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Digital
Spotify begins new funding round, could result in $3.5 billion valuation
By CMU Editorial | Published on Monday 26 March 2012
Spotify has kicked off another big round of fundraising, according to various reports, looking for new investment that would give the streaming music platform an overall value in the region of $3.5 billion, which it’s clearly not worth, but then, few tech start-ups are worth the figures bandied about during funding rounds and IPOs, so why should the buzziest of the digital music start-ups be any different?
Though, that said, according to Business Insider, some possible investors have balked at that valuation, especially given Spotify is so dependent on content it doesn’t own and over which it has no exclusivity, and therefore declined on the offer to invest. But that’s not to say there isn’t some interest, even at that valuation, so the venture capital subsidy, received via Spotify, that is proving so useful to the major record companies just now could well continue for sometime yet.
