The Wall Street Journal is reporting here that SoundCloud, the social sound platform company, has raised $60MM from Institutional Venture Partners (IVP) and the Chernin Group (headed by Peter Chernin from News Corp.) at a $700MM valuation. Previous investors also participated in the round, including Kleiner Perkins Caufield & Byers, GGV Capital, Index Ventures and Union Square Ventures.
The deal apparently closed several months ago but only announced today for fears it would impact negotiations with music labels as it is potentially looking to license some songs, according to Re/Code, pitting it against Spotify and Rdio. SoundCloud currently facilitates the recording and uploading of music and lets people easily share them privately with their friends or publicly to blogs, sites and social networks. The Company offers free accounts to amateur creators, with more advanced users able to upgrade to premium accounts for advanced features like statistics, controlled distribution and custom branding. Users upload about 12 hours of audio every minute, according to the company.
SoundCloud was founded in 2007 by Swedish entrepreneurs Alex Ljung and Eric Wahlforss, and has five offices around the world, including London, New York, San Francisco and Sofia, Bulgaria. This comes on the heels of Spotify, another European music startup, raising $250MM at a $4Bn valuation in November 2013.