According to new reports, music streaming service Spotify is worth up to $1 Billion. That’s as a result of a recent round of fundraising by venture capitalists DST, who have in the past successfully raised capital for the likes of Facebook, Groupon and Zynga. DST raised around $100 million from investors, which on a book to market ratio would value the company, which only operates in Europe, at $1 billion US dollars.
This valuation is dependent on many factors, as the investors are assuming that Spotify will make its long awaited launch in the USA, as well as inking deals with the major record labels for access to their complete back catalogues. While rumours are flying around of a deal being struck between Spotify and Apple to offer streaming services through Spotify on Apple devices, one of the more valuable deals apparently set in train is a rumoured deal with Facebook which would potentially see a Spotify streaming service on the world’s most popular social networking site.
A lot of investor money would have been ploughed in based on at least one of these deals coming off, but respected technology website Techcrunch points out that DST is highly regarded for its savvy venture capital raising and investments and is not known for mistakes or failing to thoroughly analyse the books of companies before shovelling money in.
Besides, they point out that the company was behind capital raising for Facebook, and Zynga; both of which now look like very wise investments.
