SoundCloud has simply closed the required funding round to maintain the struggling music service afloat. CEO Alex Ljung will step apart although stay chairman as former Vimeo CEO Kerry Trainor replaces him. Mike Weissman will turn into COO as co-founder and CTO Eric Wahlforss turns into chief product officer. Raine Group and Temasek have stepped in to steer the brand new funding spherical.
SoundCloud laid off forty% of its inventory final month, with 173 staff departing in an effort to chop prices. The corporate solely had sufficient runway left to final into This fall, and immediately’s investor choice was seen as a do-or-die second for the corporate. Now it can have the chance to attempt to proper the ship, or sail into a longtime port by way of acquisition.
SoundCloud declined to share the valuation or amount of the brand new funding spherical. Yesterday, Axios reported the corporate was elevating $169.5 million at a $one hundred fifty million pre-cash valuation. That’s a steep decline in worth from the $seven hundred million it was valued at in final earlier funding rounds. The brand new Collection F spherical supposedly provides Raine and Temasek liquidation preferences that override all earlier buyers, and the Collection E buyers are getting their preferences lowered by forty%.
SoundCloud says its complete income is now at a $one hundred million annual run-fee. If it could hold prices low and develop that quantity, it might ultimately get to interrupt even and not want infusions of investor capital.
Featured Picture: TechCrunch
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