Category Archives: Khosla Ventures

YuMe, a broadband video advertising network, has taken $16M so far to tackle the video advertising

Yesterday we have covered BlackArrow, which offers an advertising management platform for video, allowing web sites to monitor their inventory while enabling advertisers to insert ads on-the-fly. They have taken $12M and are somehow relying on the cable companies to do its business. The company wants to insert targeted ads into on-demand viewing by placing a piece of hardware between cable operators and consumers While we were researching on BlackArrow online we came across YuMe Networks and realized it is worth writing about.

The well-funded YuMe Networks is aiming to match video publishers with video advertising using a bit of contextual analysis. The company said video content is targeted based on tags and metadata, something that generally works much better for established content creators who label their work well. YuMe uses such information to slot videos into ad-friendly content buckets such as auto, finance, and entertainment.

It’s not quite a highly automated process though, as ad placements are based on broad categories and in fact YuMe employs actual humans to screen content and group it into such categories. That’s in contrast to companies such as TVEyes’ Podscope and Nexidia, which are applying speech recognition tools to decipher what’s going on in a video and place an ad next to it.

The company is based in Redwood City, Calif and has taken more than $7 million in its first round of funding from Khosla Ventures, Accel Partners, and BV Capital. With the current funding their total financing is already $16 million and makes them a well funded contender in the realm of video advertising. The new participant here is DAG Ventures. VideoEgg, by contrast, is one of the largest players in terms of funding having attracted over $34 million over four rounds.

The ads are also included with the video as it’s syndicated on other sites. All distribution is monitored through their analytics package, which also allows geographical targeting down to the zip code. YuMe currently supports video on the web, downloads, mobile and IPTV. Some of their clients include HouseValues.com, True.com, Southwest Media Group, MSN Video, BitTorrent, Azureus, and Pando.

YuMe is building out its own ad inventory, though much of it consists of repurposing 30-second television slots, pretty much like SpotRunner’s ads, into shorter bits appropriate for the web.

YuMe has won “Best In Show Judges Choice” at the Under The Radar Entertainment and Media Conference in 2007.

The market

Video advertising is promising to be huge opportunity online and the sector is extremely competitive with new players entering every couple of weeks. Venture capitals also do think the online video advertising holds the chances to be the next big thing on Internet to bring billions of revenues in and are pouring big money into start-ups with the hope they come up to the groundbreaking technology that might shake the sector and make them the huge ROI.   

No matter what standard for video ads the sector might adopt – pre-roll ads, mid-roll adspost-roll ads, watermark ads, viral ads or overlay ads, the undisputed leader remains Google’s YouTube with its huge number of eyeballs. That’s why the smaller players are focusing not on the reach but on different approaches and technologies to more effectively serve, track and measure these video ads. The video ads are in their infancy on Web and there is plenty of room for innovation and growth and all those small start-up companies hold their good chances for success.

Some companies, as we know them, include BlackArrow, BrightRoll, XillianTVPodaddies, VMIX and MeeVee. BrightRoll video ad network itself has raises $5 Million while VMIX, yet another video network company has also raised a whopping amount of money $16.5M to expand its business. Other video advertising players include Revver, VideoEgg’s TheEggNetwork, ScanScout, Adap.tv, AdBrite’s InVideo platform, BroadRamp and Blinkx.

eMarketer predicts online video advertising to nearly double in 2008 to $1.3 billion, but no one’s really nailed a scalable ad platform for video. However, Google’s been quietly testing their own system and there are a bunch of other startups tackling it as well.

More about YuMe Networks

YuMe is the first dedicated broadband video advertising network built from the ground up that offers a brand safe advertising experience that can be delivered to any device – PC, TV, mobile and more – whether streamed or downloaded.

YuMe co–founders Jayant Kadambi and Ayyappan Sankaran realized early on that a strong broadband and IP–based video ad monetization infrastructure did not exist. Whereas today’s video advertising solutions are incremental modifications of existing text and banner networks, Ayyappan and Jayant recognized that video is fundamentally different and in order to properly monetize, transport, traffic and reliably report against video, a new type of advertising network was necessary.

