Swedish Soundtrack Your Brand, a fast-growing background music company, has raised $22 million to boost its global presence from Industrifonden and others.
New investor Balderton Capital participated in the round, together with existing investors including Creandum, Northzone and Telia Company.
The consumer music industry has been in focus of music startups for years, but Sountrack Your Brand is tapping the billion-dollar market for background music, which has been overlooked and left behind. “The result is a primitive, outdated and fragmented industry with a huge untapped potential, where many businesses still play music using CDs or illegally using consumer streaming services,” it describes the market situation.
Soundtrack Your Brand says it provides the industry’s first modern music streaming platform licensed to use in public and commercial environments and a scientifically proven music curation model for brands. The service combines data analysis with hands-on expertise to deliver content that fits individual brands, boosts sales and makes staff happier.
“Background music today is sold as a utility, and there’s rarely much thought going into what music brands are playing and why,” Ola Sars, CEO and co-founder of Soundtrack Your Brand, said in a statement. “Today’s background music sucks for brands and consumers alike, and it’s hurting the music industry at large. As lovers of music and technology, we’re completely overhauling this industry, to once and for all kill bad background music.”
Over the past 12 months, Soundtrack Your Brand expanded from the Nordics into more than 100 countries worldwide. It has seen both revenue and user base grow by more than 400 percent, with continued trajectory into 2017. Key customers include McDonald’s, Nike, TAG Heuer and Toni & Guy, in addition to thousands of small and medium-sized businesses. The company was founded by Andreas Liffgarden and Ola Sars, former executives with Spotify and Beats, and with backing from Spotify.