Spotify set to secure £125m investment

Spotify is on the verge of inking a deal with a US venture capital investor willing to pump $200m (£125m) into the streaming platform, according to Sky News. The new funding round apparently comes from Silicon Valley tech investor Technology Crossover Ventures (TCV), say Sky’s sources. California-based TCV’s current investments include Facebook, GroupOn and Go Daddy.

It reports that it is unclear exactly how big the stake being acquired by TCV in Spotify would be or at what price the transaction would value the music service.

Spotify reported in March that it had 6 million paying subscribers and 24 million active users, but is yet to update the media with a figure.

Earlier this week, rival Deezer announced it had reached 5 million paying subscribers worldwide – but this number included customers signed up via mobile phone tarrifs.

Deezer secured a $130m investment from Warner Music parent Access Industries in October last year.

Spotify’s latest financial statements from end of July showed revenues more than doubling from £159m in FY2011 to £365m in FY2012, but its net losses widened by more than £10m to £49.5m.

According to Sky, Spotify’s existing shareholders include prominent names from Wall Street and Silicon Valley, including Goldman Sachs, DST, Accel Partners and Kleiner Perkins. Coca-Cola Company became a minor shareholder in the company earlier this year

Source: Music Week