Stefan Glaenzer has admitted in court to sexually assaulting a female passenger on the London Tube network.
He will be sentenced on 20 December and is now on unconditional bail.
Glaenzer, tech investor and former chairman of Last.fm pleaded guilty to one count of sexual assault, which was witnessed by police.
Two similar incidents had also been reported. He said he was a long-term cannabis user and had been on "a drugs binge" at the time of the assault.
The multi-millionaire investor in technology start-ups must now sign the sex offenders register.
"This conviction has devastated him personally and professionally. He has lost his good character that he has maintained for his entire life," said Sallie Bennett-Jenkins QC in his defence.
Glaenzer told Westminster Magistrates Court he would seek help for his drug dependency.
However magistrate Jessica Baldwin told him that his drug use was "an aggravating feature" rather than "mitigation", reports the Evening Standard.
The case has been adjourned for pre-sentence reports.
"I am simply shocked and saddened," wrote TechCrunch's European editor Mike Butcher.
"As for his professional life as an investor and respected player on the internet start-up scene in London, one cannot predict the reaction of the community.
"Some will rally around him, conscious of his high standing and - till now - good reputation. Others will feel unable to based on this conviction and the sordid details of the case."
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