19 Nov Spotify Revenue Falls Short of Original Valuation
Business Matters: A $3 Billion Valuation Brings Spotify Expectations Back to Earth
By Glenn Peoples
November 12, 2012
News that Spotify raised money at a $3 billion valuation and generated $200 million in revenue in the first half of 2012 is more like the sound of air being let out of a tire rather than a bursting bubble. The company has been hyped more than any other in the subscription-music space — deservedly so — and expectations needed to brought back to reality.
Spotify recently raised $100 million at a $3 billion valuation, or $1 billion less than the valuation it was aiming for when raising funds in recent months, according to reports. As Billboard.biz reported Sunday, the company raised the funding from several investors, including Goldman Sachs.