Video ad network YuMe announced today that it has reached profitability and added a big new financing round worth $25 million. The new funding was led by Menlo Ventures, with existing investors Accel Partners, Khosla Ventures, BV Capital and DAG Ventures also participating. Along with the new cash, YuMe will add Menlo Ventures managing director Shawn Carolan to its board of directors.
According to comScore (s SCOR), YuMe tops all ad networks with more than 1.2 billion in-player video streams delivered per month, and it is consistently in the top five for video ad networks according to potential reach. In addition to the company’s ad network, YuMe also operates a platform called ACE that provides rules-based ad performance management, allowing publishers to better monetize their video assets by bringing in a mix of ads from their own ad servers, as well as multiple other ad networks.
It’s that mix of serving publishers and advertisers that has helped it to increase revenues 6x over the past year and reach profitability in a difficult market. YuMe’s ACE platform serves multiple major video publishers, such as MSN, Fox News, Glam Media, Funny or Die and IDG Entertainment. On the advertiser side, YuMe has worked with major brands like Land Rover, Unilever and BlackBerry.
YuMe also has the advantage of being able to serve ads across multiple platforms — including mobile devices and Internet-connected set-top boxes — as well as being able to dynamically serve ads into live streams. Altogether, YuMe says it served an average of 30 million in-stream video ads per day in December.
YuMe is not the only video ad company to raise money in recent weeks. TidalTV announced yesterday that it closed out a $16 million financing round, which included cash from Comcast (s CMCSA) investment arm Comcast Interactive Capital. And Brightroll wrapped up a $10 million funding round just two weeks ago.
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