Legendary Silicon Valley investor Kleiner Perkins is now a shareholder of one of the world’s hottest technology companies, Spotify. Even though the investment amounted to $50 million, Kleiner Perkins is only holding less than 5 percent of the online music streaming service, and this investment will push the value of Spotify to $1 billion. As a celebrated investor, Kleiner Perkins Claufield & Beyers has made investments in classics like Amazon and Google.

The investment made by Kleiner Perkins is significant since no one else funded the round besides Digital Sky Technologies Global (DST),a high-profile Russian investor. All in all, the funding amounted to $100 million. The involvement of Kleiner Perkins in this round is reportedly credited to Mary Meeker, a former Morgan Stanley analyst, and William “Bing” Gordon, co-founder of Electronic Arts.

The financing will be used to facilitate geographical expansion, as well as development of new service offerings. Aside from the newcomers, Spotify’s existing investors include 82-year-old billionaire Li Ka Shing and London-based venture capital firm Wellington Partners.

“More than 10m people across European countries use its advertising-supported service to listen to a catalogue of 10m tracks for free, on-demand over the internet. But it has attracted fewer than 1m paying subscribers to its mobile and ad-free premium service, a conversion rate that concerns some record labels investors in the company. Concern over its business model and the probable returns for artists and labels has held up a planned launch in the US for more than a year, although it is now starting to secure contracts with US labels,” says The Financial Times describing the DST investment on Spotify.

Amazingly, today is the birthday of Spotify’s co-founder Daniel Ek. He is still under 30; so young to be steering the progress of a billion-dollar company, but nothing out of the ordinary for today’s tech scene.

It has been rumored that Spotify will be undergoing some changes,  limiting its free listening hours and charging premium rates over the coming months. Spotify is the first company of its kind to hit the iPhone, and digging up their sales history, it was found out that they have a horrifying loss of $26.5 billion dollars back in 2009. There has also been buzz that Spotify will be acquired by Apple, which the UK music streaming service dismissed. It’s currently not available in the US, however, there’s still hope that shines from afar.

Juniper Networks predicted that mobile music revenue will escalate to a mammoth $5 billion annually by 2015, so it’s not surprising why everyone wants to position themselves nicely on the trend. Verizon, for example, is refocusing on the V Cast for Android  after its diversion in the height of the iPhone sales. The music app will bring together full song downloads, ringtones and ringbacks in a single app like never before in the digital music industry.