Life in the incubator

Frederik De Wachter realised the first part of his dream. Tagger.fm transitioned from an idea to an IBBT-backed venture.

How often have you listened to the radio and really liked the song playing—but had no idea who the artist is, let alone what the track is called? For most of us it’s one of those little frustrations we experience almost daily. Tagger.fm founder Frederik De Wachter is betting that there is a business in there somewhere.

No coincidence

As Frederik De Wachter tells it, Tagger.fm is no coincidence. It is an idea that he’s had for years and is firmly rooted in his passion for both music and the internet. After his studies at the University of Ghent, Frederik did rather well working for several companies. He was a sales manager, a business development manager and a product manager. In essence, he’s always been looking for new business, new markets. But it is in the world of music that Frederik first became an entrepreneur. In addition to organising techno parties, Frederik co-founded a popular club in Ghent and a summer festival. But now, with tagger.fm, he’s got serious.

Tagging music

Tagger.fm is an online service that allows people to bookmark or ‘tag’ music on radio and at concerts. How does it work? If you like a song currently being played on the radio then you can either tag the song online at tagger.fm (it publishes the playlists of major Belgian radio stations) or by sending an SMS to tagger.fm with the name of the station. Tagger.fm will subsequently send you information about the track and the artist (e.g. upcoming live events). Furthermore, in the process you’re building up a library of music that you like, which is information you can share with friends via Facebook or use to replay tracks (via Youtube).

It is a remarkably simple idea really. This is no last.fm or Pandora that streams music from a monster database. Instead, tagger.fm is little more than a clever aggregator of information (playlists of radio stations and concerts) that allows users to build their personal library of music information. This is only the start: today the service is limited to a number of Belgian radio stations and concerts. Also, the tagging via SMS may still be somewhat cumbersome and a little expensive. But the roadmap is clear: in a few years time we will be tagging music anywhere, anytime (in a club, in the car, in a shop, at the movies, etc) via a quick handling of our mobile phone.

IBBT spin-off

You can find Frederik in Ghent at the IBBT, the Flemish institute for broadband technologies. As one of four Flemish strategic research institutes, the IBBT facilitates and invests in ICT-related innovation projects in a broad range of areas, from eHealth and New Media to eGovernment and mobility & logistics. While most of its projects are collaborative efforts between established companies and universities, it does actually host some projects onsite in its incubation centre iCubes. This is where you can find tagger.fm. In fact, tagger.fm went through the entire incubation process at IBBT. While Frederik had done much legwork to develop the original idea, it is at the IBBT’s Bootcamp programme that the business plan began to take proper shape. At this IBBT-run programme, a select group of entrepreneurs are given the opportunity to test their plans against an experienced jury. The programme also serves as a match-making platform whereby the people with the idea are put in touch with potential partners or investors. It is here that Frederik first connected with Bart De Waele, an experience internet entrepreneur and founder of web agency Netlash. With a thoroughly queried business plan and reinforced management team, tagger.fm made the grade to become an IBBT spin-off company. IBBT not only offered logistical support via its incubation centre but also decided to invest in the company via its venture capital fund, iVenture. The cards have been dealt—now it’s up to Frederik and his team to develop the idea into a business.

Not the Facebook approach

In explaining his strategy, Frederik compares the Facebook approach with the Netlog approach (the Ghent based social networking service that is nipping at the heels of Facebook). While Facebook could fund its expansion with a deep well of capital, Netlog had to do it stepwise and show an ability to generate cash early on. Tagger.fm is taking its cue from Netlog. Today, the service is limited to Belgian radio stations and concerts. Also, the technology remains reasonably simple. For example, it is possible, technically speaking, to let your mobile phone recognise tracks simply by ‘listening’ to them (by matching the recorded audio file to a huge database). But that’s for a later stage. At present, tagger.fm is focused on making the business model work. It is partnering with radio stations, concert organisers and music producers to explore possible win-win arrangements. Indeed, tagger.fm is able to offer its partners something unique: detailed information about its customers.

Tell the world

Looking back, Frederik has a couple of tips for would-be entrepreneurs. Firstly, keep at it—don’t give up. As mentioned earlier, tagger.fm is no coincidence—it lived in Frederik’s mind for years. Secondly, use the tools and resources available. There are so many events for inspiration and useful contacts (e.g. Open Coffee, Betagroup – see Jean Derely’s interview). Attend as many as you can. Frederik attended competitions, applied for funding from various sources—and it worked, it got him into Bootcamp and the IBBT’s incubation programme. Thirdly, partner with other organisations. The market, especially the web scene, changes so rapidly that it is impossible to succeed alone. You need to open it up; tell the world. It’s not about your site (that should evolve); it’s about your brand.