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InvestX Capital - Case Study - Spotify

Case Study - Spotify

 

 

Spotify has reinvented the way people listen to music; it is the world’s #1 music streaming service with over 150M active users and over 70M paying subscribers.

 

Original Investment: Sept 2015 - Preferred Series G shares via a sidecar; $8.53B valuation.

2015 forecast revenues of €$1.9B; up 80% over previous year1

Exclusive Information Advantage: Information showed monthly growth rates faster than Apple Music, which launched off of iTunes, the largest music customer platform in history.

Follow-on Investments: 3 times in secondary market at discounts from 12% to 24% from last primary round. 

 

Continued to grow at 50%+/year with faster monthly growth rate than Apple music which launched off of iTunes the largest music customer platform in history; on pace to grow paid subscribers from 70M to 100M by next summer

Expecting a 2018 IPO with direct listing on NYSE at potential $20B valuation; long-term potential of being valued at $100B

 

 

Source:

1 - Manhattan Venture Partners 2016 report: "Spotify Update: the Rockstar of Streaming Services" - report available from InvestX upon request.