Music streaming website Spotify is trying to drum up a valuation of close to £200m as it seeks new investment of between £20m and £30m.

The service, which has signed up more than 2m users in Britain since launching last October, took almost two years to persuade the four main record labels to let people listen free to their tracks, including songs by Black Eyed Peas, pictured.

Spotify makes money from advertising breaks and £9.99 monthly subscriptions.

If it achieves its valuation, Spotify will have almost trebled in value since it sold a £13m stake last autumn to Nordic investors Northzone Ventures and Creandum. Co-founders Daniel Ek, who helped set up children’s fashion website Stardoll, and Martin Lorentzon do not plan to give up control.

Ek said the business was doubling revenues monthly. “We are probably in better shape than most other companies in this market,” he added.

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