SoundCloud Raises €2.5 Million For Professional Music Collaboration Hub

SoundCloud, an audio sharing site geared towards music professionals, has closed a €2.5 million (around $3.3 million) funding round led by Doughty Hanson Technology Ventures. As part of the deal, Stefan Tirtey of Doughty Hanson will join the company’s board of directors.

We last covered SoundCloud in October, when the site launched in a private beta. Since then it has opened to the public, and now claims 100,000 registered members. The site’s primary function is to help musicians, producers, and other professionals in the music industry share and collaborate around music tracks. These tracks tend to be quite large in size, which makes them difficult to transfer (typically musicians would be forced to resort to FTP or services like YouSendIt, which are hardly ideal for frequent music swapping).

SoundCloud solves this issue, allowing members to swap files without having to download them to listen (you can stream them straight from the SoundCloud servers). Musicians can also optionally allow their peers to download their tracks, and can use the site’s analytics to see who has listened to them. The site also offers an embeddable music player that musicians can distribute across the web (example below) which allows users to leave a comment directly on a portion of a song (for example, I could append a comment in the song’s timeline stating that I liked a certain guitar solo).