Soundcloud — the popular, but unprofitable platform that lets creators post and share music and other audio files — may have been unsuccessful (so far) in closing a new $100 million round of funding, but it’s not running out of money soon. The company has secured a $70 million round of debt funding from three new investors — Ares Capital, Kreos Capital, and Davidson Technology — which it will use to build out more technology, to hire more people, and to build “a financially sustainable platform.”
Soundcloud confirmed the debt round to us in a statement, after the funding was first uncovered by BI after it noticed a company filing earlier this week at Companies House, the UK company registrar.
“We are pleased to have secured a flexible $70 million credit line from Ares Capital, Kreos Capital and Davidson Technology that is ideally structured for a company with our strong credit rating and in our stage of growth,” a spokesperson for the company said in a statement. “This new funding will enable SoundCloud to strategically grow our technology and personnel resources to fuel our expected 2.5 times year-over-year growth in 2017, while building a financially sustainable platform on which our connected community of creators, listeners and curators can thrive for years to come.”
We’ve asked for comment on what is happening with that $100 million round as well as the valuation of the company. (Previous investors include Atlantic Labs, Doughty Hanson, Eniac Ventures, GGV, Index, IVP, Kleiner Perkins Caufield & Byers and Tennenbaum Capital Partners — which funded a previous debt round of $35 million — and Twitter — which invested $70 million in June 2016.
The $70 million credit line secured earlier this month and confirmed…