SoundCloud Founder Eric Wahlforss gave a rare interview in which he discussed SoundCloud’s shaky beginnings during the financial crisis, its difference to Spotify and its role in the future of the music industry. Wahlforss shared his insights with the Swedish podcast Digitalpodden, and his interview has since been discovered and translated.
When asked about the highly successful music service Spotify, Wahlforss argues that SoundCloud brings the different parties of the music ecosystem together more effectively. With producers, curators and listeners connected more closely, he sees SoundCloud as the “radio of the future”.
At the moment, however, SoundCloud is valued at $700 million, a figure that Wahlforss finds relatively low. He predicts this valuation will rise significantly. In coming five years, Wahlforss says that the company will use the potential of the Internet to better the distribution and production of music.
Founded in 2007, the social sound platform snapped up seed funding with relative ease. After the financial crisis hit, however, SoundCloud lost its long-planned financing round and struggled to find investors who would take the necessary amount of risk. “The first months of 2009 were extremely hard,” reveals Wahlforss in the interview. It was London VC Doughty Hanson who recognized the startup’s potential with an investment of $3.3 million.
Image credit: SoundCloud