Music streaming website Spotify has raised $100 million in funding at a $3 billion valuation. As part of the investment Coca-Cola will become a minor investor in the company. Of the $100 million round of funding, half of it is from Goldman Sachs and 10% of it is from Coca-Cola. Fidelity Investments put in about 15% of this investment round and the other investors are from the company’s existing investors. Coca-Cola and Spotify also have some kind of marketing partnership in place.
Spotify was founded in Sweden in 2006 and they launched in the United States last year. Now Spotify is available in 17 countries. This week Spotify launched in Ireland and Luxembourg. Spotify has 15 million users around the world and 4 million of them are paying subscribers. The company is not profitable yet though. The company lost $57 million on $236 million in revenue last year.
Last year Spotify raised $100 million from Kleiner Perkins and DST Global with a valuation of $1 billion. Some of the major record companies have minority positions in Spotify.
[New York Times]