There’s been something interesting brewing in the connected hi-fi market for some time now, as companies like Sonos strike deals with streaming music services and make their systems more affordable and accessible to people who aren’t geeks and/or audiophiles. It’s an expensive business, though, which explains Sonos’ decision to raise $135m in new financing.
$45m of that is ‘primary’ funding, which will be used to continue growing the business. The other $90m is ‘secondary’ financing, used to cash out existing investors and shareholders. The primary element includes investment from VC firms KKR, Elevation Partners and Redpoint Ventures, with the first two of those joining Sonos’ board.
The funding will be crucial if Sonos is to continue its growth into a mainstream consumer brand, through product development and marketing. As connectivity and streaming partnerships start to become standard features across the hi-fi market, Sonos needs to continue innovating to stay ahead. Its funding is also good news for the ambitions of Spotify, Deezer, Rhapsody and others to continue their march into the living room.