Spotify Valued At $1 Billion Based On $100 Million Funding

The Sweden based music streaming service Spotify is on the verge of closing a multi-million dollar round of funding led by venture capitalist firm DST.

The $100 million funding will lead to a valuation of the company at around $1 billion, as TechCrunch explains. The service, which is yet to launch in the US, has raised a total of €82.3 million up til now.

Digital Sky Technologies (DST) is a Russian venture capitalist firm that has a knack for investing in the right businesses. The firm has backed social networking platform Facebook, social games developer Zynga and daily deals website Groupon.

Spotify is currently in talks with US record labels to bring the service to the United States. Using Apple's new subscription model, Spotify will have to share a part of its revenue from its iOS app with the iPhone maker, but this has not apparently deterred DST from investing in the firm.

At present Spotify is mainly active within Europe, where it have over 10 million users.