Apple Music and Spotify may get more attention, but Internet radio gets more listeners (and don't forget about that profit).
San Francisco-based 8tracks might be overshadowed by big names like Pandora and Spotify, but the Internet radio service continues to grow quietly. The company announced Thursday it secured a $2.5 million debt financing from Silicon Valley Bank. The amount consists of $2 million-line of credit against receivables and $500,000 of "straight venture debt," according to CEO David Porter. The deal brings 8tracks' total funding to $3 million.
The influx of money allows 8tracks to further build its engineering and product teams. Already on board is vp of product John Maples, a former product executive at music subscription service Rhapsody. Porter says 8tracks has added two sales people in Los Angeles and New York and plans to hire another in San Francisco. The company currently has 32 employees and claims to have reached profitability in 2012.
The company also announced new partnerships with digital distributor TuneCore, classical distributor Naxos, Black Hole Recordings and Armada Records, the record label of world-famous DJ Armand Van Buuren, adding about 2.5 million tracks to 8tracks’ library of licensed tracks. About 6.5 million tracks were added in April through partnerships with INgrooves, CD Baby, Dim Mak and DashGo. A larger, independent-focused catalog -- now at 9 million songs -- means 8tracks playlist creators can create better playlists from mobile devices.