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8tracks is offering securities through the use of an Offering Statement that has been qualified by the Securities and Exchange Commission under Tier II of Regulation A. A copy of the Final Offering Circular that forms a part of the Offering Statement may be obtained both here and below. This profile and accompanying offering materials may contain forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. These statements reflect management’s current views with respect to future events based on information currently available and are subject to risks and uncertainties that could cause the company’s actual results to differ materially. Investors are cautioned not to place undue reliance on these forward-looking statements as they are meant for illustrative purposes and they do not represent guarantees of future results, levels of activity, performance, or achievements, all of which cannot be made. Moreover, no person nor any other person or entity assumes responsibility for the accuracy and completeness of forward-looking statements, and is under no duty to update any such statements to conform them to actual results.

Monthly Active Users (MAU)

5,000,000+

Monthly Listener Hours

20,000,000+

  • Over $33,000,000 of indicated investment interest from over 35K supporters
  • 5M monthly active users who stream 20M-30M hours of music each month.
  • Amount raised:  
  • Close date:  
  • Indicated Interest:  
  • Round Size:  US $11,000,000
  • Raise Description:  Series A
  • Minimum Investment:  US $99 per investor
  • Security Type:  Preferred Equity
  • Pre-Money Valuation:  US $28,000,000

"The best place to create and discover thoughtfully curated playlists." - David Porter, CEO of 8tracks


Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.

Playlists are compiled by people who know and love music. DJs upload MP3s from their music collection or select songs from the 8tracks library to sequence a playlist of at least 8 tracks. DJs create context for each playlist with a title, cover art, description, and tags that classify the playlist by genre, activity and mood. Listeners browse or search tags and artists to find a playlist of interest, or simply enjoy a playlist recommended based on their music preferences.

8tracks reaches 5M monthly active users who stream 20M-30M hours of music each month. Around two-thirds of that streaming is delivered to mobile devices and two-thirds is delivered to listeners in the U.S. and Canada. According to comScore, 8tracks is the third-largest “pure play” internet radio service among U.S. millennials.

Even with large incumbents, the market opportunity for online music is significant. Some 80% of all music listening is delivered through some form of radio -- be it traditional, satellite, or internet. And 80% of radio listening in the U.S. still happens through traditional radio. As it becomes easier to tune into internet radio in the car and home, we believe that lean-back radio listening will shift online and the market in both the U.S. and beyond is up for grabs.

Launched on August 8th, 2008, 8tracks was bootstrapped without employees for its first three years of existence. In August 2011, it hired its first full-time employees. Shortly thereafter it raised a $1.2M Seed round from Index Ventures, Andreessen Horowitz, 14W (backed by Len Blavatnik, whose Access Industries owns Warner Music Group), and a handful of angels from the music sector. Our angel investors included DJs Pete Tong and Steve Aoki, as well as Atlantic Records’ Chairman Craig Kallman, and Shazam co-founder Philip Inghelbrecht. The company has raised $3.3M to date and currently employs 26 people in Mission Dolores, San Francisco, and the Flatiron District, New York City, with satellite advertising salespeople in Chicago and Toronto.

What investors in 8tracks are saying

"8tracks is the future of radio."

- Pete Tong | DJ & Producer, BBC Radio 1


"8tracks is more than just a music service -- it's a real community built on a shared love of music."

Steve Aoki | DJ & Producer, Dim Mak Records


"It's been amazing to watch 8tracks grow over the years. There's simply nothing else quite like it."

Philip Inghelbrecht | Founder, Shazam; ex-YouTube


“Playlisting has exploded to become an amazing path for fans to discover and share music. The team at 8tracks has nailed it by forging a fantastic community that brings together artists, DJs, and listeners in a dynamic, creative exchange. It’s a great way to promote artists, but more importantly, it gives fans a compelling destination to find new music, which makes it a win-win for everyone.” 

- Craig Kallman | Chairman, CEO, Atlantic Records


Pitch Deck

Product & Service

Listeners choose 8tracks over competing digital music services due to the depth of music selection. 8tracks has more than 2m playlists spanning every imaginable artist, genre, activity, mood and other theme -- delivered in a thoughtfully-packaged, lean-back fashion. In fact, some two-thirds of the streaming on 8tracks hails from independent labels or independent artists. This depth in turn affords a truly extraordinary opportunity for music discovery, with less repetition than that encountered on other internet radio services.

