SoundCloud does have staying power after all.
The music streaming service was in dire straits as it was struggling to keep its head above water. On Friday, SoundCloud’s saving grace arrived as the company received the necessary funding to continue operating.
The company was bailed out by New York investment bank Raine Group, as well as Singapore sovereign wealth fund Temasek, which helped to bring in the new Series F funding round that amounted to $169.5 million. SoundCloud’s previous valuation was $700 million.
Surviving was a struggle for the company as it had to lay off 40% of its workforce last month, amounting to 173 workers, some of which had recently packed up and moved their lives to SoundCloud’s Berlin headquarters with the promise of a job.
Now, CEO Alex Ljung has stepped down following the company’s mishaps, and he will be replaced by former Vimeo CEO Kerry Trainor. “As I said @SoundCloud is here to stay. I’m very excited to announce that we’re ready and strong for decade II,” said Ljung.
Other management changes include Mike Weissman moving to COO of SoundCloud, while CTO and co-founder Eric Wahlforss will stay as chief product officer.
One of the reasons why SoundCloud has not had the same success as other music streaming services is the fact that many of its artists are semi-professional musicians who the service help discover, some of which are not backed by labels.