Online video-sharing company Metacafe Ltd. has raised $30 million in its third financing round, led by Highland Capital Partners and DAG Ventures. Existing investors Accel Partners and Benchmark Capital also participated. The company has raised $50 million to date.
Metacafe will use proceeds to support the company’s continued global growth, including expanding the breadth and depth of content from emerging video creators through the Producer Rewards program and through partnerships with established media companies.
Metacafe rates, collates and distributes video clips using an advertising-based business model. The company is considered one of the most prominent start-ups of the year, and sees itself as a competitor of YouTube (Google Video). Earlier this year, the company was negotiating a sale to Microsoft Corp. (Nasdaq:MSFT), but no deal was struck.
Metacafe is one of the world's largest video sites. In June, comScore Media Metrix noted that Metacafe had more than 25 million unique viewers each month.
Published by Globes [online], Israel business news - www.globes.co.il - on August 22, 2007
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