Soundcloud Safe For Now After $170 Million Rescue Investment


The company, which laid off 40 percent of its staff in July, said in a blog post that the financing was raised from media-focused investment bank Raine Group of NY and Singapore's sovereign wealth fund Temasek.

As we said before, the existing SoundCloud investors aren't in the best of situations. For ten years, SoundCloud has been the birthplace of genre-breaking musical movements in Electronica and Hip Hop.

Trainor said the company will compete less directly with larger rivals Spotify and Apple Music, an acknowledgment that the company's costly years-long effort to build a rival subscription service wasn't successful. Axios says CEO Alexander Ljung infers in the memo that if the proposal is rejected, SoundCloud's ability to continue would be "a going concern". Ljung, who has served as the company's CEO, will be relinquishing that title to Kerry Trainor, former chief executive of Vimeo. "I look forward to sharing more about our plan and path forward in the months ahead".

Hopefully, this investment will allow for SoundCloud to remain a consistent player in the music industry for the foreseeable future. In particular, Chance The Rapper publicly announced his efforts to help rescue the platform that helped him gain prominence with his earlier mixtapes. Now it's asking investors for $169.5 million at a pre-money enterprise valuation of just $150 million, according to Axios' reliable business editor Dan Primack.

What are your thoughts on SoundCloud and its future? Let us know in the comments below! As well, many wondered what would happen to global music culture after a potential loss of the unique ecosystem cultivated by SoundCloud's free-for-all-style strategy. "SoundCloud can do more". For more information, visit: Raine, a boutique investment bank, has also backed Vice Media, DraftKings and Imagine Entertainment.

Just last July, SoundCloud dismissed 40 percent of its employees and closed the London and San Francisco offices.

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