Metacafe Raises $30 Million Third Round For Global Content Expansion

Video-sharing network Metacafe has raised $30 million third-round financing in the race for YouTube’s coat tails, led by all-new investors. Highland Capital Partners and DAG turned up to lead the round, while previous investors Accel and Benchmark were also involved. Metacafe, in a release, said the money would be used to support “continued global growth”, suggesting it may add new national versions and languages to the seven territories it caters to now. The company said it would expand the breadth of its content through striking YouTube-like partnerships with established media companies and growing its Producer Rewards program, which gives the most popular video producers cash based on $100 for every 20,000 views.

Co-founder Arik Czerniak “will step away from day-to-day operations to pursue other entrepreneurial endeavors” but will remain a board member; Czerniak had previously stood down as CEO in February to make way for ex-EA SVP Erick Hachenburg. Metacafe saw strong growth in the first half of the year, adding 10.1 percent more worldwide visitors between April and May, according to comScore, but Dailymotion remains ahead in the U.S.