More Details About Spotify's New Money

Spotify, one of my favorite new companies, is getting more money. Earlier today, Michael Arrington reported that he had heard from multiple sources that the Founders Fund has invested in the fast-growing European startup.

“We do not know the size of the investment; however, we believe it may have been a token amount to get [Founders Fund Managing Partner Sean] Parker’s involvement in the company,” Arrington wrote.

While my sources are confirming those rumors, they point out that the amount of money from the Founders Fund, contrary to Michael’s report, is actually substantial. It is said to be as much as multiple millions of dollars. Spotify wasn’t actively looking for funding and this new investment is being described as opportunistic.

With this rumored investment, Spotify now shares two major backers with Facebook – The Founders Fund and Chinese telecom mogul Li Ka-Shing. Spotify had previously raised $50 million from the Chinese mogul, who has also invested $100 million in Facebook. Whatever happens next, it is becoming clearer that Spotify will make a foray into the U.S.

Photo of Martin Lorentzon and Daniel Ek, co-founders, courtesy of Spotify.

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