Straight on the heels of introducing a new feature that could cut cloud-based encoding time in half, Encoding.com has raised a Series B round of financing worth $2 million. The funding round was led by Marc Michel, managing partner of Metamorphic Ventures, and included existing investors Rackspace (s rax) Co-founder Patrick Condon, Rackspace CTO John Engates and Simulmedia CEO Dave Morgan.
The funding comes just about a week after Encoding.com announced a new feature called Instant Encoding that begins the process of transcoding files as soon as they begin uploading. Depending on the size of the file, that could reduce the time it takes to encode by as much as 100 percent, Encoding.com claims.
But the real money might be in its new universal URL service called vid.ly, which Encoding.com first launched in January. While vid.ly is still in beta, it allows customers to encode a file using its cloud encoding service and have a single URL that will automatically serve the correct formatted video to whatever device tries to view it.
Encoding.com isn’t the only cloud-based encoding vendor to raise money recently. Competitor Zencoder announced a $2 million funding round last week that included Andreessen-Horowitz, Ignition Partners, SV Angels, Lowercase Capital, Founder’s Collective, 500 Startups, and individual investors such as Matt Cutts, James Lindenbaum, Orion Henry, Adam Wiggins, Wolfgang Buehler, Mike Bollinger and Neil McClements.