Spotify raises $350 in new funding round

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Spotify Logo

Spotify, the music streaming company, has just raised $350 million, according to CNBC, with Goldman Sachs contributing to the funds.

In the past, Spotify raised $537.8 million from investors such as Kleiner Perkins, Fidelity Ventures, and Technology Crossover Ventures.

An interesting time in the music streaming space for Spotify

Last month, The Wall Street Journal reported that Spotify was almost about to close a $400 million round of funding from Abud Dhabi’s sovereign wealth fund and Goldman Sachs, but Spotify has yet to confirm the new funding.

The claimed funding comes at a very interesting and changeable time in the streaming music space. On Friday, Grooveshark, the streaming music website, shut down, after spending years tangled in legal battles with record labels.

“We started out nearly ten years ago with the goal of helping fans share and discover music”, the company said in on its home page. “But despite the best of intentions, we made very serious mistakes. We failed to secure licenses from rights holders for the vast amount of music on the service. That was wrong. We apologize. Without reservation”.

Furthermore, Jay Z’s new music streaming service called Tidal has faced a barrage of criticism. The service, which is backed by artists such as Madonna and Kanye West, has fallen quickly down the App Store charts. It had been ranked in the top 20 free apps in the App Store in the US, but has now fallen outside the top 100. Jay Z has spoken out against the negative press Tidal received via Twitter earlier in the week.

SOURCE: CBNC

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