SoundCloud is apparently running low on funds, and could be out of money by the end of this year.
A report from Digital Music News quotes three individuals who are apparently close to the organisation, and say that the company will require an emergency bridge from an existing investor or a bank within the next 4-5 months in order to stay afloat. This news comes not long after the company had announced that it would be launching a subscription service.
SoundCloud is currently valued at $700 million but is yet to make a profit. They recently signed a agreement with WMG which saw the label take a 5% stake in the service, but Universal and Sony haven’t signed the same deal. As a result of this, investors are supposedly reluctant to continue to support the streaming service.
