Spotify Closes New $100 Million Funding Round, U.S. Launch Nears
Spotify has closed another round of funding totalling $100 million based on a $1 billion valuation. (By comparison, Pandora's IPO this week valued the streaming music service at over $2 billion.) Spotify has been working on this deal for more than 6 months and in the end investors DST, Kleiner Perkins and Accel stepped up, according to Peter Kafka of AllThingsD. The timing could be further proof that insiders know that rising rumors of a July launch are true.
"We're signing the remaining deals as I speak," said Jonathan Forster, General Manager of Europe & Global Vice President of Ad Sales at Spotify, speaking at the Omnicom conference in London. "We won't launch before July 5th."
To make the labels happy. Spotify has reportedly agreed to a faster monetization strategy than they currently have. That could mean more restricted trials than its current ad-supported freemium model. Spotify has 10 million EU users with one 1 million subscribers paying 10 Euros a month for an ad free version with mobile options.