OVGuide.com raises $5M, shows profit in Jan.
OVGuide.com, the most trafficked online video guide, announced that it is now profitable and that it closed $5 million in additional funding from Baroda Ventures LLC. OVGuide.com plans to use the funds to further develop its search engine technology and recommendation functions, according to a press release.
OVGuide.com developed its search feature in-house, and claims it delivers the best quality searches for online video content on the Internet. It's recommendations are derived from an algorithmic process and coupled with human editorial oversight for a more comprehensive and useful process than either method alone, according to the company.
"This is a strategically significant investment from Baroda Ventures, considering the economic climate and that many companies in the online video space are struggling to find a solid revenue model," said Dale Bock, president and founder of OVGuide.com. "OVGuide.com has dedicated substantial time and effort into developing the most powerful search engine for online video. We have a very lean and highly talented team developing a great product, a large user base and growing revenue stream."
OVGuide.com's success story is an important one for the online video industry, as it demonstrates a successful revenue model that is secondary to actual viewing of online videos. As more firms successfully monetize the gigantic online video audience, the industry develops and synergies emerge, leading to more cooperation and ultimate survival of online video companies.
- see the press release here