SoundCloud raised $70 million in debt funding
Soundcloud secures a $70 million line of credit in order to be able the finance the music platform's sustainable (and profitable) growth over the next several years.This article originally appeared on Business Insider
Music streaming service SoundCloud has raised $70 million (£56 million) in debt funding, according to documents filed with Companies House in the UK.
The documents show that SoundCloud raised the loan from Kreos Capital's fifth debt fund, as well as the Davidson Technology Growth Debt Fund and Ares Capital. The loan was agreed on March 10, the documents show.
SoundCloud confirmed the debt funding round in a statement to Business Insider.
Here's the full statement from SoundCloud:
"We are pleased to have secured a flexible $70 million credit line from Ares Capital, Kreos Capital and Davidson Technology that is ideally structured for a company with our strong credit rating and in our stage of growth. This new funding will enable SoundCloud to strategically grow our technology and personnel resources to fuel our expected 2.5 times year-over-year growth in 2017, while building a financially sustainable platform on which our connected community of creators, listeners and curators can thrive for years to come."
SoundCloud last raised money in June 2016 when it raised around $70 million from Twitter Ventures, Twitter's investment arm, as part of a $100 million (£80 million) round.
Cover photo of Soundcloud Founder and CEO Alexander Ljung courtesy of Getty Images/Nadine Rupp