Verivue's Coffers Swell by $20M
Verivue Inc. says it really doesn't need more cash, but Jim Dolce's new startup will gladly take it when investors insist on throwing a few million more on the pile.
Verivue, a company that's developed a new line of Flash-based video switches, confirmed it has raised $20 million in a third round of funding, led by a mix of new investors and existing stakeholders from the company's previous fund-raising efforts.
The company isn't saying who joined the latest round, but Comcast Interactive Capital , Matrix Partners , North Bridge Venture Partners , Accel Partners , and Arris Group Inc. (Nasdaq: ARRS) participated in Verivue's second round, which brought in $40 million. (See Verivue Surfaces With Comcast Backing .)
UPDATE: A Verivue official confirmed that Sigma Partners Menlo Park joined the latest round as a new investor. The latest infusion extends Verivue's raised funds past the $85 million mark. A company spokesman said management hadn't been seeking additional funds, but the third round group approached the vendor about the idea. The parties agreed to the same terms and conditions set down for the Series B round, which took place last year before the markets went haywire.
Including the new investment, Verivue has about $50 million in the bank, meaning it has burned through about $35 million since its inception in November 2006. The company has yet to announce any deals for its MDX 9000 Series Media Distribution Switch family, but it's "in several early stages of deployments with customers," a spokesman says. (See Verivue Flips Smaller Flash Switch.)
Verivue has already forged partnerships to help it gain footholds in North America and Europe. It has teamed up with Arris Group Inc. (Nasdaq: ARRS), which is integrating Verivue's video switches with its larger digital video platform, and which has the rights to sell them worldwide. Verivue is also looking to make some waves in Europe via a separate integration agreement with Dutch video software firm eventIS Group B.V., which is being acquired by SeaChange International Inc. (Nasdaq: SEAC) for $36.5 million. (See Arris Pumps Up Video With Dolce's Verivue , Verivue, eventIS Integrate Servers & Software , Friends & Enemies , and SeaChange Goes Dutch for VoD Smarts.)
— Jeff Baumgartner, Site Editor, Cable Digital News
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