Brad Hunstable shows off Ustream's Honeycomb app
Updated. So now we know why Ustream has been busy raising new funding from Korea Telecom and existing investors DCM and Softbank, and possibly why former CEO John Ham recently stepped down: The company collected less than half of the $75 million funding round it announced in early 2010, according to an SEC filing released Friday. [Hat tip to Business Insider.]
A quick recap: Last February, Ustream raised a strategic funding round led by Japanese mobile phone and Internet operator Softbank that altogether was worth up to $75 million. Softbank put in $20 million in an initial investment, taking a 13.7 percent stake in Ustream that valued the company at around $150 million. Softbank had 18 months to invest up to $55 million more, which would have given it a majority stake in the live streaming company.
But those funds never came.
The SEC filing indicates Ustream brought in about $33 million of the $75 million that it hoped to raise from Softbank, and Softbank never took a controlling stake in the firm. Instead, the startup announced a $10 million investment from Korea Telecom and an agreement to launch Ustream Korea as part of its Ustream Asia joint venture. Later, DCM and Softbank put another $6 million into Ustream and former CEO Ham stepped down.
Assuming the Korea Telecom and following DCM/Softbank investments are separate from Ustream’s $33 million Series B round, the company has raised a total of about $62 million. That’s not too shabby, but it’s far from the “more than $100 million” that continues to be quoted as Ustream’s total funding raised to date. It also answers the question of why Ustream needed to raise more cash just a year after the Softbank funding was announced: It didn’t burn through $75 million; it just never received the bulk of those funds.
The SEC filing also indicates a softening of Softbank’s strategic interest in Ustream. After all, rather than invest another $55 million of its own cash to take control of the live streaming startup, Softbank pursued a strategy of bringing in an additional shareholder to fund expansion instead. So what does Softbank know that we don’t?
Ustream did not respond to a request for comment by the time of this writing. We’ll update if we hear back from the company.
Update: Ustream CEO Brad Hunstable confirmed that its total funding to date is about $62 million, and gave some more background on the funding plans. He said that the primary reason for bringing on Korea Telecom was to have a strategic local partner on board, in the same way that Softbank is providing local support in Japan.
“We have the capital we need,” Hunstable said. As for its relationship with Softbank and the joint venture around Ustream Japan: “We continue to have big plans for Ustream Japan… It’s taking off and continues to grow month-over-month.”
Most of Ustream’s big $75m Softbank funding fell through http://t.co/U481R7Qt
RT @NewTeeVee: Most of Ustream’s big $75m Softbank funding fell through http://t.co/U481R7Qt
It looks like most of Ustream’s big $75m Softbank funding never actually came: http://t.co/xrHvsFyb [My latest on @GigaOM]
Most of Ustream’s big $75m Softbank funding fell through http://t.co/afGl3H6f
Most of Ustream’s big $75m Softbank funding fell through http://t.co/FTh8zNPP
Most of Ustream’s big $75m Softbank funding fell through http://t.co/bi4JCDB9
Most of Ustream’s big $75m Softbank funding fell through http://t.co/gOXUUZpt
Most of Ustream’s big $75m Softbank funding fell through http://t.co/Xo3Dqz5v
Most of Ustream’s big $75m Softbank funding fell through http://t.co/DCaUQ2yy
Most of Ustream’s big $75m Softbank funding fell through http://t.co/emtc6rIn
Most of Ustream’s big $75m Softbank funding fell through http://t.co/WHRcRL8S
Most of Ustream’s big $75m Softbank funding fell through http://t.co/xiWB3UAq
Most of Ustream’s big $75m Softbank funding fell through http://t.co/4zbEVAqp
Most of Ustream’s big $75m Softbank funding fell through http://t.co/aQYn4I22 @amarchugg #news
Most of Ustream’s big $75m Softbank funding fell through http://t.co/8m3wiWtk @amarchugg #news
Most of Ustream’s big $75m Softbank funding fell through http://t.co/TEdbsBX1
Most of Ustream’s big $75m Softbank funding fell through http://t.co/QZV8zXz8
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/GpJHT5ib
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/ZJDNttMK
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/I9uTB3D1
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/t7ylFSzB
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/Ff2DB5t1
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/8fhTV2lk
