Metacafe Takes In $30 Million Funding Series C

Posted Aug 22, 2007

Metacafe has over 25 million unique views per month. And yesterday the company officially announced that they have officially raised $30 million in Series C from Highland Capital, DAG Ventures, Accel Partners, and Benchmark Capital. While YouTube dominates traffic for online video, it seems that Metacafe has a more established business model since users are actually rewarded financially for their creativity.

“Metacafe is defining the next generation of online video, moving away from simple video sharing and hosting to delivering an exceptional entertainment experience for short-form content, said Richard de Silva, Partner, Highland Capital Partners. â??Its sophisticated approach to audience-driven programming is unique in the industry.”

With this round of funding, Metacafe plans on supporting continuous operations and developing the Producer Rewards program further. The Producer Rewards program gives users a financial incentive to develop intriguing video content. For every thousand views a video gets on a site, the user will receive $5. The video has to reach a minimum of 20,000 views.

Highland Capital Partners’ Richard de Silva and DAG Ventures’ Tom Goodrich will join Metacafe’s Board of Directors. Metacafe is privately headquartered in Palo Alto, Calif. and has offices in Tel Aviv, Israel and NYC, NY.

[1] alarm:clock: Video Site MetaCafe Hammers $30M Round