Investors in a new round of financing have pegged Spotify as having a value of 200 million euros - equivalent to about £170 million. The company has raised £30 million at that valuation.
Two parties have stumped up the cash - a unnamed venture firm and an Asian investor called Li Ka-Shing who has previously invested in Facebook and Joost. The funding will be used by the company to pay for expansion into the US.
There are concerns among some that Spotify's losses currently far outstrip its revenues, with slow uptake of its £10-a-month premium service, but an imminent iPhone application may change that. Most users plump for the free, ad-funded, option.