Two music businesses in Barry will get a share of £700,000 in Welsh Government funding.
The Memo Arts Centre is one of 21 successful applicants in the latest round of Creative Wales' Music Creative Fund.
The Barry venue applied for funding to install a new high-quality PA system.
Memo chief executive Kate Long said: "This upgrade will significantly strengthen our capacity to innovate and increase the scale and diversity of our live music programme."
"The funding will also help further our in-house delivery of grassroots original music performances and enhance our partnerships with music promoters, touring artists, and emerging creatives, youth-led showcases and co-productions."
Dann Hume Productions, based at the Hymn Studios in Barry, was another successful applicant in the third round of the fund, designed to help small and medium size music businesses boost their work and their sustainability.
Grants of between £10,000 and £40,000 were available to venues, recording studios, rehearsal spaces and arts centres such as Clwb Ifor Bach, the Musicbox studios and Tramshed in Cardiff.
Culture Minister Jack Sergeant said "The live music industry in Wales is crucial to developing musicians and audiences across our country."
"Music businesses provide an important platform from which talent can be developed, nurtured and grown. This latest round of the Music Capital Fund demonstrates our continued commitment to supporting the infrastructure that makes Wales' music scene so vibrant."
"By investing in these 21 businesses, we're not just supporting individual enterprises - we're strengthening the communities they are part of and the entire Welsh music ecosystem for artists and audiences alike."

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