Web advertising has evolved from text, to display and now to video. YuMe is the only ad network built exclusively for the new web video world, providing advertisers and publishers the unprecedented ability to identify, classify and track content to ensure brand safety, contextual relevance, controlled syndication and consistent delivery across all digital media platforms – web, downloads, mobile and IPTV.

YuMe provides publishers the unique ability to identify, classify and track content to ensure brand safety, contextual brand relevance, controlled syndication and consistent delivery to any device – PC, TV, Mobile – whether streamed or downloaded.

YuMe brings order to what is currently chaos in online video. Our solution enables publishers to instantly organize all the video on their site into content channels – automotive, financial services, entertainment, family friendly and more – unlocking new inventory for monetization and allowing advertisers to more precisely target their message to content.

Publisher Benefits?

Enable advertisers to precision target their video ads within your content, increasing the value of your inventory and CPMs. You can now offer more than just run–of–site campaigns.

Syndicate video assets with confidence. YuMe’s proprietary tracking technology allows you to track, monitor and control the distribution and monetization of your video

Deliver richer experiences to customers and communities by tying brand messaging to positioning. No more brands associated with content that is inappropriate or not contextually relevant to the advertiser.

Strike the right balance of advertising and content. YuMe separates the serving of content from the serving of ads, allowing you to determine the best mix of ad types across your channels of content.

YuMe delivers a brand safe, monitored and measured experience across all digital media platforms – Web, Downloads, Mobile and IPTV.

Management Team

Jayant Kadambi, Co–founder and CEO

Jayant Kadambi has over 18 years of experience in the areas of networking, hardware architecture and semiconductors. Prior to co-founding YuMe in 2004, Jayant was Vice President R&D and Officer of Netopia, Inc., a publicly held manufacturer of DSL equipment and service provider for ISP’s and carriers. Jayant joined Netopia upon its acquisition in 1999 of StarNet Technologies, a VoDSL company he had co-founded. Prior to co-founding StarNet, Jayant held various technical and marketing positions in AMD’s networks division, and AT&T Bell Labs, where he worked on high-speed LAN systems, hardware and DSL technologies. Jayant received his BSEE and Masters in Electrical Engineering from Rensselaer Polytechnic. Jayant is the co-author of a book on Gigabit Ethernet and the holder of several patents in the networking arena.

Ayyappan Sankaran, Co–founder and CTO

Ayyappan Sankaran has over 18 years of experience in software architecture, design and development in the areas of real time embedded systems, voice and data networks and medical instrumentation. Prior to co-founding YuMe in 2004, Ayyappan was Director of software development at Netopia, Inc., a publicly held manufacturer of DSL equipment and service provider for ISP’s and carriers. Ayyappan was a co-founder of StarNet Technologies, a VoDSL company that was acquired by Netopia in 1999. Prior to co-founding StarNet, Mr. Sankaran held various technical positions in Octel communications (acquired by Lucent technologies), Abbott Labs, and Ready Systems. Ayyappan holds a BSEE from the College of Engineering, Madras, India and a Masters in Electrical Engineering from the University of Texas.

Grant Ries, Vice President of Business Development

Grant Ries has over 10 years of experience in business development, sales and product marketing. Prior to joining YuMe, Grant was VP of Business Development at Revenue Science. Grant was a member of Revenue Science since its inception and served in a variety of strategic roles, from sales and marketing and account management to business development. Grant holds both a Bachelor of Arts and Masters Degree from The University of Washington.

Steven Comfort, Vice President of Sales

The last 13 of Steven’s 18 years in advertising have been spent in the interactive sector. He has run sales teams at a string of successful young companies: Wired Digital, 24/7 Real Media, eGroups, Tickle and hi5. Prior to 1994, Steven worked in the media planning departments of MediaVest and Euro RSCG in New York City. Steven holds a BA from the University of North Carolina – Chapel Hill.

