Broadbus nets $25 M in 'B' round
Video server startup Broadbus Technologies Inc. said it raised $25 million in an oversubscribed series B round of financing led by Star Ventures. Existing investors Battery Ventures, Charles River Ventures, Comcast Interactive Capital, Infineon Ventures and Wolf Ventures also participated in the round.
Massachusetts-based Broadbus has raised almost $40 million so far. "This fully funds the company based on our current plan," said Broadbus President Jeffrey Binder.
He said Broadbus has reached the revenue-generating stage, having already deployed its servers to a number of "top five" MSOs. "It's going to be a few months before we can make any [customer announcements], but we're in the hunt for big orders in 2004," Binder said.
Broadbus will use the new funds to add functionality to its video server products and to drive costs down. The company takes a different approach to server architectures, using DRAM instead of spinning disks to store and stream on-demand content.
Broadbus' competitors have long been critical of the bigger price tag attached to the RAM-based approach. Binder counters, though, that his company helps operators trim costs because the Broadbus architecture reduces hard drive requirements, particularly in large VOD deployments.
Broadbus also plans to use the funds to beef up its sales and marketing efforts. Though many MSOs have already deployed VOD in many markets, a window is opening up for Broadbus as operators move past deployments based on first- and second-generation technology, Binder said.
Broadbus, he added, has also integrated with a variety of backoffice systems, including those from N2 Broadband, Motorola Broadband and Scientific-Atlanta. Binder declined to name others, but it's expected that Broadbus is also busily integrating with backoffice systems from incumbent VOD server/system vendors such as Concurrent Computer Corp., nCUBE Corp. and SeaChange International.
"There are others [integrations] we are looking at, driven by customer requirements," Binder said.