Up, Up and Away: The Spotify Balloon is a Cautionary Tale

Already we see leaks to the tech press that Spotify is pushing off its IPO to next year while it pursues a “path to profitability”. Now that’s a new one–the company has previously told investors a growth story like many other startups. But unlike most other startups, Spotify now has a $1,000,000,000 convertible loan from private equity companies staring it in the face–along with what will no doubt turn out to be credit card interest rates when the total cost of the money is calculated–and that complicates the IPO picture.