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NewSpring Capital leads $12 Million Growth Financing in The FeedRoom
NewSpring Capital, a leading provider of private equity capital in the Mid-Atlantic region, today announced that it has led a $12 million growth financing in the The FeedRoom Inc. (“FeedRoom”) through its growth equity fund, NewSpring Ventures. The FeedRoom, headquartered in New York, NY, is a leading provider of Web video solutions for media companies, corporations and government agencies. Existing FeedRoom investors BEV Capital and Velocity Equity Partners participated in the round as well. The FeedRoom will use the new capital to accelerate sales and continue development of its fourth-generation video platform that is being released over 2008.
The funding marks the latest milestone in a period of substantial growth for the Company since CEO and President, Mark Portu joined The FeedRoom in September 2007. The resources from this round of financing will be used to continue expansion of staff in both product development and sales departments of the Company. These additional assets will support the continued rollout of The FeedRoom’s next-generation video platform, the centerpiece of the Company’s plans to extend its 10 years of online video leadership and further broaden its blue chip customer base. The rollout began in early June with the release of FeedRoom Access, an end-to-end streaming solution that affords accessibility to disabled users.
“This infusion of capital is all about growth and the acceleration of our business model,” Portu said. “We have been a leader in shaping this market for a decade and bringing in a partner such as NewSpring allows us to leverage the proven team and technology as fast and aggressively as possible.”
Recent statistics support the explosive growth and acceleration of the online video sector. April 2008 data from comScore Video Metrix revealed that 71 percent of the total U.S. Internet audience viewed online video. Another nationally released report stated that online video will represent 30 percent of total data transfers by the end of 2008.
In leading The FeedRoom’s round, NewSpring General Partner, Marc R. Lederman will join The FeedRoom’s Board of Directors. Lederman said, “The FeedRoom’s established leadership in the online video sector and the diversity of its offerings and customer base made it an ideal investment opportunity for NewSpring Capital’s growth and expansion stage fund.
“This market is at a critical point in its growth and evolution and the companies that will lead the next phase must possess both experience and next-generation technology,” Lederman said. “We believe The FeedRoom has the right model and the right team in place to take full advantage of the opportunity as corporations continue to embrace video as a dominant form of communication.” For more information,please visit www.feedroom.com.
