MetaCafe Lands $15 Million in Second Funding Round

Jul 5, 2006  •  Post A Comment

Video-sharing Web site Metacafe snagged $15 million in its second round of funding, the company said today. The cash infusion will be used to open a new headquarters, invest in marketing and pay video creators.

The round was led by new investor Accel Partners and also included additional funding from existing investor Benchmark Capital. According to Nielsen Net Ratings, Metacafe was the 10th ranked video-sharing site in May, luring 1.9 million unique monthly visitors. Those viewers stream and download more than 400 million videos each month on the site.

Metacafe said it has increased revenue tenfold since the start of the year. That growth is due to the fact that the site recently began ramping up advertising, the company said.

Also in the online video world, video Web-search firm Pixsy has received a first round of funding, according to Paidcontent.org. The amount was undisclosed.