Total amount raised
$542.8 Millions
Latest funding date
2/1/2020
Location
SoundCloud has successfully raised significant funding through multiple rounds, attracting notable investors such as Sirius XM and Temasek Holdings. The platform offers a unique space for users to create, share, and listen to music online.
Keep reading to explore the intricacies of SoundCloud's fundraising journey and the investors backing this innovative platform.
What Is SoundCloud?
SoundCloud, founded in 2007 by Alexander Ljung and Eric Wahlforss, is a social sound platform based in Berlin, Germany. The platform allows users to create, share, and discover a wide array of sounds, connecting creators and fans globally.
With a workforce of 251-500 employees, SoundCloud offers features like instant recording, uploading, and sharing of sounds, along with detailed stats and feedback. The platform supports a diverse creator community and provides services such as SoundCloud Go+ for offline listening and an ad-free experience.
SoundCloud's mission is to empower sound creators to share their work and receive feedback from the community, fostering a vibrant and interactive environment for music enthusiasts worldwide.
How Much Funding Has SoundCloud Raised?
- Seed Round
- Amount Raised: Not publicly disclosed
- Date: March 2009
- Lead Investors: Atlantic Labs
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the platform and develop initial features.
- Series A
- Amount Raised: €2.5M
- Date: April 2009
- Lead Investors: Doughty Hanson & Co
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's user base and enhance technical infrastructure.
- Series B
- Amount Raised: $10M
- Date: January 2011
- Lead Investors: Index Ventures, Union Square Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market presence.
- Series C
- Amount Raised: $50M
- Date: January 2012
- Lead Investors: Kleiner Perkins
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and introduce new features.
- Series D
- Amount Raised: $60M
- Date: January 2014
- Lead Investors: IVP, TCG
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support international expansion and enhance user engagement.
- Debt Financing
- Amount Raised: $35M
- Date: January 2016
- Lead Investors: Tennenbaum Capital Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To address financial stability and operational costs.
- Series E
- Amount Raised: $70M
- Date: June 2016
- Lead Investors: Twitter Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance platform capabilities and user experience.
- Debt Financing
- Amount Raised: $70M
- Date: March 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To manage financial restructuring and support ongoing operations.
- Series F
- Amount Raised: $169.5M
- Date: August 2017
- Lead Investors: Temasek Holdings, The Raine Group
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To stabilize the company financially and invest in growth initiatives.
- Corporate Round
- Amount Raised: $75M
- Date: February 2020
- Lead Investors: Sirius XM
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate product development and launch new services.
Total Amount Raised: $614M. Current Valuation: Not publicly disclosed.
Key Investors
- Sirius XM
- Details: Sirius XM is a satellite radio and online radio service provider, known for its extensive range of channels and exclusive content. The company also owns Pandora, a major streaming service.
- Investment Focus Areas: Media, entertainment, technology
- Notable Investments: Pandora, SoundCloud
- Temasek Holdings
- Details: Temasek Holdings is a Singaporean investment company owned by the Government of Singapore. It has a diverse portfolio spanning various sectors globally.
- Investment Focus Areas: Financial services, telecommunications, media, technology
- Notable Investments: Alibaba, Airbnb
- The Raine Group
- Details: The Raine Group is a global merchant bank focused on technology, media, and telecommunications. It provides advisory services and capital to growth companies.
- Investment Focus Areas: Technology, media, telecommunications
- Notable Investments: DraftKings, Vice Media
- Twitter Ventures
- Details: Twitter Ventures is the investment arm of Twitter, focusing on strategic investments that align with Twitter's business objectives. It aims to support innovative companies in the social media and technology sectors.
- Investment Focus Areas: Social media, technology
- Notable Investments: SoundCloud, Swarm
- Kleiner Perkins
- Details: Kleiner Perkins is a venture capital firm specializing in investing in early-stage and growth companies. It has a long history of backing successful technology and life sciences companies.
- Investment Focus Areas: Technology, life sciences
- Notable Investments: Google, Amazon
What's Next for SoundCloud?
SoundCloud's future looks promising with significant opportunities on the horizon. The platform aims to deepen connections between creators and listeners, leveraging its partnership with SiriusXM and Pandora. With a combined audience of 100 million unique listeners in the US, SoundCloud is poised to enhance its product offerings and launch new services, potentially driving substantial growth.
Future fundraising opportunities appear bright, especially with the strategic backing of SiriusXM. This investment not only provides capital flexibility but also opens doors for potential acquisitions. However, SoundCloud must navigate challenges such as licensing issues and stiff competition from other streaming services to maintain its growth trajectory.
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