Each playlist tells a story, with a soul and personality behind the music. There is a human touch, a je ne sais quoi that transcends the music selection itself. Listeners and DJs can engage in a dialogue around the music, or really anything, connecting music through people, and people through music.

DJs create playlists on 8tracks because they want to help artists that they love to find an appreciative audience. Those artists may not get much attention on other outlets for streaming music. The DJs’ “fuel” for mix-making is the intrinsic reward of being recognized as a tastemaker, or an opinion leader, and they also enjoy the opportunity to engage in a dialogue with listeners.

Artists and labels, particularly those of the independent variety, love 8tracks as it provides an opportunity for exposure. The 8tracks audience is musically adventurous and loves discovering new music. Artists and labels can pay to promote a song after a playlist that is stylistically similar to that promoted song.

Brands love 8tracks as it provides an opportunity to reach millennials. 88% of our audience is aged 18-34, and that audience is highly engaged, early adopting, and culturally influential. Advertisers can run standard IAB advertising units, video ads, and native sponsored playlists on the platform. Top clients include Under Armour, Red Bull, and Victoria's Secret.

Media Mentions

Team Story

8tracks founder David Porter conceived of 8tracks as a mash-up of London’s electronic music scene of the late 1990s and one specific feature of the original Napster.

Rewind to 1996: David moved to London with accounting firm Arthur Andersen and quickly took to what was the vibrant mecca of electronic music at the time. A novel aspect of electronic music's fandom was its focus on the DJ. Given so many fragmented producers of electronic music spanning myriad subgenres, listeners needed a musical sherpa, a human filter, to make sense of it all. Whether the listener discovered music on BBC Radio 1 or pirate radio, from a compilation CD or at the club, it was the DJ -- not the artist -- who served as the focal point for music discovery.

Fast forward to 1999: Napster had recently launched. While the service itself wouldn’t last, David thought one feature was game-changing: the Hotlist Button, which allowed a user to see all of the MP3 files on another user's hard drive. This was arguably the first example of online social music discovery. It was as if you had walked into a complete stranger’s home to check out his music collection, knowing in advance that you had shared musical tastes.

As more music became available because of the decreasing costs of production and distribution, David believed the need for curation and discovery was accelerating. To address this opportunity, he applied the DJ paradigm that he knew and loved in London to bring order to the Napster Hotlist feature: the vision for 8tracks was to be a social network focused on the creation and consumption of streaming playlists. The NASDAQ crashed the following spring, and the VCs with whom David spoke -- while intrigued by the concept of a social music service -- urged him to get firsthand experience before building the company. He joined Live365, an early internet radio service that also featured stations created by a subset of its users, and soon cut his teeth leading the digital music startup. Eight years later, David launched 8tracks on August 8th, 2008. 

8tracks quickly spread through word of mouth, amplified by social media. Themed playlists that captured shared cultural moments proved particularly popular. Web visitors jumped from 30,000 in February 2009 to 300,000 in March 2009 when 2 such playlists blew up on StumbleUpon: "Songs that make you feel better" (happy songs for recessionary times) and “The Ocarina of Rhyme” (featuring classic hip hop music alongside the soundtrack to the video game Zelda). Social sharing has driven growth -- and backlinks -- ever since, and these backlinks now help 8tracks rank highly for most search queries that include a genre, activity, or mood next to words like music, playlist, or mix.

8tracks remains a small team focused on doing the right thing for our customers. We love beautiful, smart products. Our goal is to deliver the highest quality to our listeners, DJs, artists and brands -- in effect, to “matchmake” among these stakeholders. To that end, 8tracks is building ever-better recommendation systems, an improved first-time user flow to ensure new listeners find playlists they’ll love, and integrations with on-demand subscription services to offer interactive access to 8tracks playlists and drive music subscriptions.

Founders and Officers

David Porter is the CEO and founder of 8tracks. Until 2006, he helped lead Live365, the pioneer of "social" internet radio, achieving profitability in 2005. David wrote the plan for what is now 8tracks during business school at Berkeley, informed in large part by the DJ scene in London of the late 1990s. His favorite band remains New Order.

David Porter

CEO

David Porter is the CEO and founder of 8tracks. Until 2006, he helped lead Live365, the pioneer of "social" internet radio, achieving profitability in 2005. David wrote the plan for what is now 8tracks during business school at Berkeley, informed in large part by the DJ scene in London of the late 1990s. His favorite band remains New Order.

