Fresh Investors and Exec Team Breathe New Life Into Struggling SoundCloud
With some much-needed cash, SoundCloud will be given another chance at remaining a successful, independent digital music service. The struggling company secured funds from The Raine Group, a boutique merchant bank, joined with the Singapore-based investment company, Temasek. In total, $169.5 million will be invested and a new executive team will take over in hopes of moving the company forward.
Founder and now former CEO, Alex Ljung, will remain on the team as chairman, and will be replaced by former Vimeo video platform CEO, Kerry Trainor. Michael Weissman, another former executive at Vimeo, was named SoundCloud’s chief operating officer. Although there have been several significant changes, Ljung still remains optimistic about the future of the company:
“All of this together — the capital, the capital partners — with Kerry and Mike joining our team — it puts our company in a really great position to stay strong and remain independent. We see a strong, independent future for the company,” Ljung said in an interview with Billboard.
Ljung also said that the recent decision to let go of 40 percent of its employees was a difficult one, but that it was the right thing to do to ensure the future independence of SoundCloud. The company is now reporting that revenue more than doubled to over $100 million annual run-rate this year. It has also seen double-digit gains in creator subscriptions, uploads, listening time and listener subscription over the past 12 months. This is definitely better news than the speculations back in July about having only enough money to survive for 80 more days.
With around 170 million users, SoundCloud seems to be safe from extinction for now. There is a thriving community of indie and underground artists, as well as passionate music lovers and listeners that give the company its unique value in the music industry. We hope to see things move in the right direction for SoundCloud and will be sure to post updates on the BPM Supreme blog – stay tuned!