Magnify.net has closed another $500,000 in funding, and left the door open for another $500,000 infusion if necessary, according to SEC filings cited by PaidContent. The company, which pitches itself as the easiest way to build online video channels, has taken a different approach to fundraising than many other online video companies, which have taken large amounts of venture capital to fund operations and expansion.
All previous Magnify institutional investors participated in the round, including Next Stage Capital, New York Angels, Rose Tech Ventures, and Active Angel Investors. Magnify.net has raised slightly more than $3 million since its launch in 2006, and CEO Steve Rosenbaum said the company is approaching profitability quickly thanks to rapid audience increases.
"Our investors asked what we needed to get to the finish line, and they gave it to us. We told them, besides our free customers, who don't cost us anything, we're revenue positive on each new customer," Rosenbaum said. "I've never understood the model where you take customers at a loss and expect to make it up in volume. We do business with customers with specific needs, they need positive ROI, and we need to be positive on them."
Rosenbaum also noted that aggregation has become less of a turn off to media companies than it was a year ago, which is fueling some of Magnify's growth. The company also announced the beta launch of new product EventCaster, which will aggregate content from 21 online video sources, Twitter, Flickr, and RSS feeds. Rosenbaum said Magnify also re-launched its home page and "cleaned up the noise" there to make it easier for new customers to navigate.
- see the PaidContent article here
Magnify talked to us about bringing online video to small businesses
FierceOnlineVideo Leaders - Steve Rosenbaum, CEO, Magnify.net