SoundCloud Makes It Rain

A recent report on Digital Music News shows that over $450 million in cash was spent investing in music startups in 2011. Spotify claimed a massive piece of the action with a mind-boggling $100 million infusion, and social sound platform SoundCloud nabbed a healthy $10 million.

Yesterday, SoundCloud edged closer to Spotify territory by raising an undisclosed amount of funding rumored to be valued at $50 million. The round was led by Kleiner Perkins Caufield & Byers, and Kleiner partner Mary Meeker will become a board observer for the SoundCloud.

“SoundCloud has seen exponential growth this year in terms of users and greatly evolved our product offerings,” said founder & CEO, Alexander Ljung in a press release on the company’s website. “With Kleiner Perkins’ impeccable track record for recognizing and investing in companies with a long-term view, and their understanding and support for the potential of sound, we couldn’t be more excited about working together.”

Launched in 2008 by Ljung and Eric Wahlforss, SoundCloud enables its user base of 9 million to create, record, and share works through the web as well as receive feedback from community members. Sounds and works can be accessed virtually anywhere using the iPhone or Android apps. Just before the end of 2011, Hypebot listed some of the best and most creative SoundCloud campaigns to show how artists are using the site to engage with their fans.