Music Networx, a German online distributor of live music and a portfolio company of venture capital firm Earlybird, has invested in Simfy, a music sharing website.
The investment will be used to finance simfy’s re-launch. The site currently has more than 1.4 millions users, with an average of 300,000 new users a day. The re-launch will include a premium flat-rate music streaming model in addition to its existing free streaming model currently based on over 1.5m available tunes.
Music Networx is the name behind Concert Online, the internet business which specializes in providing users with downloads of full-length concert films and audio recordings.
CEO Gerrit Schumann, said: “Music Networx’s live music know-how and portfolio of live recordings matches ideally with simfy’s experience in music streaming and its portfolio of studio music. Together we can offer fans and artists significant added value.”
Earlybird first invested in the Cologne-based business in June this year, leading a €3.3m funding round with existing investors DuMont Venture and Klaus Wecken, all of whom financed the investment in simfy.