With this investment comes a new CEO, former Vimeo head Kerry Trainor, he replaces co-founder Alexander Ljung, who steps into a new role, as chairman of the company. Details are unclear at this stage, but during Trainor's tenure as CEO of Vimeo - a video streaming site popular with budding and established filmmakers - he employed monetization strategies that significantly raised the amount of video-sharing users and paying subscribers.
As rumors suggested earlier this month, SoundCloud has officially confirmed that it has secured investments from The Raine Group and Temasek. This financing means SoundCloud remains strong, independent and here to stay.
Should the investment deal, referred to as Project Sonic, close tomorrow, The Raine Group, Temasek, and all other existing investors would receive Series F stock, a special class of common stock that has seniority and preference, while existing Series E investors would have their liquidity preference cut by over 40 percent.
Ljung wrote in a blog post, "You've told me how, without SoundCloud, there would be a giant gaping void in today's world of music".
Digital music service SoundCloud will continue to operate following a new investment round. No, absolutely not. After a decade of balancing the roles of Founder, CEO and Chairman I'm excited to hand the CEO reins over to Kerry to allow me to fully focus on the role of the Chairman and the long-term.
SoundCloud's current subscription services mainly provide analytics insight at US$7 for the Pro Service and US$15 for Unlimited, and it's likely Trainor will be looking into these tiers to provide more robust tool kits for musicians.
"As a huge fan of the SoundCloud platform since its founding, I deeply admire what Alex and Eric have built", said Trainor.