Spotify raises $350m at $8bn valuation, report says

Spotify, the popular streaming music service, has reportedly raised $350m in a new funding round at an $8bn valuation.

Goldman Sachs' institutional clients took part in the fundraising to support the company's growth, sources told CNBC.

Last week was the "first close" of the round, which means new investors may yet choose to take part in the fundraising, the sources said.

The reported $8bn valuation it twice the public market capitalisation of Spotify's rival Pandora.

Spotify declined to comment on the reports.

The company has more than 60 million active users, including more than 15 million paying subscribers. However, it faces increased competition in streaming including the recently launched Tidal, rapper Jay Z's new service. Apple is also expected to enter the market after its acquisition of Beats Music last year.