Transcoding start-up pulls in $2M
A start-up that provides video format encoding as a service has secured another $2 million to finance an expansion of its operations.
Current investors joining Metamorphic Ventures in the round are Patrick Condon, co-founder of Rackspace and active Angel investor; John Engates, CTO of Rackspace; and Dave Morgan, CEO of Simulmedia and founder of Tacoda and Real Media. Encoding.com's systems are integrated with Rackspace's.
Encoding.com claims more than 1,700 customers, including MTV and PBS NewsHour.
In addition to providing encoding/transcoding for corporate customers on a software-as-a-service (SaaS) basis, the company also has in beta a new Web-based service called Vid.ly.
Anyone can use Vid.ly to upload an individual video and have it automatically transcoded into multiple different formats suitable for playback on any number of devices. (Currently, Vid.ly transcodes into 14 different formats.) The service automatically assigns a short URL for the video.
"We were thrilled to see 500 percent growth in monthly recurring revenues in 2010 and have been blown away with the initial market response for our new Vid.ly service from leading media brands, agencies and application developers," said Marc Michel, managing partner at Metamorphic VC and an Encoding.com board member. "By ensuring that videos can be viewed on all mobile devices and browsers in the market, Encoding.com is solving a critical pain point in the rapidly expanding broadband video services space."
"It's an exciting time for Encoding.com. We continue to execute well on our mission to be the shovel in the broadband video gold rush. We're experiencing an accelerating demand for our encoding services from large and small companies that recognize the proven value of cloud-based video encoding services versus managing expensive and inflexible on-premises solutions," said Jeff Malkin, president of Encoding.com. "This funding will help us continue to lead innovation in the video encoding services space, while enabling us to scale our customer acquisition efforts across big media and entertainment, agencies, online education, video platforms and video application developers worldwide."