Bob Bahramipour, Vice President of Ad Operations

Bob has 15 years of experience at major media & internet companies, as well as start-ups. Most recently, as a senior member of the Yahoo! Search team, Bob managed the toolbar business and was responsible for overseeing product, distribution, and partnerships. Prior to Yahoo!, Bob served as the Director of Business Development at 3721 Technology Co Ltd., a Chinese search engine which was acquired by Yahoo in 2003. Bob was also a co-founder & VP of Business Development for Switchouse Inc, an online marketplace for consumers. Prior to Switchouse, Bob held of variety of positions in Volpe Brown Whelan & Company’s M&A advisory group, within SBC’s (now AT&T) corporate development team, and at Braxton Associates, a boutique strategy consulting firm. Bob received his BS from Georgetown University’s School of Foreign Service and attended Northwestern’s J.L. Kellogg Graduate School of Business.

Molly Glover Gallatin, Director of Marketing

Molly brings over 15 years of media and marketing management experience to the YuMe team. Molly began her work in interactive media in 1997 when she launched Granite Broadcasting’s Internet Division, overseeing operations and sales for ten network-affiliated TV station websites. Molly joins YuMe from Knight Ridder Digital, where she managed marketing and communications for the Real Cities Network. Prior to joining Knight Ridder Digital Molly worked for start-ups in the digital media management and Internet TV space – eMotion and RespondTV. Molly began her career in advertising, working in account management at BBDO and D’Arcy Masius Benton Bowles in New York. Molly received her BS from the University of Colorado at Boulder and her MBA from Columbia University.

Investors

Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of their ideas in both traditional venture areas like the Internet, computing, mobile, and silicon technology arenas but also supports breakthrough scientific work in clean technology areas such as bio–refineries for energy and bioplastics, solar, battery and other environmentally friendly technologies. Vinod Khosla was formerly a General Partner at Kleiner Perkins and founder of Sun Microsystems. Vinod has been labeled the #1 VC by Forbes and Fortune recently labeled him as one the nation’s most influential ethanol advocates, noting “there are venture capitalists, and there’s Vinod Khosla.” Vinod Khosla founded the firm in 2004 and was joined by partners David Weiden and Samir Kaul, as well as chief scientific officer Doug Cameron in 2006.
 
Founded in 1983, Accel Partners is one of the world’s leading venture capital firms. The firm is dedicated to partnering with outstanding entrepreneurs to build world–class Internet, software and networking companies. Accel Partners has more than $4bn under management from its offices in Palo Alto, London, and China, and its portfolio companies have completed IPOs that have created well over $150 billion in market capitalization.
 
BV Capital, headquartered in San Francisco, CA and Hamburg, Germany, is an early–stage venture capital firm. Established in 1997, BV focuses exclusively on the intersection of the consumer Internet, digital media and communication software sectors worldwide. BV’s team adds significant expertise and service to entrepreneurs who strive to turn ideas into long–term, sustainable growth companies. Investments include many successes such as Angieslist, del.icio.us, eGroups, Expertcity (gotomypc), K2 Networks and shopping.com. The firm backed by several high profile US, Asian and European investors has been named “one of the most influential investors on either side of the Atlantic” by the Wall Street Journal. To learn more about BV Capital, please visit www.bvcapital.com.
 
DAG Ventures is a venture capital partnership investing in and helping outstanding entrepreneurs create leading, long-term companies across a range of markets. With roots from the 1980’s in cable TV, infrastructure, media, and wireless industries, the partnership today is privileged to work with world-class entrepreneurs as they build tomorrow’s leaders in the information technology, energy, and life science sectors.

More

http://yumenetworks.com/
http://www.techcrunch.com/2007/10/16/yume-closes-9-million-series-b/
http://www.crunchbase.com/company/yume
http://www.techcrunch.com/2007/07/06/video-ads-somebody-needs-to-solve-this-problem/
http://www.undertheradarblog.com/wp_blog.html?fb_2042860_anch=2648520
http://newteevee.com/2007/03/05/yume-launches-video-ad-network/
http://www.emarketer.com/Article.aspx?id=1004258
http://www.techcrunch.com/2007/05/11/youtube-video-advertising-no-pre-roll-no-context/
http://web2innovations.com/money/2008/02/09/blackarrow-took-12-million-to-tackle-the-video-advertising-relies-on-cable-companies/
http://venturebeat.com/2007/10/14/blackarrow-ad-management-for-modern-tv-unstealths-with-12m-financing/
http://adsense.blogspot.com/2006/05/introducing-video-ads.html
http://adwords.blogspot.com/2006/05/click-to-play-video-ads-for-adwords.html
http://adsense.blogspot.com/2007/05/adsense-coming-to-video-near-you.html
http://www.nytimes.com/2007/08/22/technology/22google.html
http://mashable.com/2007/08/21/youtube-reinvents-video-ads/
http://mashable.com/2007/05/11/youtube-ads-2/
http://www.forbes.com/2007/02/22/video-ads-youtube-tech-media-cx_lh_0223video.html
http://venturebeat.com/2006/11/08/skipping-the-ads-black-arrow-raises-1475m-to-defy-you/
http://www.khoslaventures.com/
http://www.accel.com/
http://www.bvcapital.com/

