British streaming music startup Psonar has been plugging away with its idea for a pay-as-you-go model for years now, inking a licensing deal with UMG while “in progress” with talks for similar agreements with WMG and Sony.
How to fund those deals? Psonar has raised more than £1m of funding so far, and is looking to raise another £1m, including £305k already secured from private investors. Today, it’s opening up with a crowdfunding campaign to raise at least another £250k from individuals.
The money will be used to continue developing Psonar’s service, which is available in beta in the UK and Ireland. The company says its ambitions are global, including emerging markets.
“The investment that we are raising on Crowdcube will position the service for international expansion, which includes launching the service in other European territories and the USA at the end of this year,” said CEO Martin Rigby. “Our target territories for further expansion starting in late 2015 include sub-Saharan Africa, south-east Asia and Latin America”.
That will need more than £1m – Psonar says it’s planning to raise a Series A round of around £3.3m in early 2016 “based on the roll-out of mobile operator partnerships currently in the pipeline – two in the UK and one in SE Asia”.