We’ve done more digging on the Spotify cap table story from yesterday, and have confirmed with one source that the company did close on at least part of the new round of financing the Financial Times reported they were negotiating earlier this week.
Wellington Partners invested in the company some time prior to July 10, taking a 3.8% stake for €6.5 million, confirms our source. That implies a valuation of €170 million, or about $242 million based on today’s exchange rates. The previously reported valuation was $250 million.
So what’s new? The fact that the valuation has been locked down and the round partially closed. As of a few days ago Li Ka-Shing had supposedly not yet officially joined the round and wasn’t happy with the valuation, but was presumed to be willing to accept the independent Wellington valuation. When the round is complete, Spotify will have a post money valuation of around €200 million, says our source.
That means the company has roughly doubled in valuation from a year ago, when investors bought stock at a €100 million post money valuation. And the service hasn’t yet left beta.