Is SoundCloud raising funding again via Index and Union Square?

SoundCloud is courting more investment in the form of offers from Index Ventures and Union Square Ventures, if German startup blog Gruenderszene is to be believed. We’ve reached out to the company for comment. It’s in fact quite likely that SoundCloud is looking to raise another round since its last was in April 2009, from Doughty Hanson Ventures for EUR 2.5 million. Since then it has scaled in adoption and taken on bigger offices and more staff.

The Berlin-based audio-streaming service for sharing music – not unlike a YouTube or Flickr for audio – recently passed two million users.

The startup, which has a freemium model where a Pro account costs €29.00 per year, has already attracted attention from Union Square’s Fred Wilson on his blog. It recently launched a round of new iPhone and Android apps allowing users to record directly onto the site.