Following reports earlier this week that the popular music-streaming service had recently completed a high-profile but nonetheless diminished fundraising effort, the New York Times reported Wednesday that Spotify has completed a new round of financing for an additional $100 million.
The latest round of investments values Spotify at $3 billion, and brings the total amount of money the startup has managed to raise to $288 million since it was first founded in 2006 in Stockholm, Sweden.
The New York Times noted that the new round of fundraising includes several notable investors. The Coca-Cola company (NYSE: KO) contributed $10 million dollars, while Fidelity Investments reportedly brought an estimated $15 million.
Goldman Sachs’ contributed about half of the new investment, while the remaining $25 million come from previous investors.
In previous fundraising efforts, Spotify has managed to attract the support of other prominent financial businesses including the prominent venture capital firms Kleiner Perkins Caufield & Byers and Accel Partners. But recently Spotify has struggled to maintain its valuation expectations as several newly-minted and already struggling internet companies such as Zynga (Nasdaq: ZNGA) and Facebook (Nasdaq: FB) have shaken investor confidence. Just six months ago, The New York Times' Dealbook section reported that Spotify was aiming for an additional $200 million in capital for a $4 billion valuation.
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Coke, meanwhile, has been a much-rumored contender for investment in Spotify. The iconic soda drink company first partnered with Spotify last April, a deal that included integrating the Spotify music app into Coke’s various music websites and the brand’s Facebook page. It also sponsored a music hackathon in New York City earlier this year to help promote the Spotify brand.
Endorsements or no, Spotify still faces mounting competition from entrenched digital media and music services like Apple’s (Nasdaq: AAPL) iTunes and Microsoft’s (Nasdaq: MSFT) new Xbox Music, both of which realized the potential threat of streaming content to their previous services that operated primarily around digitial purchases and downloads.
Spotify, Coca-Cola, Fidelity Investments, Goldman Sachs, music streaming, venture capital