Swedish startup Soundtrack Your Brand (SYB) has raised a $22m investment led by Nordic venture capital fund Industrifonden alongside UK’s Balderton Capital.
The company provides the background music industry’s first modern music streaming platform and what it claims to be a scientifically proven music curation model.
Unlike consumer streaming services, it’s licensed to use in public and commercial environments and SYB says it combines data analysis with hands-on expertise to deliver content that fits individual brands, boosts sales and makes staff happier.
The new funding will enable it to expand globally and perfect “the first truly modern streaming service” for businesses.
Capital general partner Lars Fjeldsoe-Nielsen, previously head of mobile at both Uber and Dropbox, said: “I’ve witnessed disruption first hand. Dropbox made storage cool, and achieved a shift from a consumer to a business proposition.
“Uber changed the way we think of transportation. SYB will do the same thing to background music.”
While the larger music industry has been busy saving itself from piracy, the market for background music has been overlooked and left behind. according to SYB. The result is a dysfunctional, outdated, fragmented and underserved industry, where businesses still play music using CDs, USB-sticks and satellite feeds, it said.
Andreas Liffgarden, SYB’s executive chairman and co-founder, said: “Background music today is sold as a utility, and there’s rarely much thought going into what music brands are playing and why.
“Today’s background music sucks for brands and consumers alike, and it’s hurting the music industry at large. As lovers of music and technology, we’re completely overhauling this industry, to once and for all kill bad background music.”
Björn Bergström, investment manager and lead for Industrifonden’s investment, said: “Soundtrack Your Brand has a massive opportunity to fully digitalise the background music industry. Leading that shift creates endless possibilities in terms of both insight and reach.”
Ola Sars, former COO and co-founder of Beats Music, co-founded Stockholm-based SYB in 2013 with Andreas Liffgarden, former global head of business development at Spotify.
In 2016, SYB expanded from the Nordics into more than 100 countries worldwide. Customers include McDonald’s, TAG Heuer and Toni & Guy.