InternetQ Investors throw SoundCloud a much-needed lifeline
Troubled music-streaming community site, SoundCloud, has secured investment from The Raine Group and Temasek; ex-Vimeo execs Kerry Trainor and Michael Weissman, will become CEO and COO respectively as part of the deal. The platform is said to have burned through over $230m in funding and $70m in debt, as it failed to monetise its offering and shifted its focus to challenge Spotify. After laying off 40% of its staff in July, SoundCloud was seeking $169.5m at a pre-money valuation of $150m, compared to a $700m valuation in previous rounds. 

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Following up earlier reports of an imminent stockholder vote on a last-minute investment deal to keep SOUNDCLOUD afloat, the company has announced an agreement to secure significant investment from global merchant bank THE RAINE GROUP and investment company TEMASEK, VARIETY reports. Also in the deal, former VIMEO CEO KERRY TRAINOR is named CEO and ex-VIMEO exec MICHAEL WEISSMAN is named COO.

SOUNDCLOUD co-founder/CEO ALEXANDER LJUNG stays on as Chairman Of The Board, while co-founder ERIC WAHLFORSS remains Chief Product Officer.

A company statement announced: “The investment will ensure a strong, independent future for SOUNDCLOUD, funding deeper development and marketing of its core tools used by millions of audio creators — musicians, DJs, producers, labels, managers and podcasters — that fuel SOUNDCLOUD’s one-of-a-kind, creator-driven listener experience.”

“Now in its 10th year, I’m proud to say SOUNDCLOUD stands as an indispensable part of global music culture," LJUNG said. "I look forward to fully dedicating my time to leading the board and helping drive SOUNDCLOUD’s long term strategic vision, and forging strategic partnerships and connections with industry partners and our one-of-a-kind creative community. With KERRY’s love of music and sharp business acumen, I know SOUNDCLOUD is positioned for continued success for many years to come.”

“As a huge fan of the SOUNDCLOUD platform since its founding, I deeply admire what ALEX and ERIC have built," TRAINOR said. "There is only one SOUNDCLOUD and its importance to creators and music culture is undeniable. I’m very excited to join this talented team and build the next chapter of growth around SOUNDCLOUD’s mission to empower audio creators. I look forward to sharing more about our plan and path forward in the months ahead.”

“SOUNDCLOUD is a unique and essential music platform for new and developing artists,” RAINE GROUP partner FRED DAVIS said. “For 10 years, SOUNDCLOUD has been the birthplace of genre-breaking musical movements in Electronica and Hip-Hop. We are excited to partner with TEMASEK on this investment and are confident our involvement can ensure it remains the most artist-friendly music creation and streaming platform in the world.”

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