SoundCloud wasn't in good shape this quarter. First, they had to shut down two of their offices, then they were forced to lay off almost half of their workforce — which propelled the #HireASoundClouder movement on the internet.
As if that wasn’t enough, news circulated that the company didn't have enough money to see itself through summer. But SoundCloud dispelled the rumor and said they had sufficient funding for the entire quarter.
Just when everyone thought SoundCloud was ready to raise the white flag, it was able to secure at least $170 million from investors in a new round of funding.
But the new lease on life didn't come without strings. Investors had strict conditions in place in exchange for the funding — which included asking founder and CEO Alex Ljung to step down from his position.
Despite it all, SoundCloud seems to be taking everything in stride. They've welcomed the change in management with open arms and are hard at work to further improve their platform as well as the services they offer.
Earlier this year, many publications claimed that SoundCloud didn't have the money to sustain itself for the rest of the fourth quarter. SoundCloud quickly defended itself and said they had enough financial resources to keep the platform running for the rest of Q4.
Sources close to the company reported that SoundCloud was ready to sell to anyone willing to buy for more than $250 million — a far cry from what the company was worth just over a year ago.
The clock was ticking for SoundCloud and it was apparent the company was barely clinging to life.
But thankfully SoundCloud gained another chance when two investors granted a fund of $170 million. The funding came from The Raine Group and Temasek. According to Ljung, this is the biggest financing round in SoundCloud history.
Although the investors were SoundCloud's saving grace, they had strict conditions in place in exchange for their financial assistance.
They asked Alex Ljung to step down as the CEO, to be replaced by former Vimeo leader Mike Trainor.
Former head of Vimeo, Mike Trainor. Image credit: Billboard
Trainor appointed his fellow Vimeo-alumnus Mike Weissman as the new COO to work alongside him.
Image credit: Mike Weissman on Vimeo
This doesn't mean Alex Ljung is being kicked out of the company. The co-founder is said to be taking on the role of the chairman and has made it clear that he will be staying with SoundCloud for the long run.
Since receiving emergency financial assistance, SoundCloud has been working nonstop to improve their platform and services.
Back in 2015, SoundCloud launched SoundCloud Pulse, their creator companion app built with analytics monitoring. This year, SoundCloud Pulse is getting a makeover — giving creators access to bigger and better data.
Image credit: The SoundCloud Blog
The new SoundCloud Pulse has dedicated sections for Top Listeners, Top Cities, and Top Countries. The newly added data sets are integrated into the app to help creators understand where they get the most engagement.
With more in-depth data, creators like yourself will have a much easier time developing a more effective marketing strategy.
To really maximize your reach on SoundCloud, try combining the new SoundCloud Pulse features with an army of high-quality SoundCloud Plays from a reputable provider. An impressive number of SoundCloud Plays can draw more organic listeners to your track by making it appear buzz-worthy in the eyes (or ears) of ordinary people, who will flock to your tracks when they see how popular they are.
SoundCloud also announced that they are working on integrating their platform with Google Home. If and when this happens, listeners will have a much easier time accessing independent music and audio content with simple voice commands.
Image credit: The SoundCloud Blog
The emergency funding from investors gave SoundCloud more than just a new lease on life – it's also helping shape the future of the independent music scene for both creators and listeners alike.
Despite financial hardship, SoundCloud has proven it's a pretty agile company that can quickly adapt to new situations.
SoundCloud has done a lot for independent music makers, audio content creators, and avid fans worldwide. This platform has given people an opportunity to turn their passion into a sustainable career.
And now they're gearing up for decade two. Just when everyone thought SoundCloud was about to give up, they surprise everyone with an unprecedented win with the help of some big investors.
As a SoundCloud creator, you now have a better chance of reaching more listeners from around the globe — you just have to think fast and act fast like SoundCloud.
Stop waiting on organic growth and buy yourself an impressive number of SoundCloud Plays from a tried-and-tested provider. Aggressively share your music using different social media platforms, collaborate with fellow artists on SoundCloud, and most importantly, help the community thrive by contributing and engaging with others.
Date: October 9, 2017 / Categories: New Stuff, / Author: Mariko
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