SUNNYVALE, Calif.--(BUSINESS WIRE)--Kontiki, the leading provider of enterprise video solutions, today announced the completion of a $10.7 million Series B funding round led by MK Capital and joined by New World Ventures and Cross Creek Capital,® an affiliate of Wasatch Advisors. Kontiki, which counts among its customers many of the world’s largest companies in the financial services, retail, technology, telecommunications and manufacturing market sectors, will use the funds to expand its product development, sales and marketing programs - capitalizing on one of today’s fastest growing enterprise IT markets and the consumerization of video in the enterprise.
“We are pleased to announce the completion of this important round of funding for Kontiki. Kontiki’s market leading Enterprise Content Delivery Network (ECDN) allows every enterprise to ‘video enable’ their entire global workforce. Our SaaS-based solution is truly a breakthrough – it completely changes the economics of enterprise video networking relative to hardware-based approaches and allows businesses to deliver this important communications medium to all of their employees,” said Eric Armstrong, president and CEO, Kontiki.
Enterprise video delivery solutions are a part of a multi-billion dollar industry. Gartner expects that video as a whole will represent at least two-thirds of network traffic in "Type A" (early adopter) organizations by 20151. Leading enterprises are in the process of building a “video culture” to reduce travel costs and, more strategically, to align the organization for competitive advantage by leveraging the most effective form of corporate communication.
Offered in a SaaS-based model, Kontiki’s unique Enterprise Content Delivery Network overcomes the obstacles of reaching workers in even the most remote office or distributed environments and makes it practical for organizations to introduce or extend the use of live video, video on-demand (VOD), video conferencing and telepresence, as well as a new breed of social video networking that the millennial generation demands. According to a recent survey by analyst firm Aberdeen, 41% of respondents intend to build user-generated video community and social networking options around video in the next 12 months. Kontiki completes its portfolio with the supporting analytics, content management, security and network management tools required by IT.
“Business leaders are reporting real ROI through their strategic use of video and we see this as one of the most important IT trends to watch today,” said Adam Koopersmith, Partner, New World Ventures. “We chose to invest in Kontiki because we believe its cloud-based technology and market timing have come together perfectly to take advantage of the exciting market for video in the enterprise.”
“The growing use of video in the enterprise inevitably creates the need for Kontiki's software-based distribution engine, since corporate networks were not architected for video and cannot handle the load from video, particularly in remote offices where the need for communication is greatest,” said Kirk Wolfe, Partner, MK Capital. “We believe the Kontiki solution is highly disruptive to current hardware-based alternatives in the market given its superior scalability, ease of deployment, and cost.”
About Cross Creek Capital® - an affiliate of Wasatch Advisors
Wasatch Advisors’ private equity affiliate, Cross Creek Capital, is a venture capital fund focused on late-stage private equity investments in what it believes are the best-of-breed public companies of the future. Wasatch Advisors’ experience in evaluating small public companies gives it unique insight into evaluating late-stage private companies. Cross Creek Capital leverages the knowledge and skill of the broader Wasatch Advisors research team in its investment decisions.
About MK Capital
MK Capital is an established venture capital firm with offices in Chicago and Los Angeles. MK Capital invests in emerging companies that fall into the categories of digital media, software, data center automation, and education technology. Its digital media companies generate unique content, provide differentiated infrastructure, or deliver value added services. MK Capital leverages deep operating experience and sector insights to collaborate with its portfolio companies on strategy, operations, and technology while growing enterprise value. Visit www.mkcapital.com for more information or follow the firm on Twitter at twitter.com/mkcapital <http://www.twitter.com/mkcapital> .
About New World Ventures
New World Ventures, closely affiliated with The Pritzker Group, is a venture capital firm investing in technology companies with exceptional potential and helping these companies become market leaders in their space. New World’s sector focus includes enterprise-focused solutions (e.g. SaaS, telecommunications, IT infrastructure, technology-enabled services) and Internet-driven businesses (e.g. interactive marketing, e-commerce, social networking). New World’s dedication to active investing and its commitment to long-term business building have helped its companies achieve outstanding success. For additional information visit www.newworldvc.com.
About Kontiki, Inc.
Founded in 2000, Kontiki offers an End-to-End Enterprise Video Platform, delivering all of the capabilities you need for a complete Video Communications solution, while ensuring absolute security and control over your network and content. From Live Video Webcasting and Video On-Demand to an Employee Video Portal with Social Media capabilities, Kontiki gives you the ability to build a video culture and align your organization, in the most engaging and effective way possible.
Offered as a Software‐as‐a‐Service or Software License solution, Kontiki’s technology is unique in the market in that our customers can securely deliver high‐quality video to all employees globally, without deploying any networking or caching hardware. Learn more about us at www.kontiki.com.
1 Publication Date: 3 December 2009 ID Number: G00173005; Predicts 2010: Video, Cloud and UC Services Loom Large in Enterprise Communications; Kathie Hackler, Bob Hafner, Bern Elliot, Daniel O'Connell, Steve Blood, Scott Morrison