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Turntable.fmMusic startup Turntable.fm is looking for a fresh infusion of $5-10 million at a $40 million valuation, reports BetaBeat.

Additional capital is definitely necessary for Turntable.fm to compete against other music startups such as Pandora, Slacker Radio and Spotify.  The company’s current level of funding has not been disclosed. But as BetaBeat notes, Turntable.fm is the reincarnation — the “pivot” — from the failed venture Stickybits, which raised almost $2 million.

Turntable.fm turns its users into DJs who can share musical tastes within specific virtual rooms classified by subject or  genre. Only five DJs can share music in a single room, but anyone can enter a room to listen. All users within that room can rate song selections as  “Lame” or “Awesome.” It’s an innovative way to make listening to music a social experience, which has attracted high profile DJs like author Neil Gaiman and DJ Sir Mix-A-Lot.

Although Turntable.fm only launched in late May, its music service has over 300,000 registered users as well as a growing number of unofficial hacks and apps, according to the BetaBeat report. Interest in the music service is so high that the company was forced to throttle new user registrations to limit operating costs and avoid downtime.

Turntable.fm was co-founded by Billy Chasen, who also created popular real-time analytics service ChartBeat.

UPDATE: Business Insider is reporting that Turntable.fm raised $7.5 million at a $37.5 million valuation. The new round includes all the initial investors, including Polaris Venture Partners, Mitch Kapor, First Round Capital and Lowercase Capital. This brings the company’s total funding to $9.1 million, according to the report.

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