It seems that Sonos, manufacturer of wireless home music systems, is on its way of fulfilling its plan to become the Bose of the digital age, which its cofounder shared in an interview in 2011. The California-based company has raised $135 million in new investment from two funding rounds. It will also be adding new members to its board. Index Ventures, which previously invested in the company, did not participate in the latest financing.
Sonos raised $45 million in the first funding round. Investment firm Kohlberg, Kravis & Roberts (KKR) led the primary round. The other investors were Redpoint Ventures and Elevation Partners. The company will use the money to expand its line of multi-room music systems. Sonos also raised another $90 million in secondary financing which allowed BV Capital, employees, founders, and angel investors to profit from their shares.
There will also be changes to Sonos’ board of directors, with one director leaving and new ones joining. Andreas Von Blottnitz of BV Capital will be leaving the board because the investment firm’s business relationship with the music systems manufacturer is about to end. David Kerko of KKR will be joining the company’s board. Other new directors are Fred Anderson of Elevation Partners and John Maeda of the Rhode Island School of Design. Anderson had worked for Apple as CFO.
Insiders said that the $135 million is more than double what Sonos had previously raised from previous financings. The home-music system manufacturer had raised $65 million from BV Capital, Index Ventures, and angel investors. Index Ventures invested $25 million in Sonos in 2010. The company was introducing its products to China and Japan at that time and used the money for expansion.
Founded in 2002, Sonos first demonstrated its devices in 2004. It released the ZonePlayer 100 and CR100 in 2005. The company has evolved from manufacturing expensive wireless music players to a maker of affordable high-fidelity speakers that stream music directly from online sources or local playlists. Its latest product is the Sub, a £699 wireless subwoofer that integrates with all Sonos amplified devices.
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