Encoding.com, a San Francisco-based provider of online video encoding services, has raised $1.25 million in Series A funding. Metamorphic Ventures led the round, and was joined by angels Patrick Condon, Fred Hamilton, Zelkova Ventures, Dave Morgan and Allen Morgan.
Encoding.com, the leading global provider of studio-class online video encoding services, today announced the close of its Series A investment for US $1.25 million. The funding was led by Metamorphic Ventures and included angel investors: Patrick Condon, Fred Hamilton, Zelkova Ventures, Dave Morgan, and Allen Morgan. The funds will be used to fuel aggressive sales, marketing, and partnership programs to complement the word-of-mouth and natural search efforts that have already propelled Encoding.com to its leadership position in this emerging growth sector.
The investment round was led by Marc Michel, Managing Partner of Metamorphic Ventures, who has also joined the Encoding.com Board of Directors. Other notable investors include: Patrick Condon, co-founder of Rackspace; Fred Hamilton, Jr., Rackspace investor and former Board Member; early stage VC firm Zelkova Ventures; Dave Morgan, CEO of Simulmedia and founder of TACODA and Real Media; and Allen Morgan, angel investor and venture partner at Mayfield Fund.
Launched in September 2008, Encoding.com was the first company to introduce a cloud-based, video encoding Software-as-a-Service (SaaS) solution for website operators hosting user-generated and premium video, platform infrastructure providers, and professional video developers. The company encodes an average of 30,000 videos per day for hundreds of customers including MTV Networks, WebMD, Nokia, Giant Realm, MySpace, Red Bull, and CarDomain. To date, Encoding.com has encoded more than four million videos, including a peak of 100,000 videos in just one weekend.
Working with both The Rackspace Cloud and Amazon EC2, Encoding.com provides its customers with instant and infinite scalability to meet any peak-load requirements, at a fraction of the cost of in-house encoding. It is the only encoding firm with guaranteed performance in its Service Level Agreements. Encoding.com works with marketing service agencies, platform technology providers, user-generated video platforms, online education and training firms, and premium video aggregators.
“We see many funding opportunities in the digital media and technology verticals at Metamorphic, but Encoding.com stands out as a smart and proven solution that overlaps video, cloud and SaaS,” said Marc Michel, Managing Partner of Metamorphic Ventures and new Board Member of Encoding.com. “Led by veterans Gregg Heil and Jeff Malkin, we are very confident that Encoding.com will extend its dominant position in the rapidly growing online video services space. We are thrilled to join their team.”
“Encoding.com reminds me of Rackspace during its early days,” said Patrick Condon, co-founder of Rackspace. “They provide a critical infrastructure service empowering their customers to focus on their own core competencies, while avoiding the cost and headaches of managing encoding in-house. Like Rackspace’s Fanatical Support, Encoding.com is all about solving a major pain point that has inhibited customer growth by providing a world-class service with excellent support. This is a winning approach.”
“At a time when VC funding for startups is historically low, and overall VC funding has fallen 37%, Gregg and I are grateful to have both the financial and advisory support of such high-caliber investors,” said Jeff Malkin, President of Encoding.com. “Leveraging open source software, cloud computing infrastructure, and SaaS business models has enabled us to quickly build a robust company, at a fraction of previous startup costs. We will utilize these funds to expand our marketing, sales and brand building initiatives to accelerate our growth and position us as THE go-to solution for high-volume video encoding.”
Encoding.com is the leading global provider of studio-class video services for video sites, agencies and website development platforms. Encoding.com makes transcoding video into all popular formats easy, cost-effective and instantly scalable. As the first and only encoding service offering service level agreements, Encoding.com removes the necessity for its customers to make heavy investments in expensive hardware/software solutions and overhead required to manage high-volume video transcoding needs and backs it with a wait-time service level guarantee. In 2008, the start-up was named one of seven finalists for the AWS Start-Up Challenge. This Software-as-a-Service (SaaS) business is based in Denver, Colorado and San Francisco, California. For more information about Encoding.com, visit http://www.Encoding.com.