In that sense, record labels are like VCs that also provide PR. For the amount of the investment that both labels and tech VCs make, its quite normal in our society to take an equity cut rather than a flat rate. Making the analogy to VCs also relates a lot better to the odds of failure, given that labels lose money on most of the bands they sign. And similarly to founders that don't know how to negotiate for good terms on their funding, many bands are also poor negotiators.