SoundCloud’s prayers have been answered as the audio distribution platform announced it closed its recent funding round with the total amount of $169.5 million collected. The company decided to end its funding to ensure its stable for the near future.
As a part of the funding deal, CEO Alex Ljung has agreed to step down with the arrival of former Vimeo CEO Kerry Trainor and Mike Weissman as COO. Ljung will stay on as a part of the team and focus on being the chairman of the company. SoundCloud’s funding rally has officially been recognized as its biggest funding round yet and has relieved investors and artists around the world. Ljung had the following statement about SoundCloud’s future and its new CEO:
“I’m happy to announce that together with investors The Raine Group and Temasek we’ve just wrapped up the largest financing round in the history of SoundCloud. This financing means SoundCloud remains strong, independent and here to stay. As I said, we’re not going anywhere… All of this together — the capital, the capital partners — with Kerry and Mike joining our team — it puts our company in a really great position to stay strong and remain independent. We see a strong, independent future for the company.”
Trainor has spoken highly of SoundCloud’s future goals and has put emphasis on focusing more on the content creators. She plans to create a more “robust creative toolkit” for the SoundCloud Unlimited service to increase the amount of subscriptions for the premium feature. Trainer said: “Millions of creators choose these tools to share their work with the world [and] that will remain at the focus and center of the company.”
According to Axios, there have been reports of a SoundCloud shareholder memo that said, “the future of the company hinged on a pending reorganization proposal.” The new proposal was apparently accepted and the deal proceeded to its finalization. As a part of the new deal, SoundCloud’s new and existing investors will receive Series F stock, a special common stock that is especially valuable due to its seniority and preference.