Topic:

fundraising

fundraising

Spot Off or Spot On? Spotify Said to Miss Valuation Goal, but Still Plenty Pricey

spotify

When Spotify landed in the competitive U.S. digital music marketplace last summer, it was boosted by a cresting wave of good publicity, strong track record in Europe and a $100 million investment funding round that valued the company at $1 billion.

That wasn’t all: Given the strong demand for Pandora and LinkedIn IPOs (and even stronger anticipation for the eventual Facebook offering), Spotify CEO Daniel Ek’s timing for a U.S. launch seemed spot on.

Well, things have changed: Share prices for high profile tech IPOs such as Facebook, Zynga and Groupon have tanked, and as Spotify readies to close its latest round of fund-raising, the company looks likely to fall short of its goal. Instead of the $4 billion valuation that Spotify initially sought, the company will likely settle for something “slightly more than $3 billion,” according to The Wall Street Journal. Read More