Despite SoundCloud's recent strides in making deals with record labels, SoundCloud in the past had some huge losses that may have caused the company to go under at one point. As recently reported, SoundCloud went through $56.5 million in losses in 2014 which was quite significant from its losses in 2014 with $29.2 million.
SoundCloud's Alexander Ljung responded by saying:
“Our overhead base has increased faster than our revenues. After making inquiries, the Directors have concluded that they have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future. However, the Directors have concluded that there are material uncertainties facing the business. The Group’s business plan shows that further capital investment will be required in the next 12 months to fund the business. “People have alway recognised the massive scale of SoundCloud and the unique amount of creators and creativity [it has]. Everybody knows that all of the future stars are already on SoundCloud today, and people already know that if you are a star today, you are going to use SoundCloud to create a lot of buzz and promotion around new releases.”