Spotify is seeking to raise money from private investors in a deal that would put a valuation of as much as USD 4 billion on the online music service, people familiar with its plans told the Financial Times. It last raised cash last summer, at a valuation of USD 1.1 billion, as part of efforts to support its launch in the US. The rapid adoption of the service on Facebook, which made a feature of Spotify when introducing an upgrade to its own site last September, has boosted the confidence of the company in gaining a much higher valuation, according to one person familiar with the fundraising plan. According to one investor not involved with the company, Spotify is looking for "hundreds of millions of dollars" to build a war chest in preparation for future licensing negotiations with the music industry. The proposed deal would value the company in the range of USD 3.5-4 billion, two people told the paper. Spotify refused to comment on its plans.
