Australian digital music firm Guvera has startled the industry by announcing an AU$100m ($72.2m) funding round, while talking up its plans for an IPO.
Yet the company’s latest financial results reveal that it lost AU$81.1m (US$58.6m) in its last financial year, which ended on 30 June 2015, following a AU$29.4m loss in the previous year.
The new funding round doesn’t come from the usual corps of venture capital firms, but rather from private investors in Guvera’s home country.
“A number of wealthy Australian families have been looking for new opportunities in the tech and digital space… but more specifically in mobile and digital. Guvera presents an opportunity in this space, and it’s growing quickly in Asia,” CEO Darren Herft told the Australian Financial Review.