The company could be out of money by the end of the year.
SoundCloud has almost exhausted its available financing and faces “significant obstacles” finalising its next round, sources claim.
A report at Digital Music News cites three individuals “close to the organisation,” who say that the company will require an emergency bridge from an existing investor or a bank within the next 4-5 months.
SoundCloud last year struck a deal with WMG in which the major got a five per cent stake in the company, but deals have yet to be agreed with UMG and Sony – something that is reportedly putting off potential investors. “Investors want to see what happens [with the majors] before they put more money into it,” one of the sources said.
The news follows confirmation from SoundCloud that it will be launching a subscription service, though it’s unclear exactly when it will launch or what it will entail.