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  • Portfolio News
  • 13 June 2012
  • 5 min read
  • Words: Northzone

VentureBeat: Even Spotify apps are getting funded

Originally published on Venturebeat

Soundrop, a social app for streaming service Spotify’s music platform, has raised $3 million in its first round of funding, the company announced today.

Soundrop was among the first batch of apps that launched with Spotify’s new open-platform, which invites other developers to create apps that work with the streaming music service’s core functionality. The app allows users to set up virtual listening rooms based on a specific music type, which is similar to what Turntable.fm is doing. It has about 7,000 rooms that have played over 60 million songs, according to the company. Some music labels have started partnering with Soundrop to create artist-specific music rooms to help promote a new album or concert tour.

The funding is significant because it shows (on some level) that investors have faith in Spotify’s app platform. At the same time, the new funding round did come from one of Spotify’s original investors, Northzone. Soundrop plans to use the new capital to hire more employees, set up a new offices in Europe, and increase its mobile profile.

Founded in January 2012, the Oslo, Norway-based startup was previously bootstrapped prior to its recent funding round. As part of the investment deal, Northzone’s Torleif Ahlsand will become chairman of Soundrop’s board of directors.