Eric Wahlforrs and Alexander Ljung– the founders of SoundCloud, together with their friend Christian Springub launched “Dance.” This invention is a new electric bike subscription start-up for the music streaming service SoundCloud.
The founders, who are based in Berlin, are trying to capitalize on trendy e-bikes. These electronic bikes have surged in popularity amid the coronavirus pandemic. The reason is that the people who live in the city are looking for an alternative to public transportations.
Instead of selling e-bikes like any other entrepreneur, the founders want to build a community of subscribers worldwide through Dance.
Outright payment today is hard. Letting go of over $2000 instantly for an e-bike is impractical in today’s situation. However, it's nothing compared to how much trendy artists spend on increasing Plays on their SoundCloud songs. SoundCloud’s founders and their friends planned to create a community of subscribers all over the world. They firmly believe that paying a monthly subscription fee via an app is more customer-friendly than buying an e-bike outright.
Dance customers should save up €59 ($68) a month to finally own an “urban” e-bike. This type of e-bike travels around the speed of 15 mph or 25 kph. Another bonus is owners are entitled to free repairs when needed.
Moreover, e-bikes are enticing and attention-grabbing. Thus, it has the potential to attract thieves. But the inventors of Dance e-bikes promise that they will replace a Dance e-bike immediately once it is stolen. This is an assurance that you are really getting what you are paying for.
Furthermore, mainland China and Taiwan are the manufacturers of these e-bikes. According to CEO Quidenus-Wahlforss, they will hold an invite-only basis in Berlin in order to roll out around 200 e-bikes over the upcoming two weeks.
Wahlfoors also added that buying and owning an electronic bicycle is a hassle. For this reason, they want to create a frictionless e-bike subscription service. This will be done without upfront costs as well as all-inclusive services. Wahlforss also added that Dance is the most suitable solution for people who are looking for an environmentally friendly, healthy, joyful, and time-saving form of alternative transportation.
The company has been backed up by venture capital firm BlueYard with an undisclosed sum of funding. In addition, Neil Parikh– the founder and chief strategy office of mattress retailer Casper, Ilkka Paananen– the founder and CEO of mobile gaming firm Supercell, and Bjarke Ingels– the founder and chief executive of BIG Architects, also funded Dance.
Apart from the subscription model, SoundCloud and Dance still have a little in common,
SoundCloud is a music streaming service that lets people upload, promote, and share trucks. It had a bumpy ride over the past couple of years.
This open audio platform was founded in 2007 and became one of the most popular start-ups. However, due to stiff competition with other streaming platforms, SoundCloud faced a brink of extinction in 2017. However, it managed to raise $170 million from investors, which helped it stay afloat.
Now, why should you choose e-bikes over regular bikes?
There are a couple of reasons why e-bikes are like regular bicycles, and below are some of them:
Truth be told, your knees, hips, legs, and even heart don’t function the way they do when you are still young. Aging has the capacity to make you feel beaten even when you are only doing something easy. Thus, exercising feels like an inescapable curse. For this reason, riding and pedaling a regular bike becomes a difficult thing to do.
But, electronic bikes can help you ride a bike without having to pedal to your destination. It will ease your pain in exercising. Apart from that, you get to have a healthy, environmentally friendly, and hassle-free alternative to public transportation.
The problem lies with the statement, “the point of riding a bicycle is to get exercise.” But the thing is, the motor in an e-bike is just there to assist the cyclist. However, it does not mean they need to use it always. Still, the pedal is there, so you could use the e-bike manually if you want to.
In addition, this kind of vehicle is suitable for those who are not fit. Instead of taking a big leap, start small. Start with the motor, and in no time, you could already use the pedal. Treat the motor as your assistant to cope faster, not to pamper you to skip exercising. This offers you a choice of whether to pedal using your own feet or let the motor do the job.
Destressing and relaxing have gone easy because bikes of any kind exist. Biking promotes a healthier body, more free time to exercise, as well as more enjoyment. Not to mention that it also has the benefits of reducing traffic flow and tp the environment.
Moreover, relying on e-bikes doesn’t mean living an unhealthy life. This only makes everything far more possible for people to ride and ride farther. Days, when you doubt your own strength and endurance to complete a ride were all gone. It takes confidence and determination to start a new endeavor. Now, get out of the road and have fun. To think that electronic bikes will replace the regular bicycle or automobile is absurd. This is a wake-up call for people who stopped or never wanted to start cycling because of factors such as their health or the distance that they need to pedal. If these thoughts were the only barrier that has kept you off a bike, then purchasing an electronic bike is not a bad idea at all.
Through electronic bicycles, you can get back to the ride. Joining the growing community of Soundcloud will allow you to start saving €59 ($68) a month to own a “Dance” e-bike finally. If you are still hesitant, you can browse and read owner reviews and learn how this kind of bike will help you for the years to come.
SoundCloud, the music streaming pioneer, is one of the largest open audio platforms in the world. Described as the “YouTube of Audio,” the profusion of its user-generated content has significant, strategic investment news nowadays.
