Brightcove raises a trove...

Quite a week for Brightcove, the online video publication and distribution provider backed by Jeremy Allaire. First, Senator Barack Obama used the Brightcove platform to announce an exploratory committee for a potential 2008 presidential run. Then today, the company announced a whopping $59.5mm Series C round.

This deal strikes a cord for several reasons:

• The size of the round is notable...total paid-in capital is now north of $81.2mm.  Bambi Francisco reports the deal carried a $220mm post-money valuation. This may seem like a huge amount of money for such a young company, but it may be necessitated by the increasingly competitive market Brightcove competes in.  With more than 60 online video sites in play, and with the culmination of GooTube, Allaire and his team are making the bet it's "now or never."

From Jeremy Allaire's blog: If the Google/YouTube deal was any indication, 2007 is clearly going to be a major year for online video, and also a year of consolidation as many of the hundreds of online video startups seek a place in the new ecosystem.  We also expect 2007 to be a year where established media companies make more bets, and continue to partner with leaders they can trust and who are well aligned with their desire to maintain choice and control over how their video is used online, while also empowering consumers.

• A diverse, non-traditional group of investors is piling in...I fundamentally believe we're in the early stages of the blurring of the lines among traditional alternative investment classes; and today's news reinforces that hypothesis. AllianceBernstein, a publicly-traded megacap that managed more than $650 billion led the round. Maverick Capital, the $10B hedge fund participated, as did buyout firm Brookside Capital.

Related Posts:

• Youtube, Metube, Everyonetube
• Brightcove's Latest Publicity...Missing the mark somewhat?
• AOL invests in Brightcove...what about Kontiki?
• Light the 'tiki Torches...Verisign nabs Kontiki

Note: At the time of this writing I, and/or funds I maintain discretionary control over did not maintain a position (long or short) in AB, VRSN or any other company mentioned.  

 

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Comments

[gz]

Much more of a platform approach then YouTube so I think much better shot at being an important part of New Media. More over on NextBlitz blog as well.

[Mark Crofton]

While some may see Brightcove as a YouTube "me too," I believe there might be room for a more serious or adult (not in THAT sense of the word) video sharing service. If I'm a Fortune 500 company I may feel more comfortable placing my video and brand on a service that is not the favorite among MySpace users.