VCs may be playing it ultra-conservative, though funding rounds still exist for music-related startups.
Earlier this week, ad-supported radio play Goom announced a $16 million round, a seemingly-impossible feat.
But Goom is not alone. On Wednesday, Berlin-based SoundCloud announced a 2.5 million euro ($3.3 million) series A, fueled by Doughty Hanson Technology Ventures. SoundCloud,officially launched in October of 2008, is a collaborative environment for musicians. The company allows professionals to combine music elements from anywhere, a concept that replaces the traditional studio experience – or, more cumbersome collaboration tools like shared storage accounts or email.
At present, the company boasts 100,000 registered users. The company was first conceived in 2007, and fueled by angel investors. The Doughty round is the first institutional injection.