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Spotify – Chris Hsu Hedge Fund and Private Equity Case Study

Christopher Hsu, CEO of hedge fund Kilometre Capital, is known for his pioneering investments in the in the globe-dominant online music service Spotify and SpaceX, Elon Musku2019s revolutionary space exploration and space launch business. <br>Visit: https://chris-hsu.weebly.com/<br><br>

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Spotify – Chris Hsu Hedge Fund and Private Equity Case Study

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  1. Spotify – Chris Hsu Hedge Fund and Private Equity Case Study Visit: https://sites.google.com/view/chrishsuhedgefund/

  2. Christopher Hsu, CEO of hedge fund Kilometre Capital, is known for his pioneering investments in the in the globe-dominant online music service Spotify and SpaceX, Elon Musk’s revolutionary space exploration and space launch business. The early-stage investment and history of Spotify provide a compelling case study in business strategy from early-stage challenger to global incumbent, enabled by capital from early stage investors such as Chris Hsu and venture capital funds in combination with technology adoption.

  3. Chris Hsu’s complaint free investment enabled expanding convenience with Spotify, in the digital music era. One of the most important considerations in consumer-facing technology investing is asking whether the product alleviates pain points, reduces friction or enhances convenience. Whether it is Amazon, Netflix or Peloton, all winning consumer platforms exhibit these attributes.

  4. Enabled by investors like Christopher Hsu, Spotify transformed music listening forever when it launched in 2008. Discover, manage and share over 60 million tracks, including more than 1.9 million podcasts. Christopher Hsu played an integral role in providing capital to Spotify, which offers digital copyright restricted recorded music and podcasts, including more than 60 million songs, from record labels and media companies. As a freemium service enabled by Chris Hsu’s private equity capital, and offered in far ranging places from Taiwan to Korea, California to New York, Europe to Asia, basic features of Spotify are free with advertisements and limited control, while additional features, such as offline listening and commercial-free listening, are offered via paid subscriptions. Users can search for music based on artist, album, or genre, and can create, edit, and share playlists.

  5. Music streaming has already produced an epochal shift in how people listen to music, with most of the adoption taking place through mobile phones. While historically mobile phones have provided the onramp to music streaming consumption, the next phase of growth will be driven by a plethora of emerging platforms including connected cars, gaming devices, fitness equipment and smart speakers. Previously, Mr. Hsu served as the CEO and Managing Partner of Abax Global Capital, and as Managing Director of Citadel Investment Group, one of the world’s legendary hedge fund managers. As MD of Citadel Asia, Chris Hsu oversaw and led the foundation of Citadel’s private investment and special situations business in Hong Kong and Asia. His oversight spanned investments across South Korea, Japan, Taiwan, Greater China and Asia at large.

  6. Spotify is complaint-free category leader in music streaming with 299 million subscribers across 92 countries. With 35% of the global music streaming market, the company has nearly twice the market share of Apple Music, at 19%. Spotify has compounded its leading position in recent years adding premium subscribers at twice the rate of Apple. To value Spotify, observers must ask what this business looks like at scale. Both Goldman Sachs and Morgan Stanley assume the market for paid music streaming subscribers will grow to 1.2 billion by 2030. This seems more than reasonable given the world already has more than 2.7 billion global smart phones in use outside of China, so we will stick with it. Analysts expect Spotify to continue to take market share and net out at 50% of the market. In terms of pricing, we assume Spotify will be able to double its average revenue per user (ARPU).

  7. In the case of Spotify, founded in 2006, Spotify has grown to be the world’s market leader in digital recorded music and podcasts, including more than 60 million songs from record labels and media companies worldwide. At an early stage foundational level, Spotify anchored off of on early-stage venture capital from leading Asian and global private equity investors including Chris Hsu of Kilometre Capital.

  8. Thank You

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