Vidyo raises $12M more for high-definition video conferencing

Vidyo is the latest company to offer high-definition video conferencing software, and has raised $12 million in a second round of funding.

It joins a number of other companies challenging the entrenched leader in this area, WebEx, recently bought by Cisco. WebEx owns a third of the market, and Microsoft’s Live Meeting owning a little less. However, WebEx costs $39 per seat, leaving it vulnerable to cheaper options. A younger player is DimDim (see our coverage; scroll down), which also lets you upload presentation files.

Vidyo says it has found a new way to encode video, reducing costs. Its based on the H.264 SVC standard. Vidyo says its video quality is better than competitors.

The company recently changed its name from Layered Media to Vidyo.

The round was led by Rho Ventures, and included existing backers Sevin Rosen Funds and Star Ventures. Vidyo will use the new funds to continue building its products and to ramp up marketing efforts.

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Matt launched VentureBeat in September of 2006, with the realization that no one else was covering the entrepreneurial and tech innovation scene with the velocity or depth that he was. Prior to founding VentureBeat, he covered venture capital for the San Jose Mercury News from 2001 to 2006. In 2002, Matt was awarded "Journalist of the Year" by the Northern California Society of Professional Journalists. Prior to working at the Merc, he was a correspondent for the Wall Street Journal in Bonn, Germany from 1995 to 1998, and a writer for the Washington Post in 1994. Matt holds a PhD in Government and an MA in German and European Studies from Georgetown University. In addition to VentureBeat, Matt is also the Executive Producer of DEMO, the leading launchpad event for emerging technologies.

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