SoundCloud raises $35 million in debt funding
Tennenbaum Capital Partners, a Santa Monica-based investment firm, is the most recent company to get behind digital music titan SoundCloud. In a new report by Swedish website Digital, SoundCloud has raised around $35 million in debt funding, after a $60 million round was led by Index Venture Partners and the Chernin Group in January of 2014.
SoundCloud also has a potential option in the future to $70 million if need be, which would be delivered through convertible bonds.
SoundCloud confirmed the news to Tech.Eu:
“We can confirm that we secured a flexible credit line with Tennenbaum Capital Partners (TCP) early in 2015. It’s an attractive option for companies like SoundCloud that have a solid credit rating, and offers an appropriate funding option for a company at our growth stage.”
The news comes on the heels of a tumultuous summer for the Berlin-based streaming service, who, aside from competing with new services like Tidal and Apple Music, has come under fire for their copyright policy. In late November, for instance, a producer had more than four minutes of silence removed by SoundCloud for “copyright infringement.”
Via: Tech Crunch