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X5 Music Group Sets Its Sails For US As It Secures 7 Million Euro Funding From Northzone Venture

X5 music groupGoing nuclear with your business, especially when it is related to a geographic expansion is a justified move especially if you are recognized as a major regional player. A similar story comes from the Stockholm based European Music company; X5 Music Group which is branching itself into the US.

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The Swedish music company announced that it secured a 7 Million Euro investment from Northzone Ventures. This isn’t  Northzone Venture’s first investment in a music related firm, given that they had earlier made a major investment in Spotify, a prominent Scandinavian music startup. With the current investment by NZ, the venture group has given X5 Music the necessary investments to expand beyond Europe and into the US Markets. And if X5 Music is actually able to make this, it will become the first Swedish record label in over five decades to move into the US region. With that said, X5 will be readying to start work at its New York office in early 2011.

The plan of action is simple, X5 intends to take its expertise in digital download market to the US region and its business plan is focused at providing major American artists an alternative in the existing music scene. Both the X5 Music and Northzone Ventures have a common interest, a potentially successful business plan and a lot off growth in the digital music category. We can gauge that with X5’s existing catalogue of over 120,000 products in various genre, an equally impressive distribution model of this digital content, with its products being sold across online music stores, mobile manufacturers, etc. So there is a lot X5 has to offer for its investors and add more value to Northzone Ventures’ equally impressive portfolio.

Torleif Ahlsand, general partner in Northzone Ventures summed it it up quite well stating: “X5 Music has grown quickly and with our investment we are hoping to accelerate this even more. I guess X5 deserves being held so high, given that it had 10 albums on the American Billboard charts in 2010, which is impressive given that their content is digitally distributed and its stronghold is Stockholm.

X5 Music Group is a Stockholm based music Company that specializes in digital download market. The X5 product portfolio includes over 120,000 products in numerous genres and each of these are marketed though a wide range of online music stores and mobile operators globally. X5’s main office is in Stockholm with consultants based across Europe and the Asian region as well.

Via TechCrunch

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