Soundtrack Your Brand, a startup based in Stockholm, has recently announced a pre-growth investment of €15 million. This funding comes from a leading music investment company MUSIC, Dundee Partners, Balderton Capital, Fuel Venture Capital, Industrifonden, Telia, and DIG. Soundtrack Your Brand specializes in providing a comprehensive music streaming solution tailored specifically for commercial environments such as stores, hotels, and restaurants. The infusion of capital will play a crucial role in supporting Soundtrack Your Brand’s ambitious plans for market expansion, product development, operational enhancements, talent acquisition, and future merger and acquisition endeavors. This strategic investment is expected to propel the company’s growth trajectory and firmly establish its position as a global frontrunner in the B2B music streaming industry.
“It’s hard to believe but, before Soundtrack Your Brand, business owners had no legitimate option to play music on demand for their customers,” says Pincus. “Almost every business has some need for music – and most business owners believe that music creators should be paid for their work. It sounds obvious, but it took a mountain of technological and business innovation to bring on demand music to enterprise and Soundtrack nailed it.”
Soundtrack’s current ARPU is $33 and growing, compared to the B2C average of around $5, so the industry should be really motivated to support Sars’ ambition to digitize the legacy background music market. Soundtrack Your Brand unlocking the B2B market represents one of few tangible solutions to increasing ARPU for streaming worldwide.
The investment enables Soundtrack Your Brand to double down on its successful go-to-market strategy, delivering 60% YoY revenue growth in 2022, unlocking EBITDA profitability in Q1 2023 and reaching $25 million in ARR closing April 2023.
“Our mission to bring transparency and accountability to the dysfunctional background music market is gaining momentum,” Soundtrack Your Brand CEO Ola Sars said. “Our financial performance and operational efficiency are both already very strong, but with this investment Soundtrack Your Brand can expand our growth model into M&A, consolidating the fragmented background music market and ensuring continued premium ARPU and fair compensation to music creators.”
In conjunction with MUSIC’s investment, Pincus will join Soundtrack Your Brand’s board and support the company’s mission.
Moving into 2024, the company will raise in an additional growth round to fund the further consolidation of the global background music market.
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