Why Entertainment Founders Need to Shift from Passion-Driven to Profit-for-Purpose

Over the last 12 months, I’ve spoken to many founders building within the entertainment industry, and it’s very clear they’re incredibly passionate about making the world of entertainment better. While it’s inspiring to see them innovating within an industry they love, I believe passion may also be holding them back and the industry…

1. Passion’s Blind Spot
   Many founders in entertainment rely on personal experience to understand customer needs, assuming they know their market. But this familiarity can create blind spots, where key market signals are overlooked.
   
   
   

2. Balancing Creativity with Profit-First Thinking
   Focusing on profitability doesn’t mean sacrificing creativity—it’s often misunderstood as such by those in entertainment: the artists, musicians, actors, and athletes who are passionate people doing what they love. The difference is, in the startup world, there aren’t many investors willing to fund a purely passionate project. We need more founders who see an opportunity to make money within entertainment. The shift should be from “Here’s a product; how do I make money from it?” to “How do I make money from this product?”
   
   
   

   Being laser-focused on making money isn’t as much about the money itself as it is about balancing purpose with sustainability. When founders prioritize profit, they gain a sharper view of their market, enabling them to make strategic choices that support both impact and growth.
   
   
   

The Evolution of an Entertainment Founder into the Startup World

1. Adopting a Profit-for-Purpose Mindset
   A profit-for-purpose mindset challenges founders to dig deeper—validating their ideas with a broader view of what customers will truly pay for. Embrace the idea of making money to create a larger impact. This approach not only offers that “warm fuzzy feeling” of making a difference but also presents a vision investors can rally behind.
   
   
   

2. Greater External Collaboration
   By collaborating with innovators from other industries, entertainment founders can gain fresh insights and uncover new ways to approach their market.

   It’s likely that those who will drive real change in entertainment won’t come solely from within the industry. A great example is Spotify’s founders, Daniel Ek and Martin Lorentzon, who brought fresh perspectives. Broadly, we’ve seen this with Uber, Airbnb, Stripe, PayPal, Square, Tesla, Alibaba, SpaceX, and Zoom—companies founded by individuals who didn’t come from the industries they disrupted. These founders set aside traditional norms, reimagined what was possible, and ultimately built some of the world’s most valuable companies.
   
   

Entertainment technology needs more “rockstars” from outside the industry. Let’s use the knowledge and networks from within to create stronger incentives for those from outside to bring new innovation.