"Soundcloud is here to stay,” wrote Alexander Ljung, the company’s chairman, who as part of the deal is stepping down as the firm's chief executive.

In a note circulated to shareholders earlier this week ( obtained by Axios ) Mr Ljung said without the Money Soundcloud would not be able “to continue as a going concern”.

"This financing means Soundcloud remains strong and independent,” Mr Ljung wrote in a blog post .

"Over the last few weeks, I’ve been moved by the outpouring of commentary around Soundcloud’s unique and crucial role in driving what global culture is today (and what it will become tomorrow).

Soundcloud will now need to look at reducing costs and doing more to monetise the service which, according to the firms latest publicly available figures, has more than 40 million users.