Aug. 21, 2007 - Metacafe Raises $30 Million In Series C Financing Options

[Talia]

Metacafe, whose more than 25 million unique viewers each month make it one of the world’s largest video sites (comScore Media Metrix, June 2007), today announced it has raised $30 million in Series C financing. The round was led by new investors Highland Capital Partners and DAG Ventures. Existing investors Accel Partners and Benchmark Capital also participated.

“Metacafe is defining the next generation of online video, moving away from simple video sharing and hosting to delivering an exceptional entertainment experience for short-form content,” said Richard de Silva, Partner, Highland Capital Partners. “Its sophisticated approach to audience-driven programming is unique in the industry.”

“Over the past four years Metacafe has built a large and global audience, which has grown quite significantly throughout 2007,” said Tom Goodrich, Partner, DAG Ventures. “We expect the growth to continue as Metacafe rolls out new ways of tapping its community to customize the viewing experience for audience members in different regions around the world.”

The money raised will be used to support the company’s continued global growth, including expanding the breadth and depth of content – from emerging video creators through the Producer RewardsTM program and through partnerships with established media companies.

With their firms’ investments, both Richard de Silva of Highland Capital Partners and Tom Goodrich of DAG Ventures will join the Metacafe board of directors. With the close of this round, co-founder Arik Czerniak will step away from day-to-day operations to pursue other entrepreneurial endeavors but will remain on the board and continue to advise the company on strategic matters.

“This financing underscores the strength of the Metacafe value proposition and bolsters our ability to reach entertainment enthusiasts, video creators, content providers and brand advertisers across the globe,” said Erick Hachenburg, CEO, Metacafe. “By working closely with each of these groups and putting our community at the forefront of everything we do, Metacafe is delivering an unmatched online entertainment experience.”