Israeli video-sharing site Metacafe Ltd. has raised $5 million in an internal round from Accel Partners, Benchmark Capital, DAG Ventures and Highland Capital Partners, according to a filing with the US Securities and Exchange Commission (SEC). The company plans to raise an additional $1 million in debt, options, warrants and securities.
Metaface has raised $55 million to date, including the current round.
Metacafe was founded in 2004 by Eyal Herzog, Ami Avrahami, Arik Czerniak, and Ofer Adler. Although the company preceded YouTube, which was acquired by Google Inc. (Nasdaq: GOOG), Metacafe has to compete against YouTube's popularity, as well as with Facebook and online video service Hulu. According to Comscore, Metacafe has 14 million unique monthly US visitors, mostly 18 to 34-year-olds.
In the face of rising competition in the video-sharing market, Metacafe has been refocusing on cinema and entertainment video content, such as movie trailers, exclusive behind-the-scenes clips, and 3D cinema content.
A few days ago, Metacafe COO Yaron Finkel, announced that he is leaving the company.
Published by Globes [online], Israel business news - www.globes-online.com - on June 8, 2010
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