Friday, September 6, 2013

Spotify worth more than 5 million USD

Spotify, the Swedish music streaming service has made massive success and today its market value has exploded and the company is now worth more than 5 million USD.

Best spotify logo music
Since the last time Spotify attracted funding, the value of the company has increased by 2.3 billion USD, and this is only over the course of less than a year. Today, Spotify's market value has breached 5 million USD and nothing is signalling that this rate of increase will slow down anytime soon.

Spotify is a music streaming service that originates from Sweden. The service was relatively recently launched on the American market and has primarily focused on the European market. The success and market penetration of Spotify has been overwhelming and presently Spotify has approximately 6 million paid subscribers.

However, despite the large number of subscribers, Spotify is still in an expansion phase and therefore currently is not generating any revenue. Instead, Spotify apparently will soon need more funding to continue its rapid expansion. Considering that Cocacola and Fidelity have chosen to invest in the company and that its market value is increasing this rapidly, Spotify should not have any difficulties in attracting investors. Although the founders of Spotify, Daniel Ek and Martin Lorentzon, have claimed that they would rather not decrease their ownership shares more and is instead looking for means to borrow the necessary money to continue the expansion.

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