Spotify is reportedly in late-stage discussions to obtain 200-million dollars in new venture funding from Technology Crossover Ventures (TCV). Added to Spotify’s current funding total of $288-million, the new investment would raise the startup’s valuation by 41 percent. Spotify has received $288-million since its founding in 2008.
Technology Crossover Ventures invests in high-growth tech companies with a long-term horizon. TCV owns equity stakes in Zillow, Expedia, Facebook, Go Daddy, Genesys, Netflix, and many other companies. Year-to-date, RCV has invested at least $337-million dollars in some of its holdings.
Consumer-facing Internet music services have not been venture capital magnets for the most part. There is fear around the cost of content and the variability of that cost in the U.S. and around the world. At the same time, publicly traded Pandora is valued in the open market at $4.6-billion.
If the reports are true, and the number is accurate, Spotify’s imminent $488-million investment total is majestically higher than competing services Rdio ($17.5M), Slacker ($68.1M), Songza ($4.7M), SoundCloud ($63.3M), and 8tracks ($1.2M).