Spotify has raised $100m (£61.7m) in a new investment round that values the music streaming service at $1bn.
Yuri Milner, the Russian technology investor who has already bought stakes in Facebook, Groupon and Zynga, is reportedly leading the $100m financing via his Digital Sky Technologies (DST) investment fund.
The two-year old firm is hoping the new cash will help it crack the lucrative north American market.
DST initially bought a $200m stake in Facebook in 2009, and is believed to have subsequently increased its stake to almost 10%. DST was also an investor in a $180m fund-raising for Zynga, the maker of popular Facebook games such as FarmVille.
Spotify, a Swedish start-up based in London, has raised €83m (£70m) since its online music streaming service was launched in 2009.
The company has long promised to bring its innovative service – which allows consumers to listen to music, interspersed with advertising, for free – to the US but has struggled to agree terms with record companies.
