You were probably on the edge of your seat today thinking Soundcloud might be gone by tomorrow, and the situation was truly that dire. Thankfully, Soundcloud closed the necessary funding to stay afloat. In addition, CEO Alex Ljung will step aside and remain as Chairman while former Vimeo CEO Kerry Trainor takes the CEO job. The new funding comes from Raine Group and Temasek valued at $169.5 million.
Soundcloud declined to share the valuation or amount of new funding round. In earlier funding rounds the company was valued at $700 million but rumors now point to a valuation somewhere around $150 million. Reportedly the new investors receive preference over all previous investors, but it’s still better than letting the company and its valuation become nothing. The hope is that by keeping costs low and growing its revenues the company might not need further infusions.
As I said @SoundCloud is here to stay. I’m very excited to announce that we’re ready and strong for decade II. https://t.co/c78jEy9ubz
— Alexander Ljung (@alexanderljung) August 11, 2017
Source: Tech Crunch
