Veoh scores additional funding round
Veoh Networks has received an additional round of funding, led by Intel Capital – the global investment arm of Intel Corp. – and joined by Adobe Systems and Gordon Crawford, SVP of Capital Research Global Investors.
The funding from these new investors – and the support from existing investors Shelter Capital, Spark Capital, Goldman Sachs, Michael Eisner’s Tornante Co., Time Warner Investments and Jonathan Dolgen – totals $30 million.
Veoh said that it will use the capital to further enhance its viewer offerings, strengthen its lead in video discovery, expand its advertising products and targeting capabilities, and extend its services across multiple platforms.
“The world of Internet television has changed dramatically in the past year,” said Steve Mitgang, CEO of Veoh. “No longer limited to short-form video sharing, viewers are now tuning in online to watch long-form, quality entertainment. With a near-infinite universe of content now available online, the future of our industry will be led by those who help viewers easily discover new things they like to watch, enable portability, and provide effective targeting across all types of video audiences and all forms and lengths of content. Veoh is very happy to have the support of the most respected and innovative minds in media and technology as we drive forward on all of those fronts.”
"The online video space is primed for market expansion, and technology will play an increasingly larger role in how we entertain ourselves,” said Lucy McQuilken, investment manager for Intel Capital. “We are encouraged by Veoh’s consumer adoption and believe that the technical capability Veoh provides that enables consumers to watch video while online or offline is an important factor in driving media consumption across the PC, TV and mobile.”
In the past year, Veoh has launched a proprietary behavioral ad-targeting engine based on video consumption and has secured distribution relationships with major content owners, including CBS, MTV Networks and FEARNet. Veoh ended the first quarter of 2008 with more than 28 million viewers who spend an average of more than 100 minutes per month on Veoh.
“As the online video industry evolves, only a handful of companies will succeed in capturing a loyal viewer base and building a viable business around it,” said Anton Denissov, broadband video and pay television analyst for the Yankee Group. "The path to success for these companies lies in engaging viewers to build them into a loyal audience and then helping advertisers connect with them in a non-intrusive way."
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