SoundCloud Takes On Debt Funding
Hip and unprofitable music streaming platform SoundCloud could be on the ropes, with reports the company has secured a $70 million round of debt funding from a trio of new investors.
“We are pleased to have secured a flexible $70 million credit line from Ares Capital, Kreos Capital and Davidson Technology that is ideally structured for a company with our strong credit rating and in our stage of growth,” a spokesperson for the company said in a statement.
“This new funding will enable SoundCloud to strategically grow our technology and personnel resources to fuel our expected 2.5 times year-over-year growth in 2017, while building a financially sustainable platform on which our connected community of creators, listeners and curators can thrive for years to come.”
Often seen as the Youtube of the music streaming world, SoundCloud has remained a popular destination for both musicians and listeners with 175 million users.
Although the company made moves towards profitability by introducing new premium subscription tiers last year, their struggle to raise funding in recent weeks suggests they still have a ways to go.