Top Chinese internet video site Youku has raised $40 million in a funding round — and says it is in “active” discussions to add $40 million more. The video sharing site says it raised the cash in a round led by Chengwei Ventures; Brookside Captal, Maverick Capital and Sutter Hill Ventures also participated. The funds will be used to “syndicate professional media,” “produce Web-based content” and to pay for R&D.
It comes as money continues to rush into the Chinese video market, which is less consolidated than in the U.S. Late last month, Shanda (NSDQ: SNDA) purchased user-gen video site Ku6.com in a deal worth as much as $50 million. Rival site Tudou, meanwhile, raised $57 million in a round in April 2008, while yet another competitor, 56.com, has raised $30 million in funding.
Youku says it is growing rapidly. The company says more than 200 million unique users visited its site in October and says revenue this year will pass $29 million.
With the new cash, Youku will have now raised $110 million in venture capital. It last raised cash in June 2008 when it got $40 million in a round, along with a $10 million equipment loan. More in the release.