Well, apparently Animoto is going for it. This jewel of a startup, which lets people easily create professional-looking videos from audio and video clips and pictures, has raised a third round of funding – $25 million in a round led by Spectrum Equity Investors.
Ben Spero, a managing director at Spectrum, joined the Animoto board of directors.
That brings the total raised by Animoto to $30 million.
If they were going to go for the easy sale, any time in the last year or two would have been a good time. This round signals that Animoto is going to go it alone and see if they can turn it into a very large company. My guess is that part of the round was taken off the table by founders/execs, which is often a risk mitigation move and can align the risk tolerance of investors and founders.
Animoto won’t comment on whether any or all of the round is secondary.
The company has been profitable since 2008. 700,000+ videos are created per month, over 15 million have been created since the company launched five years ago. There are 3 million registered users (they had 1.75 million this time last year), and 100,000 of those users, including me, pay for the service.
(Tat tip on the use of the classic “in it to win it” in the title of this post to Skype’s PR team)