SoundCloud have managed to acquire a massive $70 million in loan funding, earlier than their 2015 accounts predicted they would need to raise funds.
According to new filings with the Companies House in the UK SoundCloud just raised $70 million in funding for their open music streaming platform. The documents revealed that SoundCloud had raised the loan from Kreos Capital’s fifth debt fund along with the Davidson Technology Growth Debt Fund.
SoundCloud predicted in their 2015 accounts that they wouldn’t have sufficient funds by the end of 2017, and even predicted that it could be earlier – as it was. They said in 2015:
“Whilst the directors believe that the group will have sufficient funds to continue to meet its liabilities through 31 December 2017, the risks and uncertainties may cause the company to run out of cash earlier than that date, and would require the group to raise additional funds which are not currently planned. These matters give rise to a material uncertainty about the group’s ability to continue as a going concern.”
It was only last January 2016 that SoundCloud last raised a round of debt funding, raising roughly $35 million from Tennenbaum Capital Partners. Later last year in June, SoundCloud went on to another round of funding which featured major contributor Twitter Ventures, investment firm for Twitter, raising $70 million from Twitter Ventures as part of a $100 million round.
SoundCloud haven’t responded for a comment so far.