Imeem is a social network that made for music fans. The problem with their business model is having to deal with the music industry itself and dealing with all of the licensing fees and record labels. The company has been increasing revenue by charging for downloads.
The company was in such a bad financial position that they almost considered shutting down. However the company raised funding earlier this month to keep them running in business. The investors and the dollar amount involved are not clear, but rumor has it that the previous investors are involved.
Imeem had previously raised $18.8 million in funding from First Round, Sequoia, Warner Brothers, and Morgenthalter Ventures. Other angel investors include Mark Goines, Ron Conway, Geoff Ralston, and Sy Fahimi.
On May 20, Imeem will have an application released for the iPhone as well. The application will have the ability to create custom playlists, have personalized music recommendations, and stream playlists from their Imeem profiles. The application will be free.