SoundCloud saved by emergency funding – DrillKing
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SoundCloud saved by emergency funding

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SoundCloud has just closed the necessary funding round to keep the struggling music service afloat.

It is a new start for SoundCloud as, CEO Alex Ljung steps aside and leaves his chair to former Vimeo CEO Kerry Trainor. Reportedly, Raine Group and Temasek have stepped in to lead the latest round, Series F, a funding round of $169.5 million.

Arcording to numerous media outlet, SoundCloud was going throught a bad time and laid off 40% of its staff last month in an effort to cut costs.

The company only had enough runway left to last into Q4, and today’s investor decision was viewed as a do-or-die moment for the company. Now it will have the opportunity to try to right the ship, or sail into an established port via acquisition.

SoundCloud declined to share the valuation or quantity of the new funding round. Yesterday, Axios reported the company was raising $169.5 million at a $150 million pre-money valuation. That’s a steep decline in value from the $700 million it was valued at in last previous funding rounds. The new Series F round supposedly gives Raine and Temasek liquidation preferences that override all previous investors, and the Series E investors are getting their preferences reduced by 40%.

SoundCloud says its total revenue is now at a $100 million annual run-rate. If it can keep costs low and grow that number, it may eventually get to break even and no longer need infusions of investor capital.

For now, music and other audio saved on SoundCloud is safe. But the company will need to find a way to make its subscription tiers more appealing and scale up its advertising despite having much less staff to drive the changes. If it can’t, SoundCloud could be back begging for cash in a year.

The new management should provide some additional confidence. I’d interviewed both Ljung and Wahlforss in the past, and neither had answers to the big questions facing SoundCloud about its product direction, business model, and the spurious copyright takedowns that have eroded its trust with musicians.

Trainor may be able to institute some more discipline at the startup. He was the CEO of Vimeo from 2012 to 2016, helping it to fend off bigger rivals like YouTube by doubling down on what was special about the service: a focus on high-quality artful film rather than amateur viral videos. That experience makes him a great fit to lead SoundCloud, which is fending off bigger rivals like Spotify and Apple Music.

SoundCloud’s best bet isn’t to battle them directly, but double down on the user uploaded indie music scene including garage demos, DJ sets, unofficial remixes, and miscellaneous audio you can’t find elsewhere. Whether it stays independent long term or tries to seduce an acquirer, SoundCloud will benefit from spotlighting its unique community of creators and hardcore listeners.

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Lil Pump & Smokepurpp Are Leaving Xanax In 2017

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It looks like Lil peep’s death worked at full capacity and successful rapper are starting to clean their act.

In fact, just 6 weeks after his death, major artists and upcoming acts have took a stand in the anti-Xan campaign. Today it’s Rap superstar Lil Pump took it to social medias to address that he will not take Xanax anymore. In different statement, people reported that Pump’s taste for the benzodiazepine drug was overwhelming and that he could pop, up to ten Xan a day.


Longtime friend and collaborator SmokePurpp also took the stance to say he will leave the drug in 2017. Travis Scott also commented on Purpp’s decision to leave this bad habit behind him. SmokePurpp has been signed to his Cactus Jack Record imprint since September 2017.

The rap-popularized narcotic was tied in the recent death of 21-year-old rapper Lil Peep after the manufactured drug was laced with Fentanyl. There is no official conviction to this day, but a young women of the name of Mariah Bons was tied to the event and Federal Agencies are currently investigating the case.

 

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Yung Berg Busted for Weed & Jailed After 9-Year-Old Warrant

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Yung Berg was jailed on a 9-year-old warrant.

Yung Berg was arrested back in October during the BET awards, after a a woman called the police and claimed he unwantedly wrapped his arms around her. when cops arrived at Christian’s hotel room, they found 2 rolled marijuana blunts which would not have resulted in his arrest. Following their intervention, Police officers ran his record and found that the rapper missed a court date from 2008 for another weed bust and was according to reports, later released.

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Rapper Yung Berg, also known as Christian Ward, which has been in the past year as a producer for household names in the industry was last seen at New York City Supreme Court on January 29, 2015, arrested for alleged domestic assault on his girlfriend at a NYC hotel on November 5, 2014. He was prosecuted for grabbing co-star and girlfriend Masika Tucker by the neck and beating her.

The rapper was later fired from the VH1 reality show Love & Hip Hop Hollywood due to the severity of the allegations.

We will keep you updated as the story develops.

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Rumors of a Supreme x Rolex Collaboration Spread On the Web

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Rumors spread on the web of a possible Supreme x Rolex Collaboration for 2018.

After the release of their most anticipated drop of the year and the last chapter to their FW17 collection dropping Thursday, Supreme bags headlines once again as rumors spread that they are in talk with Rolex for a 2018 collaboration. However, according to SC, a Rolex PR/Sponsoring representative currently denies a collaboration.

As for their first attempt to do unauthorized Louis Vuitton items, Supreme took the liberty to customize Submariners that boasts the “F**K EM” slogan back in 2013. The unauthorized limited edition wristwear was rumored to have been only a friends and family release, with just 20 units being produced selling for between $10,000 and $12,000 which were last seen for $50,000 on Stadium Goods in December 2015.

While this is a venture The Carlyle Group would be keen to see happening, there is no actual proof of such a collaboration but the streetwear mainstay has always kept its cards well-hidden and so who knows.

We will keep you updated as the story develops.

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