10 Comments

Summary:

Updated with comment from Pandora: Internet radio provider Pandora Media has raised $35 million in new funding, peHUB is reporting, just two days after the company celebrated the establishment of a royalty deal that ends years of negotiation with record labels and content owners. It’s not […]

pandoraUpdated with comment from Pandora: Internet radio provider Pandora Media has raised $35 million in new funding, peHUB is reporting, just two days after the company celebrated the establishment of a royalty deal that ends years of negotiation with record labels and content owners. It’s not clear whether there are new investors involved or whether the funding comes from existing backers. Stakeholders in Pandora include Crosslink Capital, WaldenVC, Selby Venture Partners and Labrador Ventures.

As I wrote Wednesday, the resolution of the royalty issue could lead broadly to more investment in the Internet radio sector, as the expenses involved in running a Net broadcasting company become known quantities. Curiously, though, the peHUB report suggests that Pandora’s new funding was in place before the new royalty deal was reached, although it stands to reason that the company could have moved forward with its fundraising as the royalty agreement appeared imminent. Pandora CTO Tom Conrad didn’t mention a new round of funding in our conversation, but he did agree that having royalty structures in place could likely provoke more investment in Pandora’s competitors.

Primarily a free music service supported by advertising, Pandora said this week it would charge its heaviest users 99 cents each month if they exceed a cap of 40 hours of streaming music. The company also offers a separate premium service without ads that costs $36 a year and provides unlimited music from a desktop application.

I’ve contacted multiple sources at Pandora seeking comment, and will post an update if Pandora confirms the news. Update: Pandora CTO Tom Conrad confirmed to me that the company has indeed raised new money, with Greylock Partners leading the round as a first-time investor. He declined to discuss the size of the round or the company’s valuation. Existing stakeholders in Pandora, according to Conrad, include Crosslink Capital, Walden VC, Labrador Ventures, King Street Capital, Hearst Corp., DBL Investors and Selby Ventures.

As well, Greylock’s David Sze is taking a seat on Pandora’s board of directors. Sze also led Greylock’s investments in Facebook, LinkedIn and Digg, among others.

  1. popurls.com // popular today…

    story has entered the popular today section on popurls.com…

    Share
  2. [...] Many startups have gone freemium over the years, among them Jott, whose service translates spoken messages into text and inserts them into email and other web services; online storage service provider Box; Evernote, which allows users to store notes in the cloud; career web site LinkedIn and Internet radio provider Pandora. [...]

    Share
  3. [...] web is already full of good ways to discover music. Pandora creates personalized radio stations through an ambitious system of tagging songs based on [...]

    Share
  4. [...] the same songs via Imeem, RealNetworks’ Rhapsody, MySpace-owned iLike and web radio provider Pandora on their own web sites. Lala’s streams can be played once as full songs by each user, then [...]

    Share
  5. [...] people are still trying. Pandora Media raised another $35 million this summer after a royalty deal helped breathe life into the Internet radio [...]

    Share
  6. [...] thanks to a licensing agreement forged after an arduous negotiation process, Pandora has the financial runway and the confidence to act on its mobile advantage and expand into the car radio market. After all, [...]

    Share
  7. [...] a handful of companies have raised substantial rounds this year — among them Pandora, Spotify and MOG — expectations for digital music companies are vastly different than they [...]

    Share
  8. [...] thanks to a licensing agreement forged after an arduous negotiation process, Pandora has the financial runway and the confidence to act on its mobile advantage and expand into the car radio market. After all, [...]

    Share
  9. [...] As Conrad explained, currently the web accounts for 20 percent of total radio listening, which means that Pandora needs to expand beyond just the browser if it wants to go after “80 percent of the opportunity.” I find it amusing that only a couple of years ago, Pandora was fighting for its life, thanks to the draconian policies of the music industry. Now it is audaciously viewing itself as the future of radio. Terrestrial and satellite radio providers had better watch out. (Related: Pandora Raises $35 million.) [...]

    Share
  10. [...] all that changed with the arrival of the iPhone and Pandora’s iPhone app. And in July 2009 the company raised $35 million. With total sales of about $50 million last year, it is well on its way to being profitable and has [...]

    Share

Comments have been disabled for this post