Sonos develops integrated hardware and software for high-end wireless home audio, including smart speakers such as the Play:3 and a recently added wireless subwoofer. Its system streams music from services like iTunes and Spotify and is controlled via an app available on Android, iPhone, and iPad. The company emphasizes design and product detail, having operated for almost a decade while building both devices and the accompanying software. Sonos reported about $250 million in revenue last year and is streaming into more than one million rooms. Recent hires include Robbie Bach (former Microsoft Xbox head) and RIM’s Head of Global Sales, supporting its commercial expansion. The product lineup and controller ecosystem aim to provide a full-range home audio offering without heavy advertising spend. Sonos builds consumer home-audio systems and music players, historically selling high-end, multi-thousand-dollar systems and more recently the $400 S5 music system controlled via iPhone. The S5, introduced in 2009, has driven “massive growth” and broadened the company’s market reach. Sonos has been operating since 2003. The company has raised capital previously—about $40 million from private angel investors and BV Capital—and has now taken an additional $25 million from Index Ventures. The new capital is being taken as growth equity and will be used to speed market penetration and fund expansion. Index Ventures partner Mike Volpi has joined Sonos’s board and is expected to bring scaling and sales expertise to the company. Sonos develops wireless, digital music streaming players that can be used throughout the house. Its Digital Music Systems can read music from network hard drives and URLs and play those files. Sonos added support for RealNetworks’ Rhapsody as of last September and recently signed a deal with Pandora. The company is competitively positioned against consumer players such as Microsoft Zune and Apple iPod. Financially, Sonos raised $6 million in a Series B from BV Capital and several other investors. That Series B adds to a previously disclosed $32 million Series A, of which BV Capital accounted for $10 million.

Total raised

$166M

Funding rounds

3

Latest round

Equity

Latest activity

Jun 2012