Investors in Imeem funding round revealed

It has emerged that social music site Imeem raised USD6m in a funding round led by existing shareholders Warner Music Group and Morganthaler Ventures in May. However, Sequoia Capital, which previously backed the firm in its Series A funding round, opted not to re-invest after reportedly losing confidence in the startup's business model.

The investors were revealed by TechCrunch. Imeem provides a social network for musicians and fans but has struggled to make money due to high royalty payments and the recent slump in the ad market. The network has also negotiated more favourable deals with record labels, and some commentators say it could reach profitability by early 2010.