SoundCloud Loses CEO But Stays Afloat With New $215 Million Investment

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According to Ljung, SoundCloud just wrapped up its largest financing round, receiving $170m (£135m) from The Raine Group and Temasek.

Ljung also announced that Kerry Trainor and Michael Weissman, former executives of video-sharing platform Vimeo, will take over as CEO and COO of SoundCloud, respectively.

"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", said a representative for SoundCloud.

As part of the investments, SoundCloud is adding talent from two former Vimeo executives.

Musicians already turn to SoundCloud to invite unusually public collaborations on unfinished works, promote new songs - or get private feedback before releasing a track to the world.

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"SoundCloud is the largest open audio platform in the world", Trainor said.

Should the investment deal, referred to as Project Sonic, close tomorrow, The Raine Group, Temasek, and all other existing investors would receive Series F stock, a special class of common stock that has seniority and preference, while existing Series E investors would have their liquidity preference cut by over 40 percent.

SoundCloud spent years negotiating with record labels to build a $9.99 per month subscription service to match Spotify and Apple, but the resulting product hasn't gained traction. As I said, we're not going anywhere.

SoundCloud last reported about 170 million users and saw significant increases in creator subscriptions, uploads, listening time and listener subscriptions over the past 12 months. Total revenue has more than doubled to more than a $100 million annual run-rate this year. "It's unique. We just closed out the first decade and created a really unique platform that impacts global music every day", said Ljung.