Kleiner Perkins backs SoundCloud funding
The funding round for the Web audio host reportedly nets $50 million, which would give the company a $200 million valuation.
Web audio host SoundCloud announced a new funding round today led by Kleiner Perkins Caufield & Byers.
SoundCloud didn't reveal the size of the funding round, but TechCrunch reported the amount to be $50 million, giving the company a $200 million valuation.
In addition, Kleiner Perkins partner Mary Meeker will take an observer seat on the SoundCloud board, the company said in a statement. GGV Capital also participated in the round, which is expected to help the company grow more quickly.
"SoundCloud has seen exponential growth this year in terms of users and greatly evolved our product offerings," SoundCloud founder and CEO Alexander Ljung said in a blog post today. "With Kleiner Perkins' impeccable track record for recognizing and investing in companies with a long-term view, and their understanding and support for the potential of sound, we couldn't be more excited about working together."
Berlin-based SoundCloud, which was founded in 2008 by Ljung and Eric Wahlforss, launched as a sharing network for musicians looking to hawk their demos. It now has 5 million users and has expanded to include podcasts and audiobooks.
Two previous rounds of funding, totaling about $16 million, were backed by Union Square Ventures, Index Ventures, and Doughty Hanson Technology Ventures.