Internet radio startup 8tracks has quickly generated over $25 million in indicated interest from investors under Regulation A+ on SeedInvest. According to information provided by the investment crowdfunding platform, more than 29,000 individuals have expressed their intent to purchase shares in the young company.
8tracks currently has a well-established user base so they are clearly seeing support from their consumers. The platform claims more than 6 million active monthly users that stream over 20 million hours of music each month.
Discover refreshingly human playlists.
8tracks is entering a crowded space competing against the likes of Pandora, Apple Music, Spotify and more, but the company has differentiated it service from the algo driven music stack by having real, living, breathing people compile the music playlists. More like radios days of lore.
8tracks management states;
“Even with large incumbents, the market opportunity for online music is significant. Some 80% of all music listening is delivered through some form of radio — be it traditional, satellite, or internet. And 80% of radio listening in the U.S. still happens through traditional radio. As it becomes easier to tune into internet radio in the car and home, we believe that lean-back radio listening will shift online and the market in both the U.S. and beyond is up for grabs.”
Interestingly, 8tracks started the hard way. It was bootstrapped by its founders.
Launched in 2008, for the first three years of its existence, not a single employee was paid. Jump back to today and big name VCs have fallen in love with the concept. In 2011, seed funding in the amount of $1.2 million came from Index Ventures, Andreessen Horowitz and a squadron of angels that love music. The company has raised a total of $3 million to date and currently employs 30 people in Mission Dolores, San Francisco, and the Flatiron District, New York City, with salespeople in LA, Chicago, and Toronto.
8tracks is going the advertising route to monetize its platform. The offer states, “2/3s of our audience is aged 18-34, and that audience is highly engaged, early adopting, and culturally influential. Advertisers can run standard IAB advertising units, video ads, and native sponsored playlists on the platform. Top clients include Under Armour, Red Bull, and Victoria’s Secret.”
If you indicate you are interested in purchasing shares today – the offer does not bind you to a future action. The indication of interest helps management to better understand how much (or how little) they can potentially raise.
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