Music Industry News Network [03-08-2017]
Soundtrack Your Brand Closes $22 Million Investment To Continue Battle Against Bad Background Music
Soundtrack Your Brand has raised a $22 million investment led by Nordic venture capital fund Industrifonden alongside U.K.'s Balderton Capital, letting it ramp up global expansion and perfect the first truly modern streaming service for businesses.
The financing round also saw participation from previous investors, including Telia Company, Northzone, Creandum, H&M's family vehicle HMP and industry veteran Jörg Mohaupt.
Industrifonden investment manager and music entrepreneur Johan Englund will join Soundtrack Your Brand's board of of directors, along with Balderton Capital general partner Lars Fjeldsoe-Nielsen, previously head of mobile at both Uber and Dropbox.
"I've witnessed disruption first hand. Dropbox made storage cool, and achieved a shift from a consumer to a business proposition. Uber changed the way we think of transportation. Soundtrack Your Brand will do the same thing to background music" said Balderton's Lars Fjeldsoe-Nielsen.
While the larger music industry has been busy saving itself from piracy, the market for background music has been overlooked and left behind. The result is a dysfunctional, outdated, fragmented and underserved industry, where businesses still play music using CDs, USB-sticks and satellite feeds. Incumbents rarely report what they play to rights-holders, robbing artists from fair and accurate compensation.
"Background music today is sold as a utility, and there's rarely much thought going into what music brands are playing and why," said Andreas Liffgarden, Soundtrack Your Brand's executive chairman and co-founder. "Today's background music sucks for brands and consumers alike, and it's hurting the music industry at large. As lovers of music and technology, we're completely overhauling this industry, to once and for all kill bad background music." Ola Sars, former COO and co-founder of Beats Music, co-founded Soundtrack Your Brand in 2013 with Andreas Li ff garden, former global head of business development at Spotify. The company provides the background music industry's first modern music streaming platform and a scientifically proven music curation model. For immediate release Stockholm, Sweden Unlike consumer streaming services, it's licensed to use in public and commercial environments and combines data analysis with hands-on expertise to deliver content that fits individual brands, boosts sales and makes staff happier.
"Soundtrack Your Brand has a massive opportunity to fully digitalise the background music industry. Leading that shift creates endless possibilities in terms of both insight and reach," said Björn Bergström, Investment Manager and lead for Industrifonden's investment.
In 2016, Soundtrack Your Brand expanded from the Nordics into over 100 countries worldwide. Since the beginning of last year, it has seen revenue and user base grow nearly 400%, with continued trajectory into 2017, making it the fastest-growing company in the global background music market. Key customers include the likes of McDonald's, TAG Heuer and Toni & Guy, in addition to thousands of small and medium-sized businesses.
"While our competitors are focused on shipping CDs by mail to large chains in U.S. and Europe, we are growing the size of this market by digital means," said Ola Sars, Soundtrack Your Brand's CEO and co-founder. "We distribute our platform more efficiently and are continually improving the product experience. By selling online we reach the entire market, all the way down to mom-and- pop's that nobody sold to before. And we do it on a global scale."
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