The Daily Startup: Spotify’s Valuation Soars in New Funding Round

dailystartup_D_20090806101628.jpgArt by Mike Lucas

The sound of Spotify‘s business must sound right for investors. The streaming-music startup is being valued at $8.4 billion in a new round of funding, The Wall Street Journal’s Douglas MacMillan and Telis Demos report. Among the investors that are reportedly joining the $400 million round are Goldman Sachs, a previous investor, an an Abu Dhabi sovereign-wealth fund. The new valuation is more than twice the $3.5 million market capitalization of Pandora.

ALSO IN TODAY’S VENTUREWIRE (subscription required):

CradlePoint, a wireless-networking company, has raised a $48 million Series B round, and it may use a portion of the funding to acquire other technology providers. The round was provided by new investors Sorenson Capital, Delta-v Capital and the Caprock Group.

Embera NeuroTherapeutics has collected $2 million to progress a medicine that could reduce the cravings that prevent smokers and users of drugs from breaking their addictions. New investor HRA Pharma joined this round, which also included return backer Seven Holdings.

Wingz, a ridesharing service, has raised $2 million in an equity seed round for a mobile app that lets travelers book prescheduled rides to and from the airport. Binux Capital, Blue Angel Ventures and Florence Venture Partners led the round, joined by Ocotea Holdings, Big Bloom Investments, Olive Tree and angel investor Larry Marcus.

Illuminate Ventures, a small female-led venture firm based in the San Francisco Bay Area, is seeking up to $30 million for its second fund, a regulatory filing said.

(VentureWire is a daily newsletter with comprehensive analysis of all the investments, deals and personnel moves involving startups and their venture backers. For a two-week trial, visit http://on.wsj.com/DJPEVCNews, scroll to the bottom and click “try for free.”)

ELSEWHERE AROUND THE WEB:

Drchrono Is Bringing Electronic Health Records to the Apple Watch. In the last few years health records have gone digital, and now one company is working to bring some of that information to the Apple Watch. Drchrono, which has made electronic health records available for the iPhone and the iPad, is launching its app on the Apple Watch, The Wall Street Journal’s Timothy Hay reports.

Medical Labs Settle Case. Venture-backed Singulex is one of the health laboratories that paid to settle civil allegations filed by the Justice Department that the labs paid doctors for patient blood and billed Medicare for medically unnecessary testing, the WSJ’s John Carreyrou reports. Singulex, which paid $1.5 million, denied wrongdoing, but it entered into corporate-integrity agreements with the Department of Health and Human Services’ Office of Inspector General.

23andMe CEO Talks About the Company’s Challenges and What’s Next. The startup 23andMe made news recently with its first direct-to-consumer genetic test approval, and Anne Wojcicki, the chief executive of the company, talks about that success in an interview with San Francisco public news station KQED. One forward-looking item that Ms. Wojcicki spoke about is the company’s recent announcement that it would be using its genetic database to create drugs.

We’re going to do it differently. I find it outright crazy that so few firms are researching who this drug will work for. We want to do the right thing even if it means cutting down our market size.

Write to Mike Billings at mike.billings@wsj.com. Follow him on Twitter at @mbillings