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Boxee Raises $6M for Content and CE Devices

boxee_logoOpen-source media center Boxee announced this morning that it has raised $6 million in a Series B round of funding led by General Catalyst Partners with participation by prior investors Spark Capital and Union Square Ventures. This brings the total amount Boxee has raised to $10 million, following a $4 million round in November.

Boxee CEO Avner Ronen told us that the company raised the money now to keep up with interest in the product. The company originally thought CE device makers wouldn’t be interested in Boxee until 2010, but evidently those hardware companies are a little ahead of schedule. “What we’ve seen over the last two to three months is increased pace from the biz dev side,” said Ronen. The company will use its newfound funding to bring on additional staff to get more content on the platform, port Boxee over to consumer electronics devices, and bring on engineering to build out its app section.

Earlier this summer, Boxee signed MLB.TV as an official content partner, and added Digg and Tumblr integration to its platform. Boxee has proven itself popular with the tech set, and now it needs to move more into the mainstream. If Boxee can secure the content people crave on the devices they want, it could be the glue of the digital living room. There are a lot of “ifs” in there, however.

Ronen says he plans to grow the company from 11 to 20 people over the next few months. Already he’s brought over Boxee’s outside PR consultant, Andrew Kippen, to be the company’s first VP of marketing (actually its first marketing person at all).

13 Responses to “Boxee Raises $6M for Content and CE Devices”

  1. Hi,

    Without personally knowing anything specific about boxee, i think the obvious business-model beyond “affiliate-sales” is more likely simple UI-Licensing and Gatekeeping in the way NewsCorp. uses NDS (, what divx does,) and what iTunes did to music-publishing!

    By doing the aggregation, and beying technically lightweight without being heavily proprietary, Consumer Electronic manufacturers would be quite happy to pay a nominal cost per unit to off-load all the contract negotiations with content-providers, and having a standardised well-received UI available, rather then the current range of ad-hok deals done by the likes of Panasonic for VieraCast, Xbox, Netflix, etc.

    Well, that’s what I’ve wanted to see for over a decade in anticipation of the coming future!

    Kind regards,

    Shakir Razak

  2. timekeeper


    Looks like lots of risk on the $10M.

    Also, if they raised $4M with 11 people their burn is ~$365K per person in less than a year.

    Bump that to 20 people and that $6M is gone almost as fast as it came in. The need revenue or someone to buy the company to make this business make sense.

    It’s a cool tool/aggregator but I still don’t see a business.


    PS> Come on Chris, dig deeper than their press release for the good story.

    • Chris Albrecht

      C’mon timekeeper. You should know that I’ve written my fair share of criticism of Boxee.

      When I’ve spoken with Ronen before, he said the company could coast at least throughout this year with their initial funding. Boxee is feeling the heat as others start to get in this space. If it wants to be a player it needs the funds to do so.

    • Chris Albrecht

      Who needs a biz model?

      In the past, Ronen has talked about affiliate sales (purchase movies and songs via boxee). But hasn’t gone much further than that.