Image via Spotify

Image via Spotify

Just a few days after SoundCloud launched their new subscription service, Spotify has revealed new investments of its own. The Swedish streaming giant turned to private equity company TPG, hedge fund Dragoneer Investment Group, and Goldman Sachs for most of the $1 billion dollars in additional funding.

The money is technically “convertible debt,” which means the investors will have a chance to buy in at a discounted rate should Spotify decide to go public. Some experts say that’s going to happen in 2017—Spotify already had $600 million in the bank at the time of this new round, so even though they’re losing money (Spotify lost $180 million in 2014), this new investment will likely keep the company afloat until their IPO.

Spotify is still growing—they recently announced surpassing 30 million paid subscribers—but so is their competition. With SoundCloud entering the ring as yet another competitor for paid music subscriptions, the future of streaming in the music industry is still opaque at best. How Spotify spends this billion dollars could well decide their plans for the future of music streaming.