Turntable.fm, the popular new service that allows users to share music with friends in virtual listening rooms, has raised $7.5 million at a $37.5 million valuation according to a report by Business Insider. In addition to gaining a new investor, the company has retained its initial investors in this round of financing.
This funding is a sign that investors may not be overly concerned about Turntable.fm's potential for legal trouble. Though the startup claims to adhere to the requirements of the Digital Millenium Copyright Act, which allows non-interactive internet radio service without licenses, it can be argued that the site is, by its nature, highly interactive. But it can also be argued that when users DJ on the site, it is simply a more democratic version of someone programming songs at a radio station.
Photos: Random Notes
Turntable.fm has already faced a significant stumbling block overseas. Due to copyright issues, the startup was forced to pull the plug on the service outside the United States, where it is not protected by the DMCA.
Update: In an interview with TechCrunch, Turntable.fm co-founder Seth Goldstein says the company has "not closed any new funding."