SoundCloud is closing in on a Hail Mary deal that is meant to guarantee the company’s financial survival and give it a chance to pay down its debt, but comes with some serious sacrifices for existing investors. Under the deal, the music streaming platform is set to receive close to $170 million from the Raine Group and Singapore’s Temasek.

SoundCloud investors were informed of the deal Tuesday. Some existing institutional investors will also participate in the new funding, which is set to close Friday. Axios was first to report on the new cash infusion Thursday morning, and Variety was able to confirm the new funding with a source close to the company.

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SoundCloud didn’t respond to a request for comment.

Under the deal, the new investors will acquire more than 50 percent of the company, which had its pre-money valuation slashed to $150 million.

Common shareholders, including early employees, are set to be on the losing end, with a source telling Variety that they will only get 17% of any exit proceeds that exceed the new investment, plus the $70 million SoundCloud raised from Twitter last year. In essence, this means that some investors will see their equity wiped out if SoundCloud doesn’t manage to sell for more than $240 million at some point down the line. Shareholders will have to agree to the reorganization by the end of Friday, but our source said that it’s basically a done deal.

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The Raine Group investment is said to be driven by Raine Group partner Fred Davis, who previously advised media companies like Spotify, Shazam, Hulu, YouTube and Rhapsody. Earlier in his career, Davis was an EVP at Emi Music.

SoundCloud tried to enter the music subscription market with the debut of SoundCloud Go last year, but struggled to compete with the likes of Spotify and Apple Music. The company’s financial woes became apparent when it fired 40 percent of its staff last month.

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