Doughty Hanson supports Swedish Berlin tech business

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Doughty Hanson Technology Ventures has provided EUR2.5m for music sharing platform SoundCloud Ltd in a first institutional round of equity financing.

SoundCloud Ltd is an internet audio platform that enables music professionals to privately send, receive and distribute music. Founded in 2007, the company launched its service in October 2008 and since then has attracted more than 100,000 registered users. The company was originally bootstrapped and raised seed financing from business angels including music producer Chris Zippel, internet entrepreneurs Christophe Maire, Peter Schupbach, Tariq Krim and Felix Petersen, and the founders of music production software company Ableton AG.

With the new funds from Doughty Hanson, SoundCloud will expand the team, move into new offices, make operational improvements, and develop its product offering. The business is already revenue-generating through its additional paid-for features such as detailed usage statistics and customisable applications. The "freemium" model, attracts customers by offering the base service for free.