Epidemic Sound gets EQT investment for 40% of the company.

Epidemic Sound, a Stockholm, Sweden-based music company, announced getting into an investment agreement for getting EQT as a shareholder of the company.

Following the transaction, which has the financial details undisclosed, the approximate ownership split is the EQT Mid Market fund 40%, Epidemic Sound founders 40% and Creandum 20%, which means that existing investor Kichi Invest will have made an exit from the company. Kichi invested $1M at the beginning of 2017.

It should be noted that the deal was made through EQT's private equity fund, EQT Mid Market, and not through the VC arm EQT Ventures. One of Epidemic Sound's founders, Hjalmar Winbladh, is also a founding partner of EQT Ventures, launched in 2014 by EQT Partners. Since its founding, EQT Ventures mostly invested in Health Services, with 5 out of a total of 15 investments, and had not placed funding in the music vertical.

Epidemic Sound, founded in 2009 and led by CEO Oscar Höglund, is a music company offering high-quality music, primarily targeting video content production clients, in-store music and streaming platforms. Epidemic Sound works closely with talented composers and musicians across genres and geographies, whose music makes up the company’s cloud-based platform, containing over 30,000 tracks.

Since its founding, Epidemic Sound raised more than $7M in venture capital money. In 2016, it recorded SEK 54M ($6.4M) in sales and lost SEK 250k ($30k) in net profit.