SoundCloud Gets New Funding as CEO Steps Aside
- Author: Essie Rivera Aug 17, 2017,
Aug 17, 2017, 6:58
As rumors suggested earlier this month, SoundCloud has officially confirmed that it has secured investments from The Raine Group and Temasek. The round of funding, which was the largest in the company's history, came from The Raine Group and Temasek. That may well be the case, but radical changes may be ahead for the company, given that the new round, $169.5 million, is said to have been raised on a $150 million valuation. Although co-founder Alexander Ljung will stay on as Chairman of the board, the top executive role will now be filled by Kerry Trainor, who previously headed up video sharing platform Vimeo. At that time Co-founder Alex Ljung said: " we continue to be confident the changes made last week put us on our path to profitability", and then fired 173 staff and said it was closing its London and San Francisco offices to focus on Berlin and NY.
"If I could show to you the number of people who have been calling us, expressing fear about it going away, you would be shocked", said Davis, who will join SoundCloud's board.
Editor's Remarks: The audio distribution platform, which allows up-and-coming artists to upload and promote their music, has been struggling for cash and had to lay off 40% of its staff last month.
"This financing means Soundcloud remains strong and independent", Ljung wrote in a blog post. "We see a strong, independent future for the company". "As I said, SoundCloud is here to stay".
Ljung and SoundCloud co-founder Eric Wahlforss will remain with the company they founded a decade ago.
Former Vimeo CEO Kerry Trainor will replace founder Alex Ljung as chief executive.
Concerned users had been backing up their Soundcloud uploads, anxious the site would go offline. Trainor said SoundCloud will continue to offer the suscriptions, but that it won't be the central focus of the company.