Mobivox takes $11M series A round from IDG Ventures

A couple of months ago IDG Ventures Boston led an $11 million series A round of funding for a Canadian company called Mobivox, which lets registered members make cheap or free phone calls around the world. The Montreal-based company is essentially letting members call to a number of countrieres free of charge and to other countries at around 2 cents.

IDG was joined by IDG Ventures China and IDG Ventures Vietnam. Previous investors include Brightspark Ventures of Toronto and Skypoint Capital Corp. of Ottawa. More information about all investors involved can be found below.

Earlier last year Mobivox launched the beta of its new mobile-to-Skype service. Registered Mobivox users with Skype accounts can call local access numbers to be connected via a virtual operator to their Skype contacts, for free. The service works with landlines and mobile phones, and it requires no download to your phone or PC. To use the service, just give Mobivox your telephone numbers and Skype account info.

Mobivox’s business model makes revenue from international calls. Users buy into a credit system that lets them purchase chunks of up to $100 international mobile-to-landline credit at a time, without having to buy it from Skype directly. There are no charges for using the service beyond any minutes you use up on your mobile or domestic-calling plan, and since Mobivox gives you a local number, you’re likely to avoid any long-distance charges on landlines.

Mobivox, reviewed by different testers and bloggers, was said to be a little kludgy to set up originally, probably cause its still in Alpha, but the easy part about it is it can use voice commands over a regular local phone call, so one just dials and says “my contact” and “Skype” and the service will connect you to an available Skype user — or one’s other contacts’ mobile and landline numbers. It automatically syncs with your Skype contacts after the sync is triggered by calling in to see if your Skype contacts were online or not.

The most frustrating part of trying to access Skype mobile solutions over some of the other services is downloading the client on the often select number of handsets available. It’s getting better as the startups add more handsets, but it’s still limited. Well, Mobivox also says they will have a mobile client available starting in April (2007), so we guess they’ll be jumping on that bandwagon too, for users that want a mobile interface.

Other users have checked out a number of VoIP mobile SPs and claimed they have finally found one that really knows what the users want. For example, one doesn’t want to open another account and purchase credits to use a facilitator for your existing Skype account and contacts. You don’t want to go through another operator no matter how intelligent it may be, you just want to go to your mobile and call your Skype contacts as you would a normal contact in your phone book and if you are WiFi connected, great, because that’s the way we want to go and stop being exploited by high mobile cost carriers.

The same user, we have read online about, advocated by that time that the only company he was aware of does this and that is fring.com.

Another one is asking: am I missing something about why I need a 3rd party? So I just installed Skype for Windows Smart Phones on my T-mobile Dash and it works flawlessly! Some other sources, however, explained the smart phones are in usage of no more than 1% of the mobile users worldwide.

The Management

Stéphane Marceau | President and CEO

Stéphane Marceau brings over 12 years of global experience to Mobivox in building and marketing IP communications to consumer markets. As Vice-President with Bell Canada, he built several new business lines, including the residential VoIP operating unit. Stéphane served as VP and head of many different Bell groups – consumer strategy, e-commerce, online SME markets and corporate development – and led several acquisitions and partnerships. Prior to his time at Bell Canada, he advised many of the largest wireless and telecom companies in Western Europe, the U.S. and Canada on Internet strategy and technology opportunities. Stéphane is also on the board of several web 2.0 start-ups in Montreal. He holds a Master’s degree in Management of Technology from the University of Waterloo, which he obtained in 1994 after earning a BA in Finance from the Université du Québec à Montréal in 1992.

