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Summary:

Pandora, the music streaming provider and Silicon Valley darling, has raised additional late-stage funding of an undisclosed amount. Pandora CEO Joe Kennedy said in an emailed statement the funding would be used “to invest in resources we need to continue to execute on our strategy.”

Updated. Pandora, the music streaming provider and Silicon Valley darling, has raised additional late-stage funding. The round, of an undisclosed amount, was led by GV GGV Capital and included Allen & Company. Pandora CEO Joe Kennedy said in an emailed statement the funding would be used “to invest in resources we need to continue to execute on our strategy.”

The company raised $35 million just last summer in a round led by Greylock Capital that coincided with it securing a long-term royalty deal for Internet radio.

These late-stage funding rounds, rather than IPOs, are increasingly common for today’s strong consumer Internet companies, with others like Facebook, Zynga and Groupon recently taking rounds from the Russian holding company Digital Sky Technologies, which included buying shares from early employees and investors. It’s unclear if anything like that happened with Pandora.

Pandora first launched in 2005 and tried a variety of business models before making freemium work (see that story, as told by CTO Tom Conrad, here). The company has more than 20 million uniques and took in $50 million in revenue last year.

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  1. Liz/OM,

    Pandora has more or less dominated this space for the past few years. They definitely had the first mover advantage.

    But, do you feel there is room for more than one large player in this space? Others like finetune, slacker etc. have tried to enter the market but have not gained as much traction as Pandora had. Why is that so?

    -Joe

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