Moreover, this music streaming platform was able to raise $75 million in funding from SiriusXM, a satellite radio giant. Notably, SiriusXM is the owner of Pandora, a streaming giant that has an ad partnership with SoundCloud.
According to the companies, the amount raised will be used for launching new services and developing products.
In addition, PitchBook said that in 2017, SoundCloud was last valued at $500 million. SiriusXM noted that the deal is a minority investment. It is also related to the ad partnership where Pandora resellers the inventory of SoundCloud on its programmatic platform. When combined, the two serve a total of 100 million unique listeners around the US. Additionally, SoundCloud reached a forward revenue run-rate of $200 million. This happened for the very first time in the fourth quarter last year.
SoundCloud’s deal with SiriusXM is a positive development for it. It could also represent the business’s reversal of fortune.
SoundCloud was originally founded in Berlin in the year 2007. It was one of the early platforms for music streaming startups and has seen the rise of Spotify.
Moreover, SoundCloud has already seen many significant ups and downs ever since its inception. The company had an acquisition target for Twitter and later Spotify. However, the company did not pursue those talks into deals. The reason is partly the asking price as well as the overhang of issues in licensing and related business models.
This open audio platform had a surge of viral popularity. In addition, it has a long roster of creatives who use the platform to do new things and showcase their songs to the world. Yet, the early SoundCloud was never able to surmount the larger monetization and licensing issues despite being able to raise a $404 million funding.
Furthermore, SoundCloud reached a point when it came close to running out of money. For this reason, it laid off people and restructured its system. One of its founders, Alex Ljung, even stepped down as CEO while the company was raising emergency funding. On the other hand, Eric Wahlforss, one of the company’s co-founders, left SoundCloud last year. As a result, SoundCloud became a much quieter business in the past years.
But despite the company laying low, it still continued to grow. In fact, its deal with SiriusXM is evidence that SoundCloud is not yet done for.
According to the current CEO of SoundCloud, Kerry Trainor, the three consecutive years of SoundCloud’s strong financial performance is a direct reflection of its creator-led growth strategy’s success. He added that the company has an exciting roadmap that focuses on deepening creator-listener connections. This connection fuels creator discovery, the evolution of music culture, and career growth on SoundCloud.
Moreover, Trainor said that the company built a strong relationship with SiriusXM through the Pandora ad sales agreement. SiriusXM’s investment also gives SoundCloud added flexibility in the capital that will accelerate its vision. It will also help SoundCloud take advantage of opportunities in strategies as they arise.
One could wonder if this funding could lead to the acquisition of SoundCloud by SiriusXM. The music streaming indeed provides a complement to Pandora. Apart from that, it also fills a gap for both international audiences and original content. Notably, SoundCloud has more than 200 million tracks that came from 25 million creators. In addition, its listeners came from 190 countries. Some of the popular artists who debuted original music on SoundCloud include Post Malone, Billie Eilish, Khalid, Bad Bunny, and Lil Tecca.
In a statement, SiriusXM’s Chief Executive Officer Jim Meyer said that the unique platform of SoundCloud plays a significant role in the music ecosystem of today. Through this platform, new artists are discovered. In addition, they are able to build their fanbase. SoundCloud has also helped artists to connect directly with their fans in highly effective methods.
In addition, Meyer said that SiriusXM admires the loyal and growing audience of SoundCloud. The company also admires the things that SoundCloud offers its creators, reputation, and popularity in global music communities. SiriusXM believes that partnering with SoundCloud is an opportunity to continue making value for the stockholders of SiriusXM by expanding digital audio platforms.
Furthermore, SoundCloud is the music culture’s global accelerator. It has grown its business by introducing new products, partnerships, and services that gave audio creators empowerment and listener discovery. This platform remains the first place where listeners discover new trends in music.
SoundCloud is considered the largest open audio platform in the world. It is powered by a connected community of listeners, creators, as well as curators. All of them are on the pulse of what is new, now, and next in the music culture.
SoundCloud was founded in 2007. Until now, it provides the world’s audio creators with top-of-the-line tools, services, and resources to build and develop their careers.
On the other hand, SiriusXM Holdings Inc. is the US’ leading audio entertainment company. It is also the premier programmer and platform for subscription as well as digital advertising. Together with its subsidiary Pandora, SiriusXM reaches more than 100 million individuals every month using their audio products. It also offers satellite radio as well as audio entertainment in Canada through Sirius XM Canada Holdings Inc.
Under the terms of the agreement, SiriusXM bought securities for a minority investment which cost $75 million. In addition, the SoundCloud Board of Directors will expand so it could include two individuals designated by SiriusXM.
SoundCloud’s financial advisor is the Rain Group. On the other hand, its legal counsel is Morrison & Foerster. Meanwhile, Allen & Company LLC is the financial advisor to SiriusXM. On the other hand, Weil, Gotshal & Manges LLP is its legal counsel.
Date: October 15, 2021 / Categories: New Stuff, / Author: Joy P
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