Running an Internet video infrastructure company is a lot like being Paris Hilton on the Vegas party circuit. Just show up, and you’re likely to get paid.
peHUB has learned that the two latest examples are Move Networks and Acinion, which have raised a combined $50 million in follow-on venture funding. American Fork, Utah-based Move got the larger stash with $34 million, while Acton, Mass.-based Acinion secured $16 million. This brings Move’s total venture capitalization up over $45 million from firms like Steamboat Ventures and Hummer Winblad Venture Partners, while Acinion now has raised around $21 million from firms like Globespan Capital Partners, IDG Ventures Boston and Sigma Partners (new to this round).
There are all sorts of specific differences between Move and Acinion, but they both have the same general goal: Use proprietary server technology to improve the delivery of online video.
It’s an extremely crowded space, and there are almost certainly bound to be a significant number of VC-backed busts. That said, I’m still partial to the following comment of venture capitalist/blogger Dave Beisel, who seems to believe that the massive market opportunity is draining away much of the market saturation:
“While in the age of YouTube it may seem trivial to mention, but I believe it can’t be overstated. We’re moving to a world where every web page, every device, every screen will be have some type of video content. The long-tail of video content will be wagging.”
Move and Acinion sure hope so… As do their venture capitalists.