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/TWY05fRY
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/F3RbcXVq
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s Honeycomb app
So no… http://t.co/Zq3ffHVw
gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/POvneZzC
“@ryanlawler: It looks like most of Ustream’s big $75m Softbank funding never actually came: http://t.co/WvmT4gRk [for @GigaOM]” #in
Most of Ustream’s big $75m Softbank funding fell through http://t.co/IwBH4mvY
Most of Ustream’s big $75m Softbank funding fell through http://t.co/Yfgsau3e
Interesting: Most of Ustream’s big $75m Softbank funding fell through http://t.co/VxTQFyvQ #startups #funding
Most of Ustream’s big $75m Softbank funding fell through http://t.co/1oqdxpSC
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s… http://t.co/PtZq9sSN
Most of Ustream’s big $75m Softbank funding fell through http://t.co/e0l37Enq via Ryan Lawler
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/5YMLnlbO
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/UqfVyrEd
Most of Ustream’s big $75m Softbank funding fell through: Now we know why Ustream has been raising ne… http://t.co/3Dh8kQ3T #webseries
Most of Ustream’s big $75m Softbank funding fell through http://t.co/HykM3fRt
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/jb74HYS9
[DocDocc] Most of Ustream’s big $75m Softbank funding fell through http://t.co/j28bo2Xn via gigaOM
Most of Ustream’s big $75m Softbank funding fell through http://t.co/dXwpcEdz
Most of Ustream’s big $75m Softbank funding fell through http://t.co/ZqZ5Vycr #business #sourcemarketingdirect
Most of Ustream’s big $75m Softbank funding fell through http://t.co/JIDEmbwD
Most of Ustream’s big $75m Softbank funding fell through http://t.co/kkxKFoA4
Most of Ustream’s big $75m Softbank funding fell through http://t.co/xjbWSq0b
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/lHq1326w
Ustream今ひとつ影が薄いと思ったら。。。。
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/bi4JCDB9
Most of Ustream’s big $75m Softbank funding fell through http://t.co/ZJGHUqIQ
Most of Ustream’s big $75m Softbank funding fell through http://t.co/YPDCkAhu #business #midlandsconsultingcentre #
Most of Ustream’s big $75m Softbank funding fell through http://t.co/oL4mAEE7 #business
[TechResearch] Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s … http://t.co/DIz4yB2s #ID
Most of Ustream’s big $75m Softbank funding fell through http://t.co/GTtrlHl4
Most of Ustream’s big $75m Softbank funding fell through http://t.co/0HVlFFSH
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/ZGXnniAB
Most of Ustream’s big $75m Softbank funding fell through: Brad Hunstable shows off Ustream’s… http://t.co/ATJddVc8
#tech #news Most of Ustream’s big $75m Softbank funding fell through http://t.co/An6ZLIVd
Most of Ustream’s big $75m Softbank funding fell through http://t.co/BuKtMoMQ
@earth2tech: Most of Ustream’s big $75m Softbank funding fell through http://t.co/12mTdFFu
NewTeeVee: Most of Ustream’s big $75m Softbank funding fell through http://t.co/1Wxrnuoy
Most of Ustream’s big $75m Softbank funding fell through http://t.co/o1FikW4V
Most of Ustream’s big $75m Softbank funding fell through http://t.co/Xkzosrnd
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/bi4JCDB9
RT @flipboardbiz: RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/UqfVyrEd
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/bi4JCDB9
Most of Ustream’s big $75m Softbank funding never came http://t.co/RV5F5dXD
Most of Ustream’s big $75m Softbank funding never came – Updated. Now we know why Ustream has been raising new fundi… http://t.co/Zeceq7L3
RT @gigaOM: Most of Ustream’s big $75m Softbank funding never came http://t.co/Jbi5lRjt
GigaOM | Most of Ustream’s big $75m Softbank funding never came: http://t.co/jRC60Z4R (WOW, didn’t see that coming there…)
Most of Ustream’s big $75m Softbank funding fell through http://t.co/QuocTq8k via @zite
Most of Ustream’s big $75m Softbank funding never came: Brad Hunstable shows off Ustream’s Honeycomb app
Updated… http://t.co/vWaAMUEJ
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/J9ID8xKW
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/bi4JCDB9
Most of Ustream’s big $75m Softbank funding never came http://t.co/8nhGnKwd
Most of Ustream’s big $75m Softbank funding never came http://t.co/Z9JC8MWh
Funders realize the wash when I see it. Ustream has been sinking money since 2007. Profitability has not been ustream’s focus. Ustream has cheated it’s funders and lied to it’s users. This is not a company I would do business with in the video bandwidth market.
