Photo Credit: Nick Hillier
Soundtrack Your Brand, the self-described “leading global music streaming service for businesses,” has announced a $15 million “pre-growth round” led by Matt Pincus’ Music.
Stockholm-based Soundtrack Your Brand, which Spotify co-founded with former Beats by Dre exec Ola Sars a decade ago, revealed the multimillion-dollar raise this morning. Touted by higher-ups as the “world’s fastest-growing B2B music streaming service,” Soundtrack Your Brand’s said to offer commercial establishments access to around 100 million fully licensed tracks.
In addition to the lead investment from Music, Soundtrack Your Brand identified Dundee Partners as well as “all major existing Soundtrack investors” as participants in the pre-growth round. Among the latter backers are London’s Balderton Capital (a Kobalt investor), Miami’s Fuel Venture Capital (a Unitea stakeholder), and Sweden’s Industrifonden, Telia, and DIG Investment.
Addressing his support for Soundtrack Your Brand, Matt Pincus touched upon the access to on-demand music that it affords business professionals. (One of the advertised features of the company’s “Soundtrack Unlimited” subscription tier is an option to make “Spotify playlists legal” for use in businesses by importing them directly into the Soundtrack Your Brand app.)
“It’s hard to believe but, before Soundtrack Your Brand, business owners had no legitimate option to play music on demand for their customers,” said Pincus, who announced a $200 million raise for Music in May of 2022. “Almost every business has some need for music – and most business owners believe that music creators should be paid for their work. It sounds obvious, but it took a mountain of technological and business innovation to bring on-demand music to enterprise and Soundtrack nailed it.”
Pincus has also joined the board of Soundtrack Your Brand, which is teeing up for 2024 “an additional growth round to fund the further consolidation of the global background music market.” Meanwhile, CEO Ola Sars spelled out that today’s capital will enable his company to “expand our growth model into M&A.”
“Our mission to bring transparency and accountability to the dysfunctional background music market is gaining momentum,” communicated Sars. “Our financial performance and operational efficiency are both already very strong, but with this investment Soundtrack Your Brand can expand our growth model into M&A, consolidating the fragmented background music market and ensuring continued premium ARPU and fair compensation to music creators.”
At present, Soundtrack Your Brand (which charges $54 monthly per business “zone” for the aforementioned Soundtrack Unlimited plan) is said to boast average revenue per user of $33. Moreover, after turning in 60 percent year-over-year revenue growth during 2022, Soundtrack in Q1 2023 achieved “EBITDA profitability,” according to higher-ups.