Youtube with $8.5 million round

Filed in archive Venture Capital on April 6, 2006

Youtube - the online video hoster does a full blown Round B - raising $8.5 million.

"The San Mateo, California-based company had raised its first round of $3.5 million from Sequoia last November (see YouTube Scores $3.5 Million). YouTube's site hosts short videos uploaded by users and allows streaming and sharing.

The online video service market is set for huge growth, according to a report released Wednesday by IDC. The research firm said Internet video services will reach $1.7 billion in revenue by 2010, increasing more than $1.5 billion from 2005.

Advertising will continue to be the major way to monetize video, accounting for 46 percent of revenue in 2010, though subscription and à la carte models are set to take a bigger chunk than they do now."

Youtube is a wonderful tool and does a great job bringing video to the masess. Alsa it won't generate anypositive cash-flows very soon. But investors are certainly able to bankroll the growth with a Series C and D eventually.