VEOH NETWORKS SECURES $30 MILLION FROM SILICON VALLEY HEAVYWEIGHTS
June 3, 2008
LOS ANGELES, CA (June 3, 2008) – Veoh Networks (www.veoh.com), the world’s most comprehensive Internet Television service, today announced that it has received an additional round of funding led by Intel Capital, the global investment arm of Intel Corporation, and joined by Adobe Systems Incorporated and Gordon Crawford, senior vice president of Capital Research Global Investors. The funding from these new investors -- with support from existing investors Shelter Capital, Spark Capital, Goldman Sachs, Michael Eisner’s Tornante Company, Time Warner Investments and Jonathan Dolgen -- totals $30 million. Veoh will use the capital to further enhance its viewer offerings, strengthen its lead in video discovery, expand its advertising products and targeting capabilities, and extend its services across multiple platforms.
“The world of Internet television has changed dramatically in the past year. No longer limited to short-form video sharing, viewers are now tuning in online to watch long-form, quality entertainment,” said Steve Mitgang, CEO of Veoh Networks. “With a near-infinite universe of content now available online, the future of our industry will be led by those who help viewers easily discover new things they like to watch, enable portability, and provide effective targeting across all types of video audiences and all forms and lengths of content. Veoh is very happy to have the support of the most respected and innovative minds in media and technology as we drive forward on all of those fronts.”
"The online video space is primed for market expansion, and technology will play an increasingly larger role in how we entertain ourselves,” said Lucy McQuilken, investment manager, Intel Capital. “We are encouraged by Veoh’s consumer adoption and believe that the technical capability Veoh provides that enables consumers to watch video while online or offline is an important factor in driving media consumption across the PC, TV and mobile.”
Over the last twelve months, Veoh successfully established itself as one of the top global Internet television services. The company introduced multiple new community and social features for viewers, launched a proprietary behavioral ad targeting engine based on video consumption, and secured distribution relationships with major content owners including CBS, Viacom’s MTV Networks and FEARNet. Veoh ended the first quarter of 2008 with a full roster of brand-name advertisers and more than 28 million highly engaged viewers who spend an average of more than 100 minutes per month on Veoh.
“As the online video industry evolves, only a handful of companies will succeed in capturing a loyal viewer base and building a viable business around it,” said Anton Denissov, Broadband Video & Pay Television Analyst, Yankee Group. "The path to success for these companies lies in engaging viewers to build them into a loyal audience and then helping advertisers connect with them in a non-intrusive way."
Named one of AdWeek’s Top 10 Digital Hotlist sites in 2007, Veoh Networks is an innovative Internet Television company that delivers broadcast-quality video programming via the Internet.
The Veoh Networks portfolio includes Veoh.com, one of the most popular video hosting services on the Internet, and VeohTV, a free downloadable application that turns online video into Internet Television. Veoh.com has more than 100,000 content publishers - from CBS, Viacom’s MTV Networks, FEARNet and Lions Gate to thousands of independent filmmakers and content producers - and currently attracts over 28 million unique users per month. For advertisers, Veoh offers compelling ways of engaging with a targeted audience and measuring performance of their ad buys. Veoh Networks is a privately held company that is backed by leading technology and media investors, including Shelter Capital Partners, Spark Capital, Michael Eisner’s Tornante Company, Goldman Sachs, Time Warner Inc., Intel Capital, Adobe Systems Incorporated, Gordon Crawford, Tom Freston and Jonathan Dolgen. The company’s principal offices are in Los Angeles and San Diego, California.
Intel Capital, Intel's global investment organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than US$7.5 billion in approximately 1,000 companies in 45 countries. In that timeframe, 168 portfolio companies have gone public on various exchanges around the world and 212 were acquired or participated in a merger. In 2007, Intel Capital invested about US$639 million in 166 deals with approximately 37 percent of funds invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.
Adobe Systems Incorporated is committed to supporting innovation throughout its ecosystem. As part of that commitment, Adobe has a history making a select few venture capital investments in promising private companies, and continues that tradition today. Gordon Crawford is a Senior Vice President and a Director of Capital Research and Management Company with portfolio manager responsibilities. Mr. Crawford joined the Capital organization in 1971 and covered the media/entertainment and insurance industries for nearly 34 years as an analyst. He has been selected to Institutional Investor's "Best of the Buy Side" list ten times since 1979 for his coverage of the entertainment industry. Gordy received his MBA from Darden School and bachelor's degree from Wesleyan University. He is based in the Los Angeles office.
Shelter Capital Partners is a Southern California based private investment fund principally focused on investing in early stage technology-enabled companies in the media, wireless/communication, and enterprise software industries. Shelter founders' involvements with media companies such as New World Communications, Turner Broadcasting and Telemundo and technology leaders Scopus Technologies and Akamai Technologies lie at the core of its mission. Shelter’s support of Veoh dates back to the company’s early financing in 2005.
Spark Capital is focused on the conflux of the media, entertainment and technology industries. Spark teams with entrepreneurs to build businesses that disrupt and transform traditional media and entertainment markets with revolutionary technology. Spark's General Partners are successful natives of the media and technology industries having held senior positions at Sony Entertainment, Blockbuster, Matsushita, Lion's Gate, and Turner Broadcasting. Spark’s experience in Venture Capital includes a proven track record of identifying and building market leading companies such as: Aether Systems, Akamai, BigBand, Broadbus, College Sports Television, Qtera, and the Platform. To learn more, visit www.sparkcapital.com.
Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
Michael Eisner’s Tornante Company, founded in 2005 is a privately held company that makes investments in and incubates companies and opportunities in the media and entertainment space. Through The Tornante Company, Eisner created Vuguru, a new media studio that produces world class content for the internet and emerging digital platforms. In October 2007, The Tornante Company and Madison Dearborn Partners, LLC. acquired The Topps Company, Inc., a leading creator and marketer of sports and related cards, entertainment products, and distinctive confectionery items.
Time Warner Investments group targets non-control strategic investments that have a clear impact on Time Warner’s divisional operations and directly enhance the Company’s ability to meet specific strategic goals. Time Warner Inc. is a leading media and entertainment company, whose businesses include interactive services, cable systems, filmed entertainment, television networks and publishing.
Tom Freston’s Firefly3 LLC, a private company that invests and consults in the media and entertainment businesses. Tom Freston served as President and Chief Executive Officer of Viacom from January 1, 2006 to September 5, 2006. Previously, he was Co-President and Co-Chief Operating Officer of the former Viacom Inc., a predecessor of the Company, since June 2004. Prior to that, Mr. Freston was Chairman and Chief Executive Officer of MTV Networks since 1987. Under his leadership, MTV Networks grew to reach 164 countries through 100 channels worldwide, including MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, TV Land, Spike TV and CMT, among many others.
Jonathan Dolgen has been Senior Advisor to Viacom, Inc. since July 2004. Since July 2004, Mr. Dolgen has also been a private investor and since September 2004, Mr. Dolgen has been a principal of Wood River Ventures, LLC, a private start-up entity that is seeking investment and other opportunities primarily in the media sector. Since October 2004 he has served as a director of Charter Communications, Inc and since August 2005, has served as a director of Expedia, Inc.
Mr. Dolgen served as Chairman of the Viacom Entertainment Group from April, 1994 until July of 2004. Mr. Dolgen began his career in the entertainment industry in 1976, and prior to joining the Viacom Entertainment Group, served in various executive positions at Columbia Pictures Industries, Inc., Twentieth Century Fox and Fox, Inc. and Sony Pictures Entertainment.
Gaude Lydia Paez
Dan Klores Communications