Spotify’s co-founders Daniel Ek and Martin Lorentzon will be watching Snapchat (Snap Inc)’s IPO attempt very closely right now.
Spotify is estimated to be valued at around $8bn today.
That’s both the result of impressive scale – after clocking up comfortably in excess of 100m active users since launching in 2008 – and total lifetime funding of over $2bn.
According to new estimates from Equidate and Bloomberg’s Billionaires Index – via Investopedia – the duo who created Spotify currently own more than $1.8bn in shares between them.
Martin Lorentzon reportedly has a $1 billion stake in the streaming service, while Daniel Ek owns an $825 million chunk.
Spotify is focused on executing an IPO next year, having secured a new funding round of $1bn in convertible debt in Q1 from the likes of TPG and Dragoneer.
Spotify had previously raised $1.06bn in seven rounds of investment to date from 26 investors – including the likes of Coca-Cola, Goldman Sachs and Hong Kong-based Li Ka-Shing.
Lorentzon stepped down as Chairman of Spotify in October, but remains on the company’s board.
As a result, Daniel Ek added to his CEO title by also becoming Chairman of the business.
Snapchat’s market listing could value the company between $20 billion and $25 billion if successful, according to Bloomberg – a 40% jump on its private market valuation.
SPOTIFY: INVESTMENT ROUNDS TO DATE
- March 2016: $1bn – TPG, Dragoneer and Goldman Sachs
- June 2015: $526m – Goldman Sachs, TCV, GSV Capital, Rinkelberg Capital, Teliasonera & more
- November 2013: $250m – Technology Crossover Ventures
- November 2012*: $100m – AFSquare, The Coca-Cola Company, Fidelity Ventures, Lakestar, Goldman Sachs
- June 2011: $100m – DST Global, Kleiner Perkins Caulfield & Byers, Accel Partners
- February 2010: $12.3m – Founders Fund, Sean Parker
- August 2009: $50m – Li Ka-shing, Horizons Ventures, Wellingtons Partners
- October 2008: $21.6m – Li Ka-shing, Creandum, Northzone, Horizons Ventures
* An additional funding round is believed to have taken place in 2012 for an undisclosed amount.Music Business Worldwide