Thursday 28 July 2011
Spotify, the online jukebox, is raising $100m (£61.7m) of fresh investment that would value the two-year-old company at $1bn.
It is believed Spotify is planning to use the fresh financing to help it crack the north American market
By Rupert Neate
Posted: 21 Feb 2011
Yuri Milner, the Russian technology investor who has already bought stakes in Facebook, Groupon and Zynga, is reportedly leading the $100m financing via his Digital Sky Technologies (DST) investment fund.
Michael Arrington first reported the talks on his technology blog TechCrunch. DST and Spotify refused to comment. DST has invested more than $1bn buying stakes in well established internet companies, with a particular interest in the “social internet space”.
The company initially bought a $200m stake in Facebook in 2009, and is believed to have subsequently increased its stake to almost 10pc. DST was also an investor in a $180m fund-raising for Zynga, the maker of popular Facebook games such as FarmVille.
In an interview with The Telegraph last year, Mr Milner said: “There are a few dozen companies globally we are following. When you do late-stage investment focused on the internet your universe shrinks dramatically.”
DST, which has built up a war chest of more than $1bn to fund the second stage of its investment strategy, counts Alisher Usmanov, the oligarch with a major shareholding in Arsenal Football Club, among its investors. Goldman Sachs, fund manager Tiger Global and Tencent, China’s biggest internet company, are also investors.