Struggling Music Service SoundCloud Raises $70 Million in Debt
- Ares Capital, Kreos Capital and Davidson provide credit
- Company will use funds to become ‘financially sustainable’
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SoundCloud Ltd., the popular but financially struggling online music service, said it has received $70 million in debt to fund growth plans.
SoundCloud, which earlier this year warned it may run out of money if it didn’t attract more paying customers, said it had secured the credit line from Ares Capital Corp., Kreos Capital and Davidson Technology. In a statement, the company said it would be used for developing technology and hiring "while building a financially sustainable platform."