tunesBag joins incubator in a sign music startups are coming back

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As we saw at GeeknRolla in London this year, there are an increasing number of music startups appearing on the market. Now, online music service tunesBaghas joined the pack, joining INiTS incubator attached to Vienna University. INiTS offers funding, coaching and networking and is seen as a path to later VC investment.

The market for music is gaining traction with investors again and there is evidence that investments have nearly doubled in the last two years.

tunesBag just released some new features including images while listening to music and the Facebook “Like” button for artists to feed your friends with update on your favourite artists.

The Indie Music Tech site recently reported that this year’s first quarter music tech investments nearly doubled from the previous two years. The 25 deals in Q1 2010 outpaced the 27 total investments in the opening months of 2008 and 2009, althought the deal size was a little lower at $4.4 million per investment.

Among the largest have been Spotify’s undisclosed funding from Founders Fund, $20 million to Guvera and speaker manufacturer Sonos which secured $25 million from Index Ventures. Others include SeatGeek, Songbird, TuneWiki and BlogTalkRadio.

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