Audio platform SoundCloud has closed a series D funding, raising $60 million ot a total valuation of $700 million. The round was led by led by Institutional Venture Partners along with the Chernin Group. In an statement, SoundCloud said it will use the money “to grow more rapidly in product, personnel and expansion in mobile efforts,” but the company also likely has other plans, as well.
In Talks With Major Labels
But sources suggest that SoundCloud could to use the cash to close ongoing negotiations with major labels to l icense their songs for the platform.
Soundcloud is hugely popular, but most of the music uploaded and played there is unlicensed. That's stopped SoundCloud from cutting partnerships with other high profile services, like Twitter's ill fated music app and some artists.
The YouTube of Audio
In a statement, lead investor IVP says its focus is on making SoundCloud the YouTube of audio:
“SoundCloud is the YouTube of Audio – Our core investment thesis for SoundCloud is centered around our belief that SoundCloud will become the dominant online digital delivery platform for audio in much the same way that YouTube has become the dominant online platform for video. YouTube is the most fundamentally disruptive thing to happen to video content since the advent of cable TV, and it is not just the dominant online video platform, it is also now one of the leading search platforms, social media platforms, and smartphone apps.”