Updated: Spotify Sank £4 Million In To Start-Up R&D

Updated: Music streamer Spotify’s Swedish R&D HQ finished 2007 and 2008 48.11 million SEK (£4 million) down after building out its app in its start-up years, according to its annual report filed at Sweden’s Bolagsverket corporate listings authority.

The Stockholm-listed company recorded annual losses of 16.26 million SEK (£1.35 million) and 31.75 million Swedish krona (£2.64 million) respectively. But, as the company contacted us to say, the figures aren’t representative of its total activities – it has a parallel London office handling many of its non-developmental functions like the ad sales, is also registered in Luxembourg and these were early-years developmental costs, incurred before what it hopes will be eventual success.

But, with Spotify under everyone’s microscope, they’re interesting nonetheless. Other figures from Stockholm…

— Spotify had an average of 34 staff in 2008 costing it 22 million SEK (£1.83 million). But headcount has now grown to 75, the company says).

— Non-staff costs were 10.5 million SEK (£876,000).

— The company had material assets of 2.09 million SEK (£175,000) at the end of 2008.

CEO Daniel Ek and co-founder Martin Lorentzon have previously said they invested 80 million SEK 80 million (£6.7 million) of their own funds and took in venture capital from Northzone Ventures and Creandum. And it’s thought Spotify has now inked a new funding round of £20 to £30 million with VCs and a licenses-for-equity arrangement with labels.