Smule, the maker of pioneering social music apps like Ocarina, Magic Piano, and Sing! Karaoke, has raised $38 million in new funding.
The new round — a combination of equity and debt funding — was led by Adam Street Partners, while existing investors Bessemer Ventures and Shasta Ventures also participated. City National provided the debt financing, the company said. San Francisco-based Smule plans on using the new financing for marketing, product development, and international expansion.
Since its founding in 2008, Smule has built what amounts to a worldwide music social network. Its community of 25 million people around the world performs 4 billion songs a year, and records 1.5 terabytes of music a day on the company’s network. In 2014, Smule brought in $40 million in revenue, with 350,000 paying subscribers accounting for 85 percent of sales.
The company was founded by Stanford University music professor Ge Wang. But Wang left the company in 2013 to focus on his academic work. Cofounder Jeffrey Smith continues to lead the company as its chief executive.