Ustream, a Silicon Valley startup that specializes in Internet video streaming services, on Tuesday announced it had secured $75 million in second-round funding, topping a flurry of venture capital deals this week for valley companies involved in a range of technologies.
Others raising fresh dollars include Coulomb Technologies, a Campbell startup that raised $14 million as it rolls out charging stations for electric vehicles; SpiderCloud Wireless, a Santa Clara company that raised $25 million; Gigamon Systems, a Milpitas-based data center management firm that raised $22.8 million; and Yammer, a San Francisco startup that raised $10 million to advance its workplace communication tools. A sixth, smaller funding announcement is expected later this week for a startup developing a payment system for online goods.
While unemployment remains above 11 percent in the region, the financial activity reinforces signs that the valley is recovering from the recession. After two frigid years for initial public stock offerings, valley business mavens are also encouraged by startups that have filed documents with the Securities and Exchange Commission for Wall Street debuts, highlighted by Tesla Motors’ filing Friday.
Emergence Capital partner Jason Green, who led his firm’s investment in Yammer, said startups that show strong business traction are receiving multiple investment offers, while early-stage startups continue to struggle for scarce dollars.
“The rising waters are not lifting all boats,” he said.
While YouTube ignited the Internet video age, startups like JustinTV and Ustream have popularized live feeds. Ustream, based in Mountain View, is known for facilitating live video feeds of everything from the presidential campaign events of Barack Obama to Webcam shots of puppies so virally adorable that they have attracted more than 19 million viewings.
Ustream also boasts that 3.8 million viewers last year watched Obama’s inauguration over its service, and more than 3.4 million watched the live red carpet preshow of the American Music Awards. Ustream said its iPhone applications have been downloaded more than 1.5 million times.
The company said it will use the $75 million investment, led by Softbank in Japan, to expand its services in the United States and in Asia. While much of the funding will be used to ramp up operations in Asia, “we are definitely hiring here in the Bay Area,” said John Ham, Ustream’s CEO.
Ustream raised its first funding round of $11.1 million from valley venture firm DCM in spring 2008. Ham declined to disclose the size of the company’s work force or details about its revenues.
The new funds will be used “to accelerate our growth and continue to land grab,” Ham said.
Revenues are earned from ad support on its consumer-oriented Ustream service, and by subscriptions on its business-oriented Watershed product.
Contact Scott Duke Harris at 408-920-2704.