One of SoundCloud’s original crop of employees has now left the troubled social music media platform which has transitioned towards an increasingly aggressive revenue generation model in recent years. A Business Insider report following his departure went as follows…
Noël started as community manager and evangelist at SoundCloud in July 2009, before becoming VP of community and evangelist in August 2012. He became head of SoundCloud’s internal communications and evangelist in January 2014.
His departure comes after reports suggested that SoundCloud, which has been valued at $US700 million (£557 million) by investors, could be about to sell at a knockdown price, possibly leaving early shareholders with little to cash in.
SoundCloud — which has raised $US298 million (£238 million), including around $US70 million (£59 million) from Twitter, according to startup funding tracker Crunchbase — was in talks to sell for $US1 billion (£80 million), according to a Bloomberg report last July. But that figure could now be as low as $US250 million (£199 million), according to a Recode report this month.
A report in The Financial Times last week suggested that the founders of SoundCloud wouldn’t “receive a penny” unless the company is sold for upwards of at least $US200 million (£159 million). That’s due to the preferred stock options taken out by venture capitalists each time they invested in the company. If the founders shares are worthless, then it’s likely that shares owned by other SoundCloud employees will also be worthless.
As we’ve reported previously SoundCloud received renewed investment following a string of agreements with record labels concerned with copyright issues resulted in what was perceived to be a more stable future for the company. Rumour also has it Google has been considering the company’s potential for acquisition. However the company has seen other high level departures and Noël isn’t the first to go this year.