1

Spotify raises $350M; door is open for more; valuation exceeds $8-billion

spotify funding chart 638w

Rumor (and more rumor) has turned to apparent fact, as CNBC is reporting that Spotify has raised a new funding round of at least $350-million, led by Goldman Sachs.

The funding round closed on a “first close” basis, so new investors may yet join. When first rumored, the Wall Street Journal reported that Spotify was seeking $500-million. A second WSJ report put the target at $400-million. However slippery the rumored numbers might be, it seems likely that Spotify has been working on fundraising for several months.

The fresh capital is reportedly based on a valuation of $8-billion, though in the first swirl of substantiated rumor, including previous WSJ reports, it is not clear to us whether that benchmark includes the new funding or not. But it seems safe to say that Spotify is valued by investors at $8-billion or upward. The inevitable comparison is to Pandora, a public company whose market cap is always visible. Today, Pandora is valued at $3.7-billion.

The $350-million figure makes this the largest capital round in Spotify’s history, which goes back to a $22-million Series A in 2008. The most recent previous injection came in November, 2013, for $250-million. Today’s reporting brings the company’s total investment war chest to about $890-million.

 

Brad Hill

One Comment

  1. You actually make it seem really easy with
    your presentation but I find this topic to be really one thing which I think I’d never
    understand. It sort of feels too complicated and very broad for me.
    I am having a look forward on your subsequent
    put up, I’ll try to get the hang of it!

Leave a Reply

Your email address will not be published. Required fields are marked *