SoundCloud Raises €2.5m from Doughty Hanson Technology Ventures
SoundCloud, the internet audio platform which enables music professionals to send, receive and distribute music, today announced that it has received an investment of €2.5 million from Doughty Hanson Technology Ventures, a leading European venture capital investor, in its first institutional round of equity financing.
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SoundCloud provides a simple and efficient platform for music professionals to privately exchange music, allowing for easy collaboration and communication prior to a public release. With SoundCloud, musicians can easily send and receive studio-quality tracks without cluttering up their email inbox, needing to make use of generic file sending services or having any specialist technical expertise.
SoundCloud was founded in 2007 and raised seed financing from business angels including Christophe Maire and Peter Schüpbach, founders of music production software Ableton AG, music producer Chris Zippel, and internet entrepreneurs Tariq Krim and Felix Petersen. The Company launched its service in October 2008 and since then has attracted more than 100,000 registered users.
Alexander Ljung, Co-Founder and CEO of SoundCloud, added: “SoundCloud’s business proposition is based on bringing web innovation to the music industry and empowering those who create and promote music globally. Doughty Hanson demonstrated early on a clear understanding both of our business proposition and of the music industry, and already has a strong track record in backing internet- companies. This funding, combined with the strong operational and strategic experience they bring to the business, supports our ambitious expansion plans and positions us well for the next stage in the company’s development.”
Stefan Tirtey, Partner at Doughty Hanson Technology Ventures who joins the Board of SoundCloud, commented: “SoundCloud has all the qualities we look for in a business: a solid product solving a real problem, a proven business model, and a capable and ambitious founder team. We believe that Soundcloud has the potential to revolutionize the production and distribution process for digital music and this funding will enable the company to build on its success to date and to exploit its significant global growth potential.”
For further information, please contact:
For SoundCloud
Alexander Ljung, Tel: +49 1577 6813208
For Doughty Hanson Technology Ventures
Annabel O’Connor, Capital MS&L, +44 (0)20 7307 5339
Lutz Glosh, A&B Financial Dynamics, +49 69 92037 110
About SoundCloud Limited
SoundCloud is a Berlin-based startup that allows users to move music fast and easily via the web. The platform removes the issues associated with receiving, sending and distributing music for artists, record labels and other music professionals by moving music via the Internet. SoundCloud is free to use and has no restrictions on file size but allows users to access additional, paid for features such as detailed usage statistics and customizable DropBoxes by upgrading to a Pro account.
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About Doughty Hanson Technology Ventures
Doughty Hanson Technology Ventures aims to help talented entrepreneurs in Europe to build world-class technology companies.
Founded in 2000, Doughty Hanson Technology Ventures is an early-stage, venture capital fund with $272 million under management. Operating from London, Munich, and San Francisco, the Fund is independently managed by a dedicated team of professionals with substantial personal experience in the technology and financial sectors. The fund focuses on emerging technology sectors in the areas of software, hardware, the internet and clean technologies.
Having established a long track record of successful venture capital investments in Europe and the United States, the team relies on its experience, personal networks and the resources of Doughty Hanson & Co, one of Europe's largest independent private equity firms, to help identify and grow investment opportunities
