After a report on TechCrunch based on leaks from an internal meeting raised new doubts about SoundCloud’s financial sustainability, the streaming service has responded.
But its statement pretty much confirms the claim in the original piece that the company’s current funding does not stretch beyond the final quarter of this year.
“To clarify, SoundCloud is fully funded into the fourth quarter. We continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability,” a spokesperson told Hypebot, while also criticising (but not actually rebutting) “the extensive number of inaccuracies” in the TechCrunch report.
SoundCloud’s CEO Alexander Ljung did confirm in his Tech Open Air conference appearance on Wednesday that SoundCloud is seeking a new round of funding, but the challenge will be securing terms that give the company a decent shot at survival well into 2018 and beyond.