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Summary:

While the shakeout in the online video market has already occurred in the U.S. with YouTube reigning supreme over other sites, in China it’s a different story — which is why Chinese video site Youku.com was able to raise $40 million in a funding round announced […]

Youku

Youku.com

While the shakeout in the online video market has already occurred in the U.S. with YouTube reigning supreme over other sites, in China it’s a different story — which is why Chinese video site Youku.com was able to raise $40 million in a funding round announced yesterday, and may be looking to bring on an additional $40 million in financing.

The new round was led by Chengwei Ventures, with existing investors Brookside (Bain) Capital, Maverick Capital and Sutter Hill Ventures also participating. So far, Youku has raised $110 million, including $30 million with an additional $10 million loan in its last financing round in June 2008.

The online video industry in China is still fairly wide open, in part due to the government’s aggressive stance against global online video leader YouTube. But Youku seems to be in a good position to capture a larger share of the market with the new funding.

The company says it works with more than 1,500 content license holders and has attracted over 350 brand advertisers so far. It had 149 million unique visitors from home or office PCs in October, with another 57 million viewers accessing the site from Internet cafes, according to research firm iResearch. Youku’s revenue for 2009 is projected to be RMB 200 million ($29.3 million).

  1. Based on the larger rate of growth of Youku.com versus YouTube.com in its initial two+ years, Youku is obviously taking advantage of the path laid out by YouTube.

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  2. [...] in China is still rapidly growing, with major investments being made in video sharing sites like Youku, the country could also get a major premium video aggregator soon. As first reported by Reuters and [...]

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  3. [...] served as COO and then CFO. Youku has secured a total of $110 million in financing, including $40 million that it added in December. The company grossed 200 million RMB (about $29 million) in revenue in 2009, and [...]

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  4. [...] cash to tackle the online video market in China. In December, online video competitor Youku raised $40 million in a funding round led by Chengwei Ventures, with existing investors Brookside (Bain) Capital, [...]

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  5. [...] Tudou’s competition is Youku.com, which raised $40 million in financing in December. Unlike Tudou, which hosts mainly user-generated content, Youku primarily licenses [...]

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  6. [...] Tudou’s competition is Youku.com, which raised $40 million in financing in December. Unlike Tudou, which hosts mainly user-generated content, Youku primarily licenses [...]

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  7. [...] Tudou’s competition is Youku.com, which raised $40 million in financing in December. Unlike Tudou, which hosts mainly user-generated content, Youku primarily licenses [...]

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  8. [...] last month, which was led by Singapore-based Temasek Holdings. In December, No. 1 video site Youku raised $40 million, with the possibility of raising another $40 million. And Chinese search giant Baidu is making a [...]

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