Social Music Service Rdio Secures $17.5 Million in Financing Round
Investment to Support the Aggressive Expansion of the Rdio Platform in 2011
Warner Bros. Records Chairman Rob Cavallo Joins Board
SAN FRANCISCO, Feb. 3, 2011 /PRNewswire/ -- Rdio, the unlimited, on-demand social music service from the founders of Skype, today announced they have raised a new financing round in the amount of $17.5 million from new and existing investors. The latest round adds Mangrove Capital Partners to an impressive roster of investors that includes Rdio co-founder, Janus Friis, through his investment entities, as well as Atomico and Skype.
Rdio will use this infusion of funds to aggressively expand its footprint to new platforms and new regions in 2011. Part of the funds will also go towards hiring new talent, expanding outreach efforts to consumers, and continuing to innovate on new ways to bring the social music experience to music lovers. Additionally, Warner Bros. Records Chairman, Rob Cavallo, a Grammy-nominated producer known for his work with several artists like Green Day, Dave Matthews Band and Alanis Morissette, has joined the Rdio board to help further strengthen Rdio's relationship with the music industry. Existing board members include CEO of Europlay Capital Advisors, Mark Dyne, co-founders Janus Friis and Niklas Zennstrom of Atomico, and CEO Drew Larner.
"We are changing the way we find and listen to music. Anything and everything is instantly available from any computer and phone and easily shared with our friends. The days of expensive music downloads are coming to an end," said Janus Friis, Rdio co-founder.
"Unlimited and on-demand digital music services are an exciting and explosive new market as the a la carte download model is ripe for innovation," said Mark Tluszcz, co-founder and managing partner of Mangrove Capital Partners. "With its globally experienced co-founders, deep ties to record labels and the music industry, and unique social design, Rdio has the right combination of management experience and technology to make the company a global leader."
"The convergence of many factors, including the pervasiveness of smartphones, network robustness, and consumers accustomed to on-demand content make it an exciting time to lead a company like Rdio," said Drew Larner, Rdio CEO. "It says a lot that notable investors share our vision."
Rdio is an unlimited, on-demand social music service that lets subscribers listen to music on the web and mobile devices, anytime and anywhere. Rdio's key differentiator is its unique social design that emulates the way music has always been shared—from person to person. Rdio subscribers build and share their online music collections from a catalogue of over 8 million songs, and can see the listening activity, collections and playlists of those they follow. Subscribers can also see what's in heavy rotation in their network and the Rdio community, top charts and newly released albums. Rdio has relationships with all four major labels (EMI Music, Sony Music Entertainment, Universal Music Group and Warner Music Group) and thousands of indie labels.
Rdio is an unlimited, on-demand social music service that brings music alive by letting subscribers listen to as many songs as they want, anytime, anywhere, and discover and share new music with friends. Rdio was founded by Janus Friis, one of the founders of Skype and is funded by Atomico, Janus Friis through his investment entities, Mangrove Capital Partners and Skype. For more information please visit www.rdio.com.
Atomico is a leading international venture capital firm formed in 2006 by Niklas Zennstrom, a successful serial-entrepreneur and co-founder of Skype, Kazaa, Rdio and other companies. Atomico seeks to deliver outsized returns to investors by being the partner, and investor of choice, for fast-growing technology companies that will become global category winners. Atomico has to date invested in more than 40 companies on three continents, and in March 2010 launched its second fund, the $165m institutional fund Atomico Ventures II. Atomico is headquartered in London with offices in Sao Paulo and Hong Kong. For more information visit our website: www.atomico.com
About Mangrove Capital Partners
Mangrove Capital Partners is committed to help turn entrepreneurial visions into realities as a means of driving capital appreciation for investors. Other Mangrove Capital Partners investments include Skype, Brands4Friends, Wix, KupiVIP, Bettymovil, Spreets and WooMe.
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