Video services

Multi-Screen TV Startup Bags $13M

Elemental Technologies Inc. (ETI) , a startup that makes processing and encoding software for multi-screen video, has raised $13 million in a "C" round that brings its total funding to $29.6 million. (See Elemental C Round Nets $13M.)

Company CEO Sam Blackman says the company, founded in 2006, will use the new funds to fuel its international expansion and for the development of new edge streaming products. Its current lineup of software handles core encoding, transcoding and packaging for live and on-demand video destined for playout on PCs, tablets, smartphones and other broadband-connected devices.

Among its bigger customers, Comcast Corp. (Nasdaq: CMCSA, CMCSK) and HBO use Elemental for their respective TV Everywhere services, and Avail-TVN has tapped Elemental to process and package live, linear video feeds for an AnyPlay platform that targets Tier 2/3 MSOs and telcos. Dell Technologies (Nasdaq: DELL) is also using Elemental's video processing engine alongside EdgeCast Networks Inc. 's content delivery network (CDN) software to help make up the Dell Deliver platform for service providers.

Elemental's already made some international progress, with about 30 percent of revenues coming from outside the U.S. It recently opened a Hong Kong office to go after the Asia/Pacific region.

On Tuesday, Elemental also appointed Integra Telecom Inc. CEO (and a former Level 3 Communications Inc. (NYSE: LVLT) founder and COO) Kevin O'Hara as company chairman. (See Source: O'Hara Victim of Level 3 Power Struggle .)

Why this matters
Blackman says Elemental still has plenty of cash in the bank from its previous $7.5 million "B" round, but the new infusion will help the company expand internationally and augment a war chest it will need to stoke its ongoing battles with competitors such as Cisco Systems Inc. (Nasdaq: CSCO) (via its purchase of Inlet Technologies Inc.), Harmonic Inc. (Nasdaq: HLIT), Envivio Inc. (NASDAQ: ENVI) and RGB Networks Inc.

Elemental's not profitable yet, but Blackman says the vendor will turn the corner soon as it wraps up spending to beef up its international sales and marketing teams.

For more
— Jeff Baumgartner, Site Editor, Light Reading Cable

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