Video ad technology provider (and network) YuMe announced today that they have secured a $25 mil round of funding, led by Menlo Ventures, a new investor in the company.
The question of “why” is somewhat vague in the press release. By all accounts – including the release – the company is doing quite well, following on the heals of a stellar 2009 with the company reaching profitability. The release’s headline was less than helpful. “YuMe Raises $25 mil to Help TV Advertisers Buy Online Video Audiences.”
Huh? I guess they are just giving the money to TV buyers to use on their network? Not quite.
$25 mil seems like a lot of cash for a profitable company that has already seen major growth and isn’t developing new technology. A rep for the company confirmed that the raise is to explore international opportunities for the ACE Platform, invest in product development, and further expand the sales and biz dev teams.
Still waiting for more on the live video ad serving offering. Managing the ad insertion points has always been the challenge for live in-stream ads that weren’t overlays. The technology to do it has been available for a few years, but the real world feasibility has always been the hold up.
Updates as they come in…..