Video transcoding specialist Elemental Technologies announced that it has closed a $13m fundraising round led by Norwest Venture Partners (NVP).
This brings the total amount of funding raised by Elemental to just under $30m. In 2010, the company closed a $7.5 funding round, led by General Catalyst, Voyager Capital and Steamboat Ventures, who also participated in this latest fundraising round.
According to a GigaOM article, five-and-a half-year-old Elemental currently has 70 employees, revenue in “the eight-digits,” and is not yet profitable.
Elemental says it will use the new funding to invest in business expansion.
“Elemental’s ascendance in the IP video delivery market over the last two years has been well-documented and something we have watched closely,” said Robert Abbott, general partner at NVP. “When combined with the clear growth trajectory of the over-the-top video and TV Everywhere markets and its deep technology differentiation, we believe now is the right time to invest in Elemental.”
This is the latest in a series of M&A and financing activity in the transcoding space as companies try to position themselves in the multi-platform video management and delivery market.
Previous transcoding-related deals include:
- Wohler acquired transcoding vendor RadiantGrid for an undisclosed amount in April 2012
- Envivio revived its plans for go public in a Goldman Sachs-led IPO
- Envivio closed a $16.5m funding round in January 2012, bringing the total raised to $95.1m
- PE firm Thoma Bravo bought out Telestream in December 2011
- Telestream bought fellow transcoding vendor Anystream in September 2011
- Cisco bought Inlet Technologies for $95m in February 2011
- Elemental Technologies closed a $7.5m fundraising round in 2010, bringing the total raised to more than $14m
- RGB Networks bought transcoding vendor Ripcode in 2010
Press Release: Elemental Secures $13M to Ignite Business Expansion
GigaOM Article: Elemental gets $13M to sell arms in the online video fight
2010 Elemental SEC Form D Filing: – details previous funding round
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