As if the streaming music space wasn't crowded enough, another startup named SoundCloud is about to secure "significant" backing. Citing sources,
MediaMemo reports that Index Ventures and Union Square Ventures will lead a round for the
Berlin-based streaming music service. Sources tell MediaMemo that VCs have been competing "fiercely" to get in on the three-year-old company, which has already raised $3.3 million from Doughty Hanson
Technology Ventures. Why, when, as MediaMemo notes, "online music has been a black hole for investors for a very long time."
For one, SoundCloud isn't dependent on deals with the major
music labels. Rather, it encourages professional and amateur musicians to share their own music with each other and with the public via cloud-based files. Presently, the service is offered free to
most users, while it charges up to $700 a year to those who more storage and premium features.
Read the whole story at MediaMemo »
