Animoto, a platform that lets consumers and businesses create videos from their own photos and music, has received USD4.4m in funding led by Madrona Venture Group.
Animoto, a platform that lets consumers and businesses create videos from their own photos and music, has received USD4.4m in funding led by Madrona Venture Group.
Additional investors include Jeff Clavier’s SoftTech VC and Bruce Livingstone, the founder of iStockphoto, as well as Amazon.com, which originally invested in Animoto in May 2008.
"Since founding Animoto we’ve focused on delivering a simple user experience with a clear business model to allow anyone the ability to create professional video," says Brad Jefferson, chief executive and co-founder of Animoto. "We’ve created a base of raving fans and have been operating at cashflow positive since December 2008. In Madrona we have found a partner who enthusiastically believes in the creative vision and financial opportunity we see for Animoto. Madrona’s leadership and investment will help accelerate our product roadmap, distribution strategy, and team growth."
Launched in August 2007, the Animoto website currently has 750,000 registered users, and approximately ten per cent of those users have paid for premium services. Additionally, Animoto’s Facebook application has two million users and Animoto’s iPhone application has 300,000 users.
The heart of Animoto is its patent-pending Cinematic Artificial Intelligence technology that thinks like a director and editor using the same post-production skills and techniques that are used in television and film. Videos are produced in widescreen format and can be emailed, embedded on any website, or downloaded in DVD-quality formats for display on computers, televisions, and even large projection screens.
"Animoto’s very talented team and break-through products have redefined multi-media storytelling and photosharing," says Matt McIlwain, managing director of Madrona Venture Group. "Animoto’s success in cost-effectively generating almost 100,000 paying customers across consumers, businesses and professional photographers establishes them as the market leader with great potential for the future."
McIlwain has joined the company’s board of directors.