Most of Ustream’s big $75m Softbank funding never came http://t.co/0Z79qTIY
Most of Ustream’s big $75m Softbank funding never came
http://t.co/6qULnSIf
Most of Ustream’s big $75m Softbank funding never came http://t.co/cpOIATxE
Most of Ustream’s big $75m Softbank funding never came http://t.co/mzWvarl8
Most of Ustream’s big $75m Softbank funding never came: Brad Hunstable shows off Ustream’s Honeycomb app… http://t.co/geavaRpX #gigaom
Most of Ustream’s big $75m Softbank funding never came http://t.co/NGZFUoVA
Most of Ustream’s big $75m Softbank funding never came http://t.co/lh4NlMs2
Most of Ustream’s big $75m Softbank funding never came http://t.co/RKaOPyTK
Most of Ustream’s big $75m Softbank funding never came: Brad Hunstable shows off Ustream’s Honeycomb… http://t.co/7Vzm4zPj via @gigaom
Most of Ustream’s big $75m Softbank funding never came http://t.co/yAEEcPyP
Interesting: GigaOM: Most of Ustream’s big $75m Softbank funding never came http://t.co/p2YRrrO7
곧 한국에서도 온라인 TV컨텐츠를 볼수있겠군요. 코리안 텔레콤은 SK텔콤? RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/1Zt7qaqT
@justblaze a pioneer of #uStream RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/f50IbZTM
Most of Ustream’s big $75m Softbank funding fell through http://t.co/fY2TOxfG
Most of Ustream’s big $75m Softbank funding never came — GigaOm http://t.co/9BDGcK8I
RT @flipboardbiz: RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/UqfVyrEd
RT @flipboardbiz: RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/UqfVyrEd
KT의 Ustream 투자. 어떤 biz rationale? Most of Ustream’s big $75m Softbank funding never came http://t.co/mkPiXFzU
Most of Ustream’s big $75m Softbank funding never came http://t.co/RH85UPAS
RT @flipboardbiz: RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/UqfVyrEd
Most of Ustream’s big $75m Softbank funding never came http://t.co/0Gh68Hyo
RT @gigaom: Most of Ustream’s big $75m Softbank funding fell through http://t.co/NLrgT66i
RT @gigaom: Most of #Ustream’s big $75m #Softbank #funding never came http://t.co/FRTZViRl
Most of Ustream’s big $75m Softbank funding fell through http://t.co/fY2TOxfG
Most of #Ustream’s big $75m #Softbank funding never came http://t.co/QIDM99fB
RT @iptvtwit: Most of #Ustream’s big $75m #Softbank funding never came http://t.co/81DFKLIy
RT @NewTeeVee: Most of Ustream’s big $75m Softbank funding fell through http://t.co/U481R7Qt
Most of Ustream’s big $75m Softbank funding never came as Softbank hedges… – http://t.co/NGQj92LB
ustに出資金払ってない、らしいSoftBank。#softbank / “Most of Ustream’s big $75m Softbank funding never came — Online Video News” http://t.co/A6QyRNwa
これですか、日本人の感覚だからソフトバンクがひどいよ～に感じるだけで、韓国じゃふつ～みたいなので、文化の違いかもですねぇ ¦ Most of Ustream’s big $75m Softbank funding never came http://t.co/lwjUElqz
Most of Ustream’s big $75m Softbank funding never came — Online Video News http://t.co/eejNBYQG
投資するぞーと大声でリリースしてちまちまやる作戦はもはや定番なのか… http://t.co/oXNjPyA0
investors in ustream would be smart to ditch both the founders— liars and swindlers from the word go. you cannot believe a word that comes out of their PR room, as most of it is written by the founders.