Key Team Members

Peter Buettner

VP, Engineering

Alan Poyer

Product Marketing Manager

Sam Filer

Director, Finance & Operations

Notable Advisors & Investors

Brad Lucas
Jacques de Champlain
Tina Dussault
Jonathan Cross
Keith Chan
Diego Quevedo
Melody Randolph
Safi Marroun
Christer Lofgren
Fred Mcintyre
Michael Moe
Darren Lee
Greg Anderson
Index Ventures

Investor, Multi-stage international venture capital firm.

Andreessen Horowitz

Investor, Silicon Valley-based venture capital firm.

Silicon Valley Bank

Investor, Investment Bank with 27 U.S. offices.

Steve Aoki
Pete Tong
SoftTech Ventures
Jon Maples

Term Sheet

Fundraising Description

  • Round description
    Series A

  • Round size
    US $11,000,000

  • Minimum investment
    US $99
  • Key Terms

  • Security Type
    Preferred Equity

  • Pre-money valuation
    US $28,000,000
  • Additional Terms

  • International investor minimum (w/o US bank account)
    US $10,000
  • Minimum wire investment
    US $10,000
  • Risks and Disclosures

    What is this page about?

    This is 8tracks' fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. You will also find a copy of the 8tracks' Offering Circular, which has been qualified by the SEC. The Offering Circular includes important details about 8tracks' fundraise that you should review before investing.

    How will 8tracks use this funding?

    New funding will help us make it easier for listeners to find playlists they’ll like, and create new ways to hear the right playlist at the right time - giving a refreshing listening experience specially tuned to all your favorite kinds of music.

    We plan to offer a more complete music library by adding millions of free tracks for anyone to use and streamline the ability for people to make playlists anywhere - even on their phones.

    We’ll be empowered to bring 8tracks to a global audience, add support for new platforms, and build a variety of new features for DJs and listeners. Expanding our 8tracks Plus offering for paid subscribers will also be essential for our future.

    What are the benefits of investing?

    The biggest benefit for our entire community is that 8tracks continues, and will have the opportunity to grow and thrive into the future. In terms of individual benefit, you receive non-voting preferred shares in 8tracks. Most startups don't pay dividends, as the idea is to reinvest any profits to drive more growth. However, you would stand to benefit if 8tracks were to be acquired or go public down the road. Stated another way, as an investor you can see the same benefit as any other VC or angel investor in terms of ROI.

    If I’m outside the US, can I still invest?

    Anyone can invest, regardless of location, but the setup procedure is a bit different for non-US citizens. Investors can be verified using a government issued photo ID that has a date of birth (such as a driver’s license). Please email SeedInvest directly at contactus@seedinvest.com for help with the account verification process to allow investments to be executed on your account.

    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement. In addition to monthly account statements, you may also receive periodic updates from 8tracks about their business.

    What are the risks of this investment?

    This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. You should carefully consider the specific information and risks disclosed in 8tracks’ profile and Offering Circular.

    What if I change my mind about investing?

    Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, let SeedInvest know by emailing contactus@seedinvest.com.

    How can I sell my shares in the future?

    Currently there is no market or liquidity for these shares. Right now 8tracks does not plan to list these shares on a national exchange or another secondary market. At some point 8tracks may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when 8tracks either lists their shares on an exchange, is acquired, or goes bankrupt.

    What will I need to complete my investment?

    To make an investment, you will need the following for regulatory reasons:

    1. Personal information such as your current address and phone number

    2. Employment and employer information

    3. Net worth and income information

    4. Social Security Number

    5. ABA bank routing number (found on personal checks or bank statement)

    Can I become a verified investor without providing my social security number or passport?

    Yes. Investors can be verified using a government issued photo ID that has a date of birth (such as a driver’s license). Please email SeedInvest directly at contactus@seedinvest.com for help with the account verification process to allow investments to be executed on your account.

    How does investing on SeedInvest work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by 8tracks. Once 8tracks accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to 8tracks in exchange for your shares. At that point, you will be a proud owner in 8tracks.

    Why do you need my income and net worth?

    We require your income and net worth because the SEC has placed important investment limitations for your protection. If you are non-accredited, your investment per offering cannot be more than 10% of your income or net worth, whichever is greater. We will rely on your stated income and net worth to determine your maximum investment per company.

    General Risks and Disclosures

    Start-up investing is risky. Investing in startups is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company which can be found in this company profile and the documents in the data room below.

    Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.

    The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, you are not entitled to receive any dividends on your interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site.

    Valuation and capitalization. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.

    You may only receive limited disclosure. While the company must disclose certain information, since the company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The company may also only obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events — through continuing disclosure that you can use to evaluate the status of your investment.

    Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the company’s employees, including its management. You should carefully review any disclosure regarding the company’s use of proceeds.

    Possibility of fraud. In light of the relative ease with which early-stage companies can raise funds, it may be the case that certain opportunities turn out to be money-losing fraudulent schemes. As with other investments, there is no guarantee that investments will be immune from fraud.

    Lack of professional guidance. Many successful companies partially attribute their early success to the guidance of professional early-stage investors (e.g., angel investors and venture capital firms). These investors often negotiate for seats on the company’s board of directors and play an important role through their resources, contacts and experience in assisting early-stage companies in executing on their business plans. An early-stage company may not have the benefit of such professional investors.

    8tracks's Offering Circular

    The offering circular is the legal document filed with the SEC for a Regulation A offering and provides facts that an investor needs to make an informed investment decision. The offering circular includes an overview of company and company's business, historical financials and capitalization, and key risk factors.

    Download 8tracks's  Offering Circular here.

    Frequently Asked Questions

    About Reg A Offerings
    What does it mean that the SEC has qualified this offering?

    "The SEC has qualified this offering" means the SEC has permitted 8tracks to offer for sale the securities described in the Offering Circular to investors such as you. The SEC is not judging the merits, accuracy, or completeness of the offering and information in the Offering Circular. Rather, the SEC is merely ensuring 8tracks has met all legal disclosure and regulatory requirements necessary to make these shares available to you.


    Making an Investment in 8tracks
    How does investing work?

    When you complete your investment on SeedInvest, your money will be transferred to an escrow account where an independent escrow agent will watch over your investment until it is accepted by 8tracks. Once 8tracks accepts your investment, and certain regulatory procedures are completed, your money will be transferred from the escrow account to 8tracks in exchange for your shares. At that point, you will be a proud owner in 8tracks.


    What is the difference between preferred equity and a convertible note?

    Preferred equity is usually issued to outside investors and carries rights and conditions that are different from that of common stock. For example, preferred equity may include rights that prevent or minimize the effects of dilution or grants special privileges in situations when the company is sold.

    A convertible note is a unique form of debt that converts into equity, usually in conjunction with a future financing round. The investor effectively loans money to a startup with the expectation that they will receive equity in the company in the future at a discounted price per share when the company raises its next round of financing.

    To learn more about startup investment types check out “How to Choose a Startup Investment” in our academy.


    What will I need to complete my investment?

    To make an investment, you will need the following information readily available:

    1. Personal information such as your current address and phone number
    2. Employment and employer information
    3. Net worth and income information
    4. Social Security Number or government-issued identification
    5. ABA bank routing number and checking account number (typically found on a personal check or bank statement)

    What if I change my mind about investing?

    Until a closing occurs, you may cancel your investment at any time, for any reason. You will receive an email when the closing occurs and your shares have been issued. If you have already funded your investment and your funds are in escrow, your funds will be promptly refunded to you upon cancellation. To cancel your investment, please go to your portfolio page.


    After My Investment
    How can I sell my shares in the future?

    Currently there is no market or liquidity for these shares. Right now 8tracks does not plan to list these shares on a national exchange or another secondary market. At some point 8tracks may choose to do so, but until then you should plan to hold your investment for a significant period of time before a “liquidation event” occurs. A “liquidation event” is when 8tracks either lists their shares on an exchange, is acquired, or goes bankrupt.


    How do I keep track of this investment?

    You can return to SeedInvest at any time to view your portfolio of investments and obtain a summary statement.


    Other General Questions
    What is this page about?

    This is 8tracks's fundraising profile page, where you can find information that may be helpful for you to make an investment decision in their company. The information on this page includes the company overview, team bios, and the risks and disclosures related to this investment opportunity. You will also find a copy of the 8tracks's Offering Circular, which has been qualified by the SEC. The Offering Circular includes important details about 8tracks's fundraise that you should review before investing.


    What are the risks of this investment?

    This investment is highly speculative and should not be made by anyone who cannot afford to risk the entire investment amount. In addition to these risks, you should carefully consider the specific information and risks disclosed in 8tracks’s profile and Offering Circular.