SoundCloud Valued at $700 Million
The Wall Street Journal just revealed that SoundCloud's newest round of funding has pushed the valuation of the popular music platform to a whopping $700 million. Institutional Venture Partners and the Chernin Group were the primary investors, as SoundCloud received more than $60 million in funding.
A spokeswoman for SoundCloud said, “This investment will allow SoundCloud to grow more rapidly in product, personnel and expansion in mobile efforts.” SoundCloud has become a wildly successful company, and this investment makes it clear they have no intention on slowing down.
Institutional Venture Partners released a glowing blog post today about their perception of SoundCloud. The blog post, co-written by Somesh Dash and Dennis Phelps, says, “Our core investment thesis for SoundCloud is centered around our belief that SoundCloud will become the dominant online digital delivery platform for audio in much the same way that YouTube has become the dominant online platform for video.” The confidence by Institutional Venture Partners is inspiring, as the company's past investments include Twitter, Netflix, Dropbox, Zynga, and Snapchat. For many EDM listeners, SoundCloud is already the dominant online audio platform. However, with Spotify's recent $4 billion valuation, SoundCloud still has a long journey before it becomes the dominant online audio platform in the eyes of the general public.
It will be interesting to see how SoundCloud utilizes their $60 million of funding. According to SoundCloud cofounder Alexander Ljung, the platform currently has 250 million users. If SoundCloud can figure out how to further monetize the platform without angering its users, they can certainly become the dominant online audio platform that Institutional Venture Partners envisions.
What do you think about SoundCloud's $700 million valuation and $60 million of funding? Let us know in the comments below!