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Suno, the AI music-generation startup, raised more than $400 million in a Series D funding round at a $5.4 billion post-money valuation, the company said on Wednesday. The round was led by Bond Capital, alongside IVP, Forerunner, Union Square $SQ NaN% Ventures, Alkeon, and Quiet. Existing investors Matrix, Lightspeed, Menlo Ventures, and Schroders Capital also participated.
The raise more than doubled Suno's valuation from $2.45 billion, where it last raised capital roughly seven months ago, according to TechCrunch. At that prior round, Suno raised $250 million, according to Bloomberg.
Co-founder and CEO Mikey Shulman told Bloomberg that the fresh funding will go toward building out its workforce, launching new offerings, and pushing the company's expansion forward. With a current workforce of around 200 people, Shulman told Bloomberg the company is targeting staff growth of up to 70% before 2026 is out. As of February, the company had crossed the 2 million subscriber threshold and was projecting annual revenue of $300 million, according to Bloomberg.
"Having more capital allows us to operate the business differently and take some bigger swings," Shulman told Bloomberg.
