Groove Mobile landed $8.5 million in new financing. The company plans to use the funds to advance uptake of its mobile music service.

Groove Mobile's technology enables users to browse, preview, download and virally share songs from a host of artists.

At the close of 2005, Groove Mobile was busy rounding out its client roster. Telecom New Zealand turned to the company to facilitate the launch of its Telecom Music Store, as did Sprint Nextel for its Music Store. The launch of Sprint's service marked the first time a U.S. wireless carrier enabled subscribers to capture music right from their handset, using over-the-air technology.
Other Groove Mobile customers include Orange, Telenor, Eurotel, PTC, T-Mobile Hungary and Sing-Tel. The company's technology is enabling the delivery of mobile music in the United States, Europe and Asia.

New investor Egan-Managed Capital led the financing round. The venture capital firm was attracted to Groove Mobile for its strong management team and its existing footprint, Egan-Managed Capital partner Travis Connors says.

To date, Groove Mobile has raised more than $20 million. Charles River Ventures, Kodiak Venture Partners and Star Ventures also have made investments in the company.