SoundCloud is fucked. On Thursday, the streaming music service mostly known as a place to hear podcasts and remixes from unknown DJs confirmed that it had taken $70 million in debt funding—basically a loan from various investors—in order to stay in business. It’s never a good sign when venture-backed companies have to raise money from debt financing groups, because it indicates that traditional investors don’t have much hope for the company. This appears to be the case for SoundCloud, as TechCrunch reports that the debt funding was raised because the company couldn’t close a $100 million round of funding. Back in February, when SoundCloud released its 2015 financial information, we found out that the company had lost $55 million for the year and was at the risk of running out of cash. Advertisement Yet, while having an extra $70 million is certainly helpful, it’s probably not going to be enough to save SoundCloud from the fate of Rdio, Grooveshark, MOG, and other failed music streaming services. In fact, looking at the landscape, streaming services in general are kind of fucked. The payment model for streaming music services makes it very difficult for companies to actually make money. In addition to… Read full this story
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