Broadband Video Platform Provider, Brightcove, Raises $12 Million in Series D Funding Round

--Has Raised $99 Million To Date, Is Expected to Go Public This Year or Next

Broadband video platform provider, Brightcove, has confirmed a report by Jessica Vascellaro in Monday's Wall Street Journal that it has raised $12 million in new funding. According to the company, the Series D funding round was led by Accel Partners and General Catalyst, and saw the participation of other existing investors, including AOL, Hearst, AllianceBernstein, Maverick, and Brookside Capital. It says it plans to use the new funds to "expand the company's cash balance sheet and increase investments in key growth initiatives, including expansion in Asia and Europe, the roll-out of new product lines like Brightcove Express on a worldwide basis, R&D innovation, and possible M&A activity."

Brightcove, which has raised $99 million to date, operates in an increasingly competitive space, where its rivals include Comcast-owned thePlatform, Ooyala (which it recently accused of having "crossed an ethical line that could have harmed customers and the industry"--see the article published on itvt.com, April 1st), and Episodic (which has just been acquired by Google--see the article published on itvt.com, April 5th).

Accel partner, Jim Breyer, told the Wall Street Journal that Brightcove had needed more funding than initially expected in order to build out its video-serving infrastructure, and that the company expects to go public within the next year or two. The Journal also reported that the company's founder and CEO, Jeremy Allaire, told it that Brightcove's revenues rose 50% between 2008 and 2009; that the company claims to have been cash-flow positive last year; and that "a person familiar with the matter" told it that the company's sales are expected to be around $50 million this year, and that the new financing means that it will have around $36 million in cash at its disposal.

In related news: In a posting on its Web site, Monday, thePlatform announced that it is hiring Flash application developers. According to the company, "the position offers a tremendous opportunity to influence the next generation of interactive media applications" and "provides unlimited creativity in bringing the latest Flash techniques to market in a large-scale consumer setting."

Region: 
North America