News - 27/05/2016

AmpMe raises $8 million round to expand “sound system” app

AmpMe raises $8 million round to expand “sound system” app

Canadian startup AmpMe has closed an $8m round of funding that will see the company further the development and marketing of its app, which it brands a “portable sound system”. 

The new round - led by Relay Venture with participation of Investissment Quebec, Slaight Capital, OMERS Ventures, Anges Quebec Capital and Real Ventures - was likely fuelled by the 2 million downloads that the company has racked up since its launch, and by the fact that the majority of its users are within the “magic” demographic of 15 to 24 years old. 

The core functionality of AmpMe is enabling phones to become a network of speakers, so friends meeting up in the backyard or in the park or for an impromptu house party can crank up the volume of the music by aggregating several phones’ speakers without delays. 

The app currently supports streams from SoundCloud and YouTube, which are free and so likely more appealing to its core demographic. It would certainly be nice to see the company add support for premium streaming services too, especially as more family plans are available and teens are slightly more likely to have access to their parent’s Spotify or Apple Music accounts. 

Currently, AmpMe is free. In time, the company plans on introducing advertising but at the moment it is focused on growing its user base and team.

Whether the app warrants an $8m investment is still a bit of a question mark, since at the moment AmpMe seems to be providing a neat feature rather than a complete product. However, the company is confident that the app can grow to become an interesting social hub, allowing users to build playlists together. 

 

(Andrea Leonelli) 

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