SoundCloud Saved at the Last Minute by New Funding Round

SoundCloud CEO Alex Ljung is fighting to keep the company alive

SoundCloud CEO Alex Ljung is fighting to keep the company alive

SoundCloud announced Friday that the company had secured a new round of funding.

SoundCloud's current pre-money valuation is $150 million a sharp decline from its previous valuation of $700 million, and it is now asking for $170 million to keep the website alive. This financing means SoundCloud remains strong, independent and here to stay.

SoundCloud, an online network for sharing and enjoying music, had been crashing.

"In the event that the transaction does not close and in the event SoundCloud does not otherwise obtain additional funding, based on current cashflow forecasts, SoundCloud faces liquidity concerns in the near term".

Still, wherever the cash came from, it's good news for SoundCloud fans and users. From prior Vimeo-fame (a platform we love!) comes Kerry Trainor and Mike Weissman, two awesome leaders who will be joining SoundCloud as CEO and COO, respectively. Trainor would also bring in a new chief operating officer, according to investor documents that lay out details of the new round.

"Now in its 10th year, I'm proud to say SOUNDCLOUD stands as an indispensable part of global music culture", LJUNG said.

According to Axios, the incoming "rescue investors", Raine Group and Temasek, would receive "preferential treatment", which potentially means worsened terms for older SoundCloud investors, making it more hard to recover the money they've invested.

SoundCloud lavishly spent money on offices around the world while its CEO galavanted at music festivals like a rock star. It also reportedly sought $1 billion in an acquisition deal previous year, as some companies apparently showed interest. Moving forward it's unclear what plans SoundCloud has to better monetize its service.

SoundCloud has been an essential music platform for both independent and major artists.

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