Musical.ly Closing $100 Million Funding Round At $500 Million Valuation For Social Music Videos

UPDATED: Effectively combining the stickiness of music with the reach of social is an aspiration for companies ranging from Facebook to Snapchat and dozens of startups. Musical.ly has found an answer that's gaining traction and investors are rewarding them.

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Shangahai based Musical.ly is closing in on a $100 million finding round at a whopping $500 million valuation.

Musical.ly allows fans to play with their favorite songs and create their own music videos.. There are similarities to Dubsmash and Vine, but Musical.ly creates loyal communities by adding a music focused social network that encourages interaction with both artists and other fans.

Investors Love 60 Million Users

While the ink is not yet dry, GGV Capital and Qiming Venture Partners will co-lead the round, with participation from Greylock Partners and DCM, according to TechCrunch. Such a substantial investment at a half billion dollar valuation is rare for all but the most successful apps. But Musical.ly reportedly has 60 million users, many of them U.S. teens.

The app is free and available got both iPhone and Android.