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      The UK has built one of the most dynamic music tech ecosystems in the world, with a powerful combination of creative talent, technical innovation and deep industry expertise. Yet the sector now stands at an inflection point: the challenge is no longer innovation alone, but how effectively that innovation scales.

      New data from Music Technology UK (MTUK)’s Sound Investments 2026 report highlights the urgency. Growth-stage investment in UK music tech has fallen by 90% since 2020 — from £101 million to just £10 million. This is not a pipeline problem.

      Early-stage company formation remains strong. It is, instead, a sector-specific failure of capital − a gap between innovation and scale. At a time when the UK Government’s Industrial Strategy for the Creative Industries is prioritising growth and global competitiveness, closing that gap becomes even more urgent.

      As lead sponsor of this year’s report, KPMG is proud to support one of the most comprehensive views of investment into UK music tech to date. Its findings point to a defining tension: while the UK is highly effective at generating new ideas, it is less consistent at scaling them into globally leading businesses.

      Nat Gross
      Nat Gross

      Partner and EMA Head of KPMG Media Practice

      KPMG in the UK

      Rebecca Krol
      Rebecca Krol

      Music Sector Lead

      KPMG in the UK

      The UK has a strong pipeline of music innovation, but scaling it globally requires more than capital - it requires earlier access to the right networks, expertise and support.

      Matt Cartmell

      CEO, Music Technology UK

      Value is shaped early

      One of the report’s most striking insights is how early long-term value is determined.

      While the sector has digitised rapidly, its commercial foundations, from rights structures and data architecture to governance and contracting, do not always evolve at the same pace. Decisions made at inception can have a lasting impact on flexibility, investment readiness and ultimately the ability to scale.

      For founders and investors alike, this reinforces the importance of getting the fundamentals right from the outset − not just through capital, but through access to the right commercial and regulatory expertise.

      Trust, transparency and the role of technology

      Technology is accelerating both opportunity and complexity across the music ecosystem. AI and data are reshaping how music is created, distributed and monetised, while placing increasing pressure on rights frameworks and trust.

      Companies that are able to build transparent, resilient infrastructure, particularly around rights, royalties and data, are likely to be better positioned to attract investment and scale sustainably.

      Music tech plays a critical enabling role here. Solutions that improve royalty accuracy, rights visibility and data transparency are not just operational enhancements; they underpin trust, which in turn supports growth and investment.

      Scaling depends on access and connection

      The report also highlights that scaling is not simply a function of capital. It depends on how effectively businesses connect with the wider ecosystem, including investors, corporates, policymakers and international markets.

      The UK continues to produce strong early-stage innovation. The opportunity now is to strengthen the pathways that take those businesses from product-market fit to global expansion.

      This requires greater alignment between:

      • Capital providers
      • Commercial and regulatory expertise
      • Industry networks and partnerships

      Closing that gap increasingly depends on acting as a ‘growth broker’, connecting businesses not just to capital, but to the expertise, infrastructure and partnerships that enable scale.

      How KPMG supports growth in music tech

      Turning innovation into scalable, sustainable growth requires coordinated support across the full business lifecycle, from early-stage structuring through to international expansion and exit.

      At KPMG, we work across the music, media and entertainment ecosystem, from high-growth music tech businesses to global platforms, rights holders and media organisations. This vantage point allows us to support growth from multiple angles, and to help connect emerging innovation with established industry players

      In practice, this includes supporting organisations across the lifecycle such as:

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      Founders in building strong commercial and governance foundations early

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      Businesses navigating fundraising and expansion, including access to investors through KPMG Acceleris and our wider network

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      Organisations responding to AI, data and regulatory complexity

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      Companies strengthening transparency across rights, royalties and data

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      Leadership teams preparing for transactions, exits or international growth

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      Corporates and platforms in engaging with emerging technologies, partnerships and investment opportunities across the music tech landscape

      Alongside this, we connect businesses into a wider ecosystem of investors, corporates and partners, helping to accelerate growth through access as well as advisory.

      Programmes such as Emerging Giants bring this to life in practice, providing high-growth businesses with access to funding expertise, networks, talent and mentoring as they scale.

      There is still a gap in how investors understand the music sector, which limits access to capital. Programmes like KPMG’s Founded By Her show how important it is to combine funding with the right networks, mentorship and support to help founders scale.

      Chantal Epp

      Founder & CEO, ClicknClear

      A shared opportunity

      The UK does not need to build a music tech sector from scratch, it already has one. The opportunity now is to ensure that more of that innovation is translated into globally competitive, scalable businesses.

      This ambition is increasingly aligned with the UK Government’s Industrial Strategy for the Creative Industries, which places growth, innovation and international competitiveness at the centre of the agenda. Music tech sits squarely within that vision, but realising it will depend on strengthening the pathways from idea to scale.

      Sound Investments 2026 provides a clear evidence base for how the sector is evolving, and where further focus is needed. Through our partnership with MTUK, we are proud to contribute to that conversation and to support the sector in shaping the future of music tech and media more broadly.

      You can download the report from MTUK’s website here: Sound Investments - Back the Sector - Music Technology UK.

      Get in touch

      Whether you’re navigating early-stage structuring and fundraising or longer term growth and investment opportunities, we’d welcome a conversation on how we can support your next phase.

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