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Summary:

Profits may not have arrived for online video, but venture capitalists are still happy to pick up the bill. More and more U.S.-based, venture-backed online video companies are attracting more and more financing each year, according to Dow Jones VentureSource. Some $460.5 million was invested in […]

Profits may not have arrived for online video, but venture capitalists are still happy to pick up the bill. More and more U.S.-based, venture-backed online video companies are attracting more and more financing each year, according to Dow Jones VentureSource. Some $460.5 million was invested in such startups in 2007, up from $266.9 million in 2006. And already, in the first quarter of 2008, another $217.3 million rained down on the category.

In 2007, the money was spread among 68 startups for an average investment of $6.8 million each. That’s compared to 51 startups in 2006 and $5.2 million each, on average. This year, 29 startups have already received funding, and the average amount is on the upswing, too, to $7.5 million. That’s the opposite of broader trends; in the first quarter of 2008, venture funding was down 8 percent year-over-year and 9 percent quarter-over-quarter.

Based on previous years’ data, the first quarter is one of the smaller investment periods in the sector, but then again a troubled economy could slow investment in this economically risky category as 2008 wears on.

Dow Jones was nice enough to run a custom study for us, following up on the 2006 numbers we’d reported on last April. However, this time the firm used a more specific methodology to focus on online video, excluding IPTV platforms and general advertising companies (for instance, two companies included last year were Kasenna and Imagine Communications, not things we’d write about on NewTeeVee).

  1. [...] all over the place, converting dead loans into dead funds, VCs are still investing in online video. NewTeeVee reports some nice numbers: “This year, 29 startups have already received funding, and the [...]

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  2. [...] Edit Staff, Thursday, April 24, 2008 at 9:01 PM PT Comments (1) Profits may not have arrived for online video, but venture capitalists are still happy to pick up the bill. More and more U.S.-based, venture-backed online video companies are attracting more and more financing each year, according to Dow Jones VentureSource. Some $460.5 million was invested in such startups in 2007, up from $266.9 million in 2006. And already, in the first quarter of 2008, another $217.3 million rained down on the category. NewTeeVee has the exclusive. [...]

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  3. Hey NTV guys, would be a great article if you could take that 471M and break it down to who the top VC investors were in online video. There are a few big players and then a bunch of little guys and would be great to get this info out there.

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  4. Good idea Pablo. Will take a bit of work but we can try to do that for you soon.

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  5. [...] biz so lots of money pouring in obviously to try to capitalize… Newteevee.com has the story here Posted by brooks Filed in [...]

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  6. Ya thats crazy. Check out the stage6 replacement at http://www.setvid.com

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  7. I wonder if that money includes adult tube sites. I wonder if they are able to profit as much as the mainstream. Great stats none the less.

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  8. 2007 was a good year :-0

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  9. [...] Exclusive: U.S. Online Video Startups Raised $461M in 2007 « NewTeeVee Shakeout looms! (tags: online video youtube) [...]

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  10. [...] Read More at NewTeeVee – Exclusive: U.S. Online Video Startups Raised $461M in 2007 [...]

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