Connect with us

Report

SoundCloud saved by emergency funding

Published

on

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.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Breaking News

Tee Grizzley & Lil Durk Mixtape Coming Soon

Published

on

It looks like Detroit rapper Tee Grizzley is cooking up something with the Chiraq driller Lil Durk.

Yesterday (October 12), the Detroit rhymer revealed that he will soon drop a joint effort with Lil Durk.

“Y’all gone love when me and @lildurk drop our project ,” Tee wrote on Twitter,

 

Continue Reading

Report

Rapper XXXTentacion Shows Football Skills, Jukes Off Oppenant With Crazy Stiff Arm

Published

on

XXXTentacion has took over social medias in the hip hop community and underground scene a year ago now. From beefing with the untouchable Canadian Emcee to putting a white kid to the gallows pole, the floridian rapper shows no sign of slowing down.

Dating one of the hottest camgirl just for fun, it is now time to show something else. How ’bout football ?

In this short video the ‘look at me’ rapper is aptly named

Continue Reading

Breaking News

Doughboy Cashout Member Doughboy Roc Fatally Shot In West Detroit

Published

on

Doughboyz Cashout member found dead in his car on Detroit’s west side

Five years already that the young Detroit thugs had their nationnal breakout on WSHH, after rescuing 2 Chainz ass from what could have been the beat up of his life at Pandemonium. But luckily the Detroit savage where here to show love while 2 Chainz was, at that time, not the household name he is today.

Live & die by the gun. Incarcerated in August 2011, for Weapons & Felony Firearms offense, Roc wasn’t there that night but you can easily come to the conclusion he was about that life … released in July 2013, he had run-ins with the law for falling to pay child support or other drug and weapon offenses but never went back to jail.

However, Rodney Yeargin better known by his street name as ROC, was shot to death inside his car on Detroit’s west side. Police said that around 3:30 p.m. on Monday, the body of the 29 years-old rapper was found riddled with bullets. No suspect has yet been arrested.

Doughboyz Cashout, a brilliant crew of Southfield High School students, which was later signed by Young Jeezy through CTE. Doughboyz Cashout released Free Roc following his incarceration as he was one of the most prolific member of the crew. Roc’s last solo release was September’s Roc Vs Balboa.

Continue Reading
Advertisement

magazine

Most Popular