the new service will feature more than 175 buildings managed by Equity Residential, Greystar Real Estate Partners LLC and 10 other companies that have agreed to clear more than 175 properties nationwide for short-term rentals.

But prospective hosts in Los Angeles who decide to rent apartments from Airbnb’s list of more than a dozen “friendly” buildings in the city likely won’t earn enough to break even due to a combination of high rents, taxes and city restrictions on short-term rentals. Rents on one-bedroom apartments in most of the partnered buildings listed soared well over $3,000 a month. Only a few studios were available under the $2,000 price range. If a host were to rent a one bedroom apartment with a monthly rent of $2,635 (which amounts to $31,656 annually), they would have to charge well over the $194 average price per night for Los Angeles (which amounts to $23,280 per year) according to analytics platform AllTheRooms.

Either way, residents who rent one of these Airbnb friendly apartments still have to apply for a permit through the City of Los Angeles in order to host on Airbnb.

“[..Airbnb-friendly buildings] seems like a good initiative. However, from a quick look, it seems that given the rent, Airbnb revenue wouldn’t be enough to cover all expenses if the host follows the city’s policy,” says Davide Proserpio, assistant professor of marketing at the USC Marshall School of Business.

In addition, since L.A.’s 120-day cap on short-term rentals still applies to the buildings on Airbnb’s listing platform, that greatly limits the number of longer-term guests a resident can host. Not to mention, some of the buildings that Airbnb lists have even shorter limits – The Milano Lofts in DTLA for example only allows residents to host 90 nights a year.

Airbnb’s calculations of host earnings may be greatly misleading as well, given that the estimate doesn’t include host expenses, taxes, cleaning fees or individual building restrictions. For example, Airbnb estimates that a resident of a $3,699 one bedroom apartment at the Vinz in Hollywood that hosts 7 nights a month can expect $1,108 a month in revenue if they host year-round. But the Vinz only allows hosts to rent 90 days a year, which greatly limits the potential for subletters and a consistent income stream.

Keep in mind too that since the apartment will have to serve as the host’s “primary residence”, hosts will have to live there six months out of the year. All of which is to say, it’s unclear how renting an apartment in an “Airbnb-friendly” building makes hosting easier — especially in a city where illegal short-term rentals already seem to be the norm.

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The Streamys Reveals The Disconnect Between Online Creators and Traditional Media

Kristin Snyder

Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.

tiktok influencers around a trophy ​
Andria Moore /Charli D'Amelio/Addison Rae/JiDion

Every year, the Streamy Awards, which is considered the top award show within the creator economy, reveals which creators are capturing the largest audiences. This past Sunday, the event, held at The Beverly Hilton, highlighted some of the biggest names in the influencer game, chief among them Mr. Beast and Charli D’Amelio. It had all the trappings of a traditional award show—extravagant gowns, quippy acceptance speeches and musical interludes. But, as TikTok creator Adam Rose told The Washington Post, the Streamys still lacks the legitimacy of traditional award shows.

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Slingshot Aerospace Is Expanding Its Network of Telescopes To Make Tracking Data Even More Accurate

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Slingshot Aerospace Is Expanding Its Network of Telescopes To Make Tracking Data Even More Accurate
Photo: Slingshot Aerospace

Slingshot Aerospace, the El Segundo-based startup developing software for managing objects in space’s orbit, raised $40.9 million to build out its global network of sensors and recruit new customers both private and public.

The round was a follow-on to Slingshot’s $25 million Series A-1 raise in March.

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