Eric Reiher | Founder and CTO

Eric Reiher has spent the last 15 years contributing his vision to several leading-edge Research and Development projects. Since 2002, he has devoted himself to the development of MOBIVOX core technology. Prior to that, Eric acquired in-depth telecom and automatic speech recognition experience at Locus Dialogue, a fast-growing high-tech company that was ultimately acquired by Scansoft. Eric started his career at the Centre de Recherche Informatique de Montréal (CRIM), where he rapidly became a project leader and led various projects to completion, including an advanced image analysis mandate. He holds a Master’s degree in Computer Science from the Université de Montréal, which he obtained in 1990 after earning a BA in Computer Science, with a minor in mathematics, from the Université de Sherbrooke in 1988.

Mark MacLeod | Chief Financial Officer

Mark MacLeod brings 16 years of management and corporate finance experience to MOBIVOX, including over 8 years with technology start-ups. Most recently, Mark was Vice President, Finance for networked storage vendor Terrascale Technologies Inc. which was acquired by Rackable Systems Inc. (NASDAQ: RACK) in September 2006. Mark was previously Chief Financial Officer at IP networking vendor Hexago Inc. Prior to Hexago, he led Finance and Corporate Development for electronic signature software vendor Silanis Technology Inc., the market leader in its space. Mark is a seasoned operator and transaction specialist with broad experience in cross border financings, acquisitions and strategic alliances. He is a Chartered Accountant and holds an MBA in Corporate Strategy & Organizational Behavior from McGill University.

Nitzan Shaer | Chief Operating Officer

Nitzan Shaer brings to MOBIVOX more than 14 years of global business experience in the mobile and consumer software space. As Head of the Mobile Product Group at Skype, Nitzan led the development and marketing efforts focused on making Skype available on mobile phones. Prior to his tenure at Skype, Nitzan served as Senior Product Manager at Microsoft, where he managed the development of three emerging businesses in the company’s Mobile and Embedded Division. Previously, Nitzan also managed Business Development and Marketing in Europe at Brightcom Technologies, a company focused on the development of Bluetooth applications. Nitzan served as a Captain in the Israel Air Force, and graduated first in his class from the Air Force Academy. Most recently, as Entrepreneur In Residence at IDG Ventures Boston, Nitzan focused on identifying new investment opportunities in the telecommunications and consumer Internet industries. Nitzan graduated summa cum laude with a Bachelor of Science degree in Industrial Engineering and Management from Technion – Israel Institute of Technology and holds an MBA from Harvard Business School. He lives in Boston with his wife and son and enjoys mountain climbing in his spare time.

Maxime Julien | Senior Vice President, Research & Development

Maxime brings over 17 years of senior management and engineering excellence to Mobivox. Most recently, Maxime was COO for Electronic Arts’ Montreal Studios where he was responsible for all aspects of studio operations and grew the team from 75 to over 300 people within 12 months. In addition, he participated in development of the most advanced game development framework of the industry. Prior to EA, Maxime led operations for Ubisoft where he reorganized and revitalized 6 operating groups covering over 300 team members, introducing best practices for software development and product delivery. Maxime also held several executive and leadership roles in the management of high-tech enterprises and blue-chip companies such as Ericsson, Motorola, Teleglobe and CAE. Maxime holds a Bachelor’s degree in Electrical Engineering (B.Eng.) from Laval University.

The investors

The company was founded in 2005 and has raised funds before its series A, which is known to be $3 million from both Brightspark Ventures and Skypoint Capital. All investors with brief information about them are included below.

IDG Ventures Boston

IDG Ventures Boston is an independent partnership that enables entrepreneurs to grow innovative, global companies. With $280 million under management, the firm is focused on investing in early stage information technology and life sciences companies and is led by a team with more than half a century of combined experience in venture capital. IDG Ventures Boston is affiliated with the IDG Ventures network of funds, a global $2+ billion network of independently managed funds spanning Asia and North America.

