Posts Tagged ‘Norwest Venture Partners’

Elemental Technologies Closes $14.5 Million Series D Funding Round, Adds Telstra and Sky as Investors

Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results | Posted by Joe Zaller
Dec 22 2014

Elemental Technologies announced that it has closed a $15m series D funding round, led by led by Australian telco giant, Telstra, who in August 2014 acquired online video platform provider Ooyala for $360m.

The company says it will use the funds to “accelerate worldwide growth and expand its suite of software-defined video (SDV) solutions to support the whole of the IP video delivery chain.”

Joining Telstra in the series D funding is leading European pay TV and broadband provider BSkyB, along with existing Elemental investors, General Catalyst Partners, Norwest Venture Partners and Voyager Capital; also participated in the funding round. Missing from this list is Disney-backed Steamboat ventures, which participated in Elemental’s previous investment rounds.

The deal brings the total amount of funding raised by Elemental to just under $45m. In May 2012 Elemental announced it closed a $13m fundraising round led by Norwest Venture Partners (NVP).   In 2010, the company closed a $7.5 funding round, led by General Catalyst, Voyager Capital and Steamboat Ventures.

Elemental did not provide details on the company’s valuation following the deal, what percentage of the company is now owned by Telstra and Sky, or whether the company’s existing investors have maintained their same percentage ownership after the latest deal.

However, a press release from Sky, indicates the pay TV platform has invested $4m into the company though its “ongoing program of investing in innovative startups” that to date include cross-platform network Whistle Sports; online video aggregator Pluto.TV, and US ad tech firm Sharethrough.

According to published reports, Elemental had 142 employees and revenue of $32.3m for the full year 2013, and had grown top-line revenue by 887% over the previous three years.  The company says its products have been adopted by more than 600 customers in more than 55 countries.

Although there are no financial metrics available for 2014, during an April 2014 panel of vendor CEOs that I moderated as part of Shifting Media Economics: Impact on Strategy, Finance, and Technology, which is co-produced by Devoncroft and the NAB Show, Elemental founder and CEO Sam Blackman told an audience of nearly 400 industry executives that he expected his company to achieve growth of more than 50% this year.

The fact that very large end-users are investing in Elemental is an interesting development.

According to a statement, Telstra has started to roll out 4G LTE services on new 700MHz spectrum to deliver ultra-fast mobile data speeds, and the telco plans to “leverage the entire Elemental product line, with a specific focus on Elemental Delta for its next-generation content delivery services.”

“With its software-defined video processing and delivery solutions, Elemental is at the forefront of video delivery and the evolution of content monetization. Our investment in Elemental will enable Telstra to create value for our global media customers,” said Mark Sherman, Global Enterprise and Services Managing Director, Ventures, for Telstra. “Elemental’s unique offer provides the flexibility and scalability to ensure a great customer experience despite high network traffic demands.”

Sky says that is investment in Elemental “will give the company valuable access to an entertainment company that is at the forefront of multi-platform, multi-device video – delivering OTT content at scale to millions of customers.”

Emma Lloyd, Sky’s Director of Corporate Business Development and Startup investments, said “Internet-delivered video is fundamental to Sky’s business and will continue to grow in importance as more and more customers access content across multiple screens and devices.  By investing in Elemental, we not only strengthen our existing commercial partnership, but we have the opportunity to share perspectives and insight into how the combination of new technologies and changing customer demands will shape the video landscape of the future.”

Elemental’s take on the deal was outlined by Blackman in a blog post published today, which says:

“As with any financing round, the timing and the deal need to be right. But fundamentally, it boils down to a shared belief that we can all evolve faster if we’re strategically aligned around a core goal of transforming the media landscape. In many ways, 2015 will mark an inflection point for the video industry as content creators and aggregators deliver ever-more innovative multiscreen services. Furthermore, as the number of video-capable IP devices heads to 15 billion according to Ericsson, next-generation software-defined video infrastructure is required to support gigascale video distribution

With an industry inflection point upon us, this alignment among market leaders will speed the transition to software-defined video architectures. For Telstra, Elemental’s video solutions are fundamental to its next-generation network strategy, which it is rapidly evolving to software, virtualization and cloud-based workflows. As our shared news today indicates, Telstra will use Elemental products across its large portfolio of media properties. For Sky, Elemental solutions support its current multiscreen OTT Sky Go properties, and as SDV architectures continue to mature, we believe there will be additional opportunities to collaborate in the future.

