Digitalsmiths, Transpera close Series B funding

Digitalsmiths and Transpera defied recent economic trends in the online video space and larger venture capital world by securing Series B funding Thursday. Digitalsmiths will receive $12 million from 406 Ventures, Chrysalis Ventures and Aurora Funds, while Transpera will receive $8.25 million from Labrador Ventures and Flybridge Capital Partners.

Digitalsmiths, the Durham-based online video search and publishing specialist, will use the Series B round to establish an office in Los Angeles and to continue technology advancement. Digitalsmiths recently announced its big win of the video assets on TMZ.com, which defected from rival Brightcove. Digitalsmiths was also named to the Dow Jones's 45 companies to watch in 2008.

"If you do take into account what is going on in the larger environment, the kind of stuff we focus on is monetizing video and we paid on performance-based metrics," Digitalsmith's CEO Ben Weinberger said. "So we're not making money if clients don't make money."

Transpera, which focuses on mobile video advertising, planned to use the funding to expand its product line and add service customers. The Santa Monica-based company powers the mobile monetization of video assets for Fox Interactive, break.com, MTV Networks and the Travel Channel.

"We're proud to have earned the respect of so many valued brands and the trust of those who have invested in our company," said Frank Barbieri, founder and CEO of Transpera, in a prepared statement. "All indicators are that trying economic times lie ahead, and partners should rest assured that Transpera has the momentum, experience and now the capital to help them succeed for the long run."

Venture capital could be increasingly hard to come by as 2009 approaches, so kudos to both Digitalsmiths and Transpera for their big wins. The funding will help drive expansion and innovation in the space, and could even reinvigorate capital investment in online video if the firms do well with the infusion of cash. 

For more:
- see the article about Digitalsmiths
- see the Transpera release here 

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