Redlasso is proving that a digital media startup can survive (and perhaps even thrive) even after being sued by a group of big media companies. Lawsuits from NBC and Fox shut the online video news clipping service down in mid-2008; Redlasso settled, then sealed a deal with Fox to get access to video from its local TV stations. Now, the Philadelphia-based startup has added $1.25 million worth of a $2 million round of funding; local real estate exec Daniel Keating III led the round, according to peHUB, with participation from previous investors Guggenheim Venture Partners and Osage Ventures (the SEC filing is here).
CEO Al McGowan tells peHUB that the startup will be able to “break-even” after this new round of funding — since it has reduced expenses. Redlasso says it’s starting to gain ground with local content providers (like the Fox affiliates), and deals are coming down the pike.