Together, Telstra, Sky and Elemental can further the progress towards a shared vision of software-defined video solutions that are highly scalable, flexible and upgradable and which lower the barriers to bringing content to any device.”

 

Today’s Elemental announcement is the latest in a series of deals related to online video and transcoding. As broadcasters and media companies scramble to deploy multi-screen services, transcoding is seen by many as a key technology.  As a result, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals and related-financial news:

 

 

  • In April 2014, Imagine Communications acquired Digital Rapids for an undisclosed amount

 

  • In April 2014, Dalet acquired Amberfin for an undisclosed amount

 

  • In January 2013, Amazon unveiled its “Amazon Elastic Transcoder.” Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost-effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”

 

  • In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012

 

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

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Related Content:

Press Release: Elemental Fuels Global Ambitions with $14.5M in Telstra-led Financing

Sky Press Release: Sky Invests in Multiscreen Video Leader Elemental

Telstra Buys Online Video Platform Ooyala for $360 Million Equity Value

Ooyala Receives $43 Million Investment From Telstra To Accelerate Adoption of Its Market-leading Video Analytics

Telestream Says Transcoding and Workflow Revenue Increased by 40 Percent Last Year

Elemental Technologies Says Revenue Increased by 50 Percent in 2013

Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

Harmonic Moves Transcoding Technology to the Cloud, Launches AWS-Based Service

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

broadcast industry trends, Broadcast technology vendor financials, Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Feb 06 2013

The revenue of video transcoding technology supplier Elemental Technologies more than doubled in 2012 versus 2011, according to information supplied to Forbes magazine by the company.

Elemental was featured in a Forbes list of the “100 Most Promising Privately-Held, High-Growth Companies in the United States,” coming in at #23 on the list. Elemental also appeared on the Forbes list last year, coming in at #54.  The 30-place jump in the Forbes rankings was the largest by any company.

Forbes says that Elemental posted full year 2012 revenue of $21 million, up 106% versus the previous year.  No other financial metrics such as profitability, gross margins, operating margins, etc., were provided.  However, in a May 2012 profile by technology website GigaOm, Elemental’s founder and CEO Sam Blackman, said that company was not yet profitable, and had revenue “in the “eight-digits” [in 2011] after having sales in the seven digits during 2009 and 2010.”

Elemental attributed its year-over-year revenue growth to continuing to satisfy the video processing needs of major media companies, double-digit growth in the OTT video market, and strong consumer adoption of tablets and other mobile video devices.

The company also said it more than doubled its customer base in 2012, and now serves 250 media and entertainment brands across nearly 40 countries.  Elemental is apparently taking on staff to meet increasing customer demand.  According to Forbes, the company currently has 102 employees, up from 70 employees in May 2012.

In May 2012, Elemental closed a $13m fundraising round led by Norwest Venture Partners, which brought 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 the May 2012 fundraising round.

As broadcasters and media companies scramble to deploy multi-screen services, video transcoding has become a hot space, and Elemental’s impressive year-over-year growth is certainly a testament to this phenomenon.

As a result of the growth in this technology area, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals:

 

  • In January 2013, Amazon unveiled its “Amazon Elastic Transcoder.” Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”

 

  • In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

 

 

Related Content:

Forbes: Americas Most Promising

Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

GigaOm Article: Elemental gets $13M to sell arms in the online video fight

Press Release: Elemental Secures $13M to Ignite Business Expansion

Elemental Technologies: SEC Filing Disclosing 2010 Fundraising Round

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

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© Devoncroft Partners. All Rights Reserved.

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Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

broadcast industry technology trends, Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
May 08 2012

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:

 

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Related Content:

Press Release: Elemental Secures $13M to Ignite Business Expansion  

GigaOM Article:  Elemental gets $13M to sell arms in the online video fight

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

2010 Elemental SEC Form D Filing: – details previous funding round

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

Elemental Technologies: SEC Filing Disclosing 2010 Fundraising Round

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© Devoncroft Partners. All Rights Reserved.

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