Interesting blog discussion of how record labels are (and are not) like venture capital firms, at Rags Soapbox. For example:

# Both find and fund risky ventures, artists and entrepreneurs/startups respectively, via equity stakes.

# Besides cash, both provide a strategic 'value add'. Record labels use their skills to develop their artists and their control/clout to distribute and promote their records via radio airplay, videos, co-op ads, etc.

See also A VC.

This gives Rags some ideas that sound like the type of thing we would think at PFF:

Can you imagine artists' equity trading in public markets? This is unlikely - lots of room for inside information & manipulation; artists are very risky and hard to predict and many other reasons. Still, it would be pretty cool -- I'd be short Coldplay and long Radiohead, and I'd have Kiss and the Beatles in my 401 K. Ha.

Link from Infectious Greed.