Music Sharing Service SoundCloud Raises $10 Million From Index, Union Square. Music start-ups have been a money incinerator for a long time, but that doesn’t stop investors from trying again.
Here’s the latest example, which I first wrote about back in October: SoundCloud, a German-based file-sharing service, has raised $10 million in a funding round led by Index Ventures and Union Square Ventures. While lots of music services are still trying to figure out how to make money by distributing copyrighted music you’ve heard of, SoundCloud is taking a different tack. As I wrote last fall: It’s designed to let professional and amateur musicians share their own music with each other and the public, via cloud-based files that the company hosts.Once the tunes are on SoundCloud’s servers, the service makes it easy to move the stuff around the Web, via its own widget and an API that’s showing up on lots of interesting sites, apps, services and devices, including Facebook and Apple’s iPad.
SoundCloud Raises $10 Million In Venture Funding To Scale Faster & Expand In U.S. SoundCloud Moves Music Fast.