SoundCloud Receives Investment from Ashton Kutcher's A-Grade Fund, Passes 5 Million Users
SoundCloud Receives Investment from Ashton Kutcher's A-Grade Fund, Passes 5 Million Users

Sound-sharing site SoundCloud has received an undisclosed amount from A-Grade Fund, the venture capital fund led by actor Ashton Kutcher, artist manager/entrepreneur Guy Oseary and billionaire investor Ron Burkle. At the same time, the company announced it has surpassed five million users of its cloud-based service.

A-Grade Fund has previously made investments in such startups as Airbnb, and SeatGeek.

"It's totally awesome to welcome Guy and Ashton into the SoundCloud family, especially this week as we celebrate such a significant user milestone," said co-founder Alexander Ljung in a statement posted at The Next Web. "A-Grade are joining our mission to get everyone creating and sharing sound in their everyday lives, and with their knowledge and passion for new technologies and using social media to reach and influence people all over the world, their support will be invaluable."

When Billboard spoke with Ljung in April (registration required) he said the company had just surpassed 4 million users. It had only 1 million users in May 2010 and grew from 2 million to 3 million in a span of just 97 days. As its user base has grown, SoundCloud has seen a wider variety of people signing up, said Ljung. "We have people using it to send audio tweets to the world, people that record bird sounds or talk radio, comedy."

The Berlin-based startup raised $10 million earlier this year from Index Ventures and Union Square Ventures. It had obtained $3.3 million from earlier investors.

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