Video advertising startup Broadband Enterprises has been profitable since 2004, when it was founded. It never had to take outside investment. But now, amid increasing demand and competition, the company has accepted a $10 million check as “an accelerator,” according to CEO Matt Wasserlauf.
The funding is the first new investment of Velocity Interactive Group, the recently formed digital media investment firm founded by Ross
Levinsohn (formerly of Fox Interactive), Jonathan Miller (formerly of AOL) and VC firm ComVentures. Miller, who had become close with Broadband Enterprises over the course of the last year, is joining the company’s board.
New York City-based Broadband Enterprises has yearly revenues in the “tens of millions” of dollars, counting 45 million monthly unique video viewers across the properties it sells advertising and syndicates video for. It also produces original online content for advertisers, with three shows currently airing and ten new shows coming in April, according to Wasserlauf. He added that the new shows would take advantage of Velocity Interactive Group’s connections in the media space to procure celebrities and talent. Original content accounts for about 10 percent of Broadband Enterprises’ business.
In a previous profile we wrote of the company and at our NewTeeVee Live conference last November, Wasserlauf diverged from popular wisdom to speak of the primacy of pre-roll ads. “We have everything from pre-roll to mid-roll to overlay to product placement, but pre-roll continues to be the scalable billable unit that’s driving our business,” he said on Wednesday.
Everybody selling online video advertising likes to claim that they’re the largest in the biz, either by revenue (which they usually won’t disclose to us) or unique visitors (where counts are notoriously faulty). See our recent story on VideoEgg and Tremor Media for reference.