Posts for 'Investments'

In Q4 '09, private U.S. broadband and mobile video-related companies raised at least $150.1 million according to company news releases I received and public sources I track. At least 21 private companies disclosed financings in the quarter, ranging in size from $1 million each for Howcast and Mochila to $25 million each for Dailymotion and Delivery Agent. Vevo's raise from Abu Dhabi Media Company, which was not disclosed, may well have exceeded these. Companies across the ecosystem, including services, chips, advertising, DRM, content, analytics and platforms were represented.

The quarterly total was the second best of 2009, following Q3 ($180.9 million). When added to Q1 ($74.8 million) and Q2 ($64 million), it brings the 2009 total to just under $470 million, raised by 64 companies. The relative strength of investments in the sector underscores investor enthusiasm broadband and mobile video despite the ongoing recession and credit squeeze. (Note the quarterly total doesn't include the $2 billion+ private placements that Clearwire, the 4G network provider, announced in Q4 or the $40 million raise that Chinese portal Youku just announced yesterday, nor any other international deals).

In addition to private financings, there were noteworthy deals announced in Q4 as well. At the top of the list is of course Comcast-NBCU, valued at $30 billion. Another significant deal announced in the quarter was Cisco's acquisition of Tandberg, a Norwegian videoconferencing company for $3.4 billion. On a smaller scale, there was Limelight's plan to acquire rich media ad firm EyeWonder for $110 million just yesterday, AEG's acquisition of webcaster Incited Media, Adconion buying the remains of Joost and KIT Digital's rollup of competitors The FeedRoom and Nunet.

Following are the investments that I tracked during the quarter, the date disclosed and new investors identified if applicable. Links are provided to the companies' press releases, or to relevant media coverage if none could be found (note that I haven't verified media coverage with companies themselves). If I've missed anything or you find an inaccuracy, please post a comment.

VMIX ($2M) Oct 1 - Existing investors

Delivery Agent ($25M) Oct 1 - Focus Ventures, existing investors

Howcast ($1M) Oct 5 - Undisclosed investors

Visible Measures (Undisclosed) Oct 6 - DAG Ventures

Personal Web Systems ($1.2M) Oct 7 - Undisclosed investors

ViVu ($3M) Oct 13 - Inventus Capital Partners, DFJ, Quest Ventures

Ooyala ($10M) Oct 13 - Rembrandt Venture Partners, existing investors

Vevo (Undisclosed) Oct 19 - Abu Dhabi Media Company

Dailymotion ($25M) - Oct 22 - French Sovereign Fund, existing investors

Dilithium Networks ($10.9M) - Oct 27 - Existing investors

Vdopia ($4M) Oct 28 - Nexus Venture Partners

ScanScout ($8.5M) - Oct 28 - EDB Investments

Sezmi ($25M) Nov 16 - Existing investors

Zorap ($1.4M) Dec 1 - Angel investors

VisibleGains ($2M) Dec 2 - Existing investors

Mochila ($1M) Dec 7 - Existing investors

Widevine ($15M) Dec 14 - Liberty Global, Samsung

Cloud Engines ($3M) Dec 14 - Undisclosed

Ace Metrix ($6M) Dec 16 - Leapfrog Ventures, existing investors

Jinni ($1.6M) Dec 16 - DFJ Tamir Fishman Ventures

Quantenna ($4.5M) Dec 17 - Existing investors

The quarterly total blew away each of the past 3 quarters I've tracked (Q2 '09 - $64M, Q1 '09 - $74.8M and Q4 '08 - $78M. In summary, over the last 4 quarters, at least 47 different broadband and mobile video-related companies have raised a total of at least $397M, a stellar performance under any circumstances, but all the more so given the down economy, frozen credit markets and nearly closed window for initial public offerings.

In addition to the venture financings, there were at least 3 video-related acquisitions announced in the quarter including Adobe-Omniture for $1.8B (noteworthy due to Flash's leading market position), Google-On2 Technologies for $106.5M (being challenged by On2 shareholders) and DivX-AnySource for $15M. Elsewhere during the quarter, KIT Digital began trading on the NASDAQ, and Paltalk bought back $6M of its shares from investor Softbank Capital Partners. Lastly, Calix raised $100M, however I haven't included them on the list below because their broadband equipment is used for much more than just video delivery.

Q3 '09 activity underscores investor enthusiasm for the opportunities broadband and mobile video-related companies are opening up and the value chain disruption many are causing. The financing momentum also puts an exclamation mark on my post from last week, "Why the FCC's Net Neutrality Plan Should Go Nowhere." Industry investors and entrepreneurs very clearly do not need the government issuing new Internet regulations to give them confidence to do deals.