SoundCloud faces do-or-die vote by investors

SoundCloud will soon collapse if investors don’t vote for a rescue funding round tomorrow. The stumbling music streaming community site had to suddenly lay off 40 percent of its staff last month. Now it’s asking investors for $169.5 million at a pre-money enterprise valuation of just $150 million, according to Axios‘ reliable business editor Dan Primack. That’s a steep drop from the $700 million valuation of its previous rounds.

If SoundCloud doesn’t get the funding, CEO Alexander Ljung reportedly told investors that SoundCloud won’t be able “to continue as a going concern.” That could force SoundCloud to sell even though Ljung has stubbornly fought to keep the dying startup independent. If it can’t find funding or a buyer, SoundCloud could vaporize, destroying…

Read Story