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Music streamer Earbits has narrowly escaped the startup graveyard.

After shutting down its free music-streaming service on Monday, Earbits is back online thanks to a mystery investor, the company announced today.

An unnamed “strategic partner has stepped forward and provided the necessary funding to bring Earbits back online indefinitely,” Earbits chief Joey Flores wrote in a blog post.

A Y Combinator grad, the Los Angeles-based startup offers free music streaming without advertisements. It charges some artists and labels a fee for increased visibility on its site and apps, but listeners don’t pay a dime.

The model works well, Flores said last week, but the company simply ran out of money. It had raised $1.7 million in seed capital prior to this new funding.

“Thank you to everyone who came out in support of Earbits and our team. It was the most heartwarming show of support anyone could have asked for,” said Flores.

“It has been one hell of a week.”


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