BrightSpark 

Brightspark is a leading early-stage software venture capital fund. Brightspark works closely with entrepreneurs to develop and build market-leading software companies. Brightspark’s innovative investment approach focuses on working closely with early-stage companies through their development and growth phase. Brightspark’s team brings years of investment and technology expertise in creating and operating software companies in the areas of application and infrastructure software, enterprise software and communications software. Brightspark’s investments range from “concept”-stage companies, led by domain experts looking to commercialize an idea or technology, to working with experienced entrepreneurs looking to scale their existing businesses. With offices in Toronto and Montreal, Brightspark is backed by leading institutional investors who share its approach to early-stage software investing.

Skypoint 

Skypoint Capital forms and manages venture capital funds that stimulate and leverage the ever-changing telecommunications and information technology sector. The investment team begins by investing time with the entrepreneur long before committing capital. After investing, the team brings its vast operating experience and passion for growing businesses to portfolio companies. The members of the Skypoint Capital investment team have participated in more than 80 technology start-ups in the Ottawa and Montreal regions.

IDG Venture China

IDG Venture Investment China is a premier venture capital firm in China focused on helping early to growth stage companies become significant players in the IT, consumer, media and life sciences industries. The firm has demonstrated success with over 30 IPO’s and successful M&A transactions and a portfolio that includes Baidu, CTrip, Sohu, Tencents, HomeInns, and KingDee. With a 14 year history of investing in China and $1.3B under management, IDG Venture Investment China is proud to have won the trust of entrepreneurs, investors, business communities and government organizations alike.

IDG Ventures Vietnam

Established in 2004, IDG Ventures Vietnam (IDGVV) is the first and leading technology venture capital fund in Vietnam. With $100M under management, the fund invests in market leading companies in the technology, media, and telecommunications sectors in Vietnam as well as select parts of Southeast Asia. As part of the network of IDG Ventures funds worldwide, IDGVV has been at the forefront in the development of the venture capital industry in the region as well as promoting technology entrepreneurship. In addition to Mobivox, some of its current investments include VinaGame, Punch Entertainment, Clip.vn, VinaPay, and SanOTC.com.

The market

The market is extremely overcrowded and Mobivox is facing staggering competition in the mobile VoIP space. The competition seems to guarantee cheaper phone calls for the rest of us as well as more used minutes for the cell phone companies. Companies include from Google and Tellme’s free 411 services to an army of small to mid level companies. Tellme, by the way, was recently bought by Microsoft. Other players include EQO that used to have a similar PC-style Skype version, IdeaSIP (which supports video), Gizmo Project (which has a very cool client), Fring.com, Stanaphone, Sunrocket (2nd largest to Vonage), globedialer.com, which has taken an even easier route by simply letting people call internationally via the PSTN network and Barablu, which is yet another company dealing with Skype but is based in Europe. iSkoot seems like its becoming Skype’s chosen mobile solution and among other startups with Skype mobile solutions, like Mobivox itself, they are all trying to figure out the differentiators and spread the market shares among themselves. iSkoot, by contrast, is based in Massachusetts and has more than $13.2 million in financing and is backed by Charles River Ventures, Khosla Ventures, ZG Ventures, and Jesselson Capital Corp.
More

http://www.mobivox.com/
http://www.mobivox.com/rates/
http://techcfo.blogspot.com
http://news.moneycentral.msn.com/provider/providerarticle.aspx?Feed=ACBJ&Date=20071011&ID=7614418
http://gigaom.com/2007/03/19/mobivox-more-skype-on-mobile/
http://www.businessweek.com/the_thread/techbeat/archives/2007/05/new_voip_player.html
http://www.webware.com/8301-1_109-9718526-2.html
http://labs.google.com/goog411/
http://www.tellme.com/products/TellmeByVoice
http://www.bspark.com/pages/default.asp?Section=1
http://www.skypointcorp.com/
http://blogs.msdn.com/maamktg/archive/2007/03/19/revolutionary.aspx
http://markevanstech.com/2007/05/10/mobile-skypefinally/
http://www.dslreports.com/forum/r19165054-Skype-Video-leak-Whos-taking-up-a-battle-with-skype
http://www.myvoipprovider.com/VoIP_Provider_Graveyard/
http://www.idgvc.com
http://www.brightspark.com
http://www.idgvb.com
http://www.skypointcorp.com