14 DAY TRIAL // SoundCloud has announced a major investment from several venture capital firms. Though the sum is undisclosed, it's pegged at $50 million, giving the company a valuation of $200 million, €154 million. It's a big sum, but the investment firms get a big chunk of the company in return.
"SoundCloud, the leading social sound platform, raised an undisclosed amount in a fundraising round led by Kleiner Perkins Caufield & Byers. GGV Capital also participated. The investment will allow SoundCloud to continue to expand more rapidly," the company revealed.
"SoundCloud has seen exponential growth this year in terms of users and greatly evolved our product offerings," Alexander Ljung, founder and CEO, said.
"With Kleiner Perkins' impeccable track record for recognizing and investing in companies with a long-term view, and their understanding and support for the potential of sound, we couldn't be more excited about working together," he added.
As part of the deal, Mary Meeker, a partner at Kleiner Perkins Caufield & Byers will be joining the SoundCloud board as an observer.
The site has been growing in popularity, especially in the last year and especially in the US. It started out as a platform aimed at artists wanting to showcase their latest creations and share them on blogs and any other websites.
It has pretty much cornered that market, SoundCloud is the place to be for any budding and accomplished artist alike, especially in electronic music.
But the site's founders have now set their sights on something much bigger, SoundCloud is aimed at becoming a YouTube for audio. It made it easy for users to not only upload audio tracks, but also record from the browser.
The mobile apps that SoundCloud debuted also help with that goal. With $50 million in its pockets, SoundCloud has to deliver on its promise.