LiveRail, a company that originally offered a video ad marketplace and has since changed tack to license its video ad server, has raised $500,000 from Pond Venture Partners. The company also announced today the release of a new free product, called Junction, for publishers to manage their ad relationships, similar to FreeWheel and adap.tv.
If you’ll forgive the pat on the back, we did predict LiveRail’s original model wouldn’t work when we first wrote about it last July.
LiveRail’s model…to try to get publishers to upload videos to its platform and categorize them, and advertisers to submit their ads and categorize them, then match the two (see example embedded above) — is just totally wrong for the current market.
LiveRail shut down the marketplace at the end of last year, according to CEO Mark Trefgarne. Bandwidth bills were too high to justify it.
Junction is being offered for free as a promotional tool for potential customers to pay for the ad server, said Trefgarne. The company now counts Quartz interactive, thePlatform, and Twistage as beta customers.
LiveRail, which has now raised “just under $1 million” total, is based in San Francisco and has five employees.