Streaming video site Ustream has just pulled in a massive new round of funding: $75 million. This second round was led by SoftBank, a Japanese telecom giant. Previously, the site had raised just below $13 million in funding, which came from its Series A in 2008 and its angel round in late 2007.
Update: While Ustream noted the $75 million number, SoftBank has clarified that they’re investing $20 million now for a 13.7% stake in the company with an option to invest up to $55 million more by 2011 — which would make them Ustream’s largest shareholder with over 30% of the outstanding shares.
Perhaps even crazier is that the service is saying that additional funding commitments are pending from other investors in the U.S. and Asia, so the round could actually be larger than the $75 million when all is said and done. We’re hearing reports that there was quite a bit of competition to be involved in the round, and apparently all the dust hasn’t settled yet.
So why on Earth does Ustream need $75 million+? CEO John Ham says in the release that the money will be used to expand on the other side of the world, particularly Japan (obvious, given the SoftBank involvement), China, Korea, and India. Mobile video is particularly hot in some of the Asian countries where their faster wireless networks allow for more functionality than the comparatively slow ones in the U.S. Ustream will open offices and hire staff in all those countries, apparently.
Alongside this new round, we’re also hearing that the founders of the company, Ham, Brad Hunstable, and Gyula Feher were able to sell some shares as a reward.
Just a few days ago, Ustream launched a new desktop client to help video producers give their work a more professional feel. Prior to that, in December, Ustream made headlines by being the first big video streaming site to offer that (recording) functionality on the iPhone.
Ustream says that its iPhone apps has been downloaded over 1.5 million times to date (it has had other apps before the live streaming one was available too) and notes that 3.8 million people tuned into the service to watch the inauguration of President Obama in January of last year.
Update: SoftBank’s investment appears to put Ustream’s value right now around $150 million. However, if they exercise their options, their full investment in Ustream would push its value to around $230 million.
One word. Wow.
Maybe the economy has turned around..
Looks like you guys got the wrong number – ustream only raised $20 million – the investors reserve an option to raise more…
http://www.networkworld.com/news/2010/020210-softbank-pays-us20-million-for.html
wall street journal also confirms a $20 million dollar raise
http://online.wsj.com/article/SB10001424052748704022804575040442849934242.html?mod=googlenews_wsj
yep softbank clarified – $20 million now, an option for $55 million more by 2011. post updated.
its interesting that every ustream story has some misinformation coming from the principals of ustream themselves. look at the arcive and see so much bad information, rumors that never panned out, acquisition deals that werent true. are they liars?
Streamin’ and storin’ ain’t cheap, yo. Congrats to Ustream.
it seems that they are on the way to go really really big!
GAME OVER. WOW! Thats huge.
the ability to distribute to multiple niche channels on the fly, Ustream Live Broadcaster gets it right.
Nice. Maybe they can spend some of that money to hire people in india to properly pirate tv streams via satellite tv.
It is not surprising, many use uStream daily to their benefits and as a result do not pay for such an application. Funding should be given as it is a fantastic little app that anyone could get.
TheComputingGeek
Congratulations Ustream!!!! This is great news! I look forward to seeing this service grow!
This should shake things up a bit.
I still think Google should buy them.
Maybe they can spend some of that money and get there stupid app to work on my iPod Touch 3G 64GB on firmware 3.1.2. As it stands now, all you get is static and no picture ever.
Ustream sucks for us!!
see link: http://www.youtube.com/watch?v=iklkci5PcUs#
Are they going to use the money to create a website that works with firefox and chrome? I can’t even sign up using firefox…
Our site does work with Firefox and Chrome. I use it every day with both. Feel free to email support@ustream.tv with any issues you’re experiencing and we’ll look into it.
$75 Million Round Streams is souch e big amount.
in my opinion this shoul be less that $50 Million
약 2년전 문화방송 MBC가 방송한 PD수첩이 라는 제목으로 방영한 내용을 보면 [예수교 신천지 증거장막성전(신천지)]이 마치 ,가정파탄의주역, 청소년 가출및 비행조장, 공금횡령,감금,폭행을 자행하는 비사회적, 광신적 종교집단 으로 매도한 방송을 한적이 있었다.
신천지는 예수님이 교주이며 모든것을 예수님의 말씀과 성경에 입각하여 신앙을 하며 건전한 신앙인, 건전한 사회인 으로써 살아가는 것을 원칙으로 하고 있다.
This is the epitome of too much liquidity chasing too few assets. And people wonder why VC returns stink? <– I know, I know, SoftBank isn't a typical VC fund (they're a mobile phone company) but the macro point remains the same.
Ustream is streaming Softbank’s Earning Announcements right now: http://www.ustream.tv/softbankcorp-eng
Btw, Softbank is the main shareholder of hugely profitable Yahoo Japan as well.
why all these monster rounds? twitter, zynga, ustream, facebook?? i thought this was a depression?
meanwhile, everyone else suffers – not fair
WOW… usegen content is usually fairly low quality though, what are they going to recoup your costs with, low CPM run of site pre-roll?
maybe setting up for a quick exit? nahhh….
Wow! That’s a lot of money.
UStream is yet another company, touches lives of lot of people in a daily basis! Congratulations!
Very well deserved!
The website does not reflect the money, and more then likely the money is being used for some covert goverment black project. Kind of sick when you think money like that could be going to help people. The founders on the surface are real nice guys, but when you get to know them you see the sickness thats inside. Take a look at Livestream.com much better product.
Livestream can suck it.
That is surely alot of xXx $ gUaP $ xXx =)
That is awesome!
Taking on Asian faster network smart move
.
geez, this is a monster B round!
I thought this was a bad economy!?!
Congrats to Ustream! Hi to Mazy there, you guys killing it
not sure why anyone would invest so much in a website that is apparently pretty easy to duplicate..