SoundCloud raises €2.5 million

For the audio aficionados, SoundCloud offers a platform to upload and share music before release

For those who are constantly sending and sharing music tracks with their colleagues, such as producers and musicians, SoundCloud has created a music hosting platform which elimates the hassle of file transferring.

The Berlin based company, has announced its raised €2.5 million in its first round of funding today, led by Doughty Hanson Technology Ventures.  Back in 2007, SoundCloud raised seed financing from several investors including the company that creates the popular music producing/remix tool, Ableton Live.  

SoundCloud’s platform offers a pretty clean and easy interface for music professionals to privately exchange their tracks before public release.  The platform allows for uploading and playing of industry standard audio file formats including .wav, .aiff, .mp3 and others.  

Beyond its private file exchanging interface, SoundCloud also allows users a public profile where they can share and discover other users.  One unique feature of this, is the ability for users to comment on each others tracks.  But instead of the traditional comment box, users can actually comment within the displayed waveform which represents the track, sort of like a timeline.  As a section of the music comes into play, boxes show up with whoever left the feedback and what they wrote in it, see below.

As users get accustomed to the platform, they quickly find the limitations of SoundCloud’s free account which limits them to only five uploads per month.  Pro accounts start at €9/month for 15 uploads and go all the way up to €59/month for unlimited uploads.  Also with pro accounts, SoundCloud offers statistics and analytics based on who is listening to their music and where its being played. 

Since its inception in 2007, SoundCloud has already attracted 100,000 registered users.  Doughty Hanson Technology Ventures believes that, “Soundcloud has the potential to revolutionize the production and distribution process for digital music and this funding will enable the company to build on its success to date.”