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Spotify Is Looking To Raise $500 Million In New Funding

Jan 30, 2015, 02:47 IST

Spotify is looking to raise $500 million with help from Goldman Sachs, the Wall Street Journal reported Thursday.

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Goldman Sachs has contributed to Spotify's previous fundraising efforts.

Citing sources familiar with the matter, the Wall Street Journal says this could offset the company's IPO for another year. Both the amount that will be raised as well as the company's valuation - which could be more than $6 billion, according to WSJ's sources - are yet to be determined.

"The company is talking with investors who typically buy into companies ahead of an IPO, including mutual fund T. Rowe Price, they added," the Wall Street Journal said. "Spotify has expressed a willingness to provide investors with "ratchet" provisions that give them a guaranteed return in the event of an IPO, one person said."

In total, Spotify has raised $537.8 million in seven rounds from 17 investors, including the Coca-Cola Company, Goldman Sachs, Kleiner Perkins, and Founders Fund.

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Spotify declined comment on this story.

Read the Wall Street Journal's full story here.

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