One of the world’s hottest technology companies is selling a stake to a renowned Silicon Valley investor. Spotify and Kleiner Perkins have inked a deal valuing the online music streaming service at more than $1 bn, according to a report on Sky News.
Kleiner Perkins Caufield & Byers is no stranger to start-up investments. The firm had a financial hand in Amazon and Google during their start-up phases, and now is paying $50 mn for a shareholding of just under 5 per cent in Spotify.
The Sky News report says Kleiner Perkins is investing alongside Digital Sky Technologies Global, the high-profile Russian investor with funds in Facebook and Groupon.
So, what will Spotify do with its new funds? rumour is that the company plans to put the money to use facilitating its geographical growth and the development of new services for users.