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SundaySky raises $9M to generate interactive videos on the fly

SundaySky, a company that generates sales videos for e-commerce, real estate and travel sites, announced today it has raised $9 million in its second round of funding.

SundaySky produces interactive videos for various e-commerce products on sites like Overstock.com to provide another form of interaction for consumers. The idea is that consumers are always interested in seeing videos, so adding a product-specific video to go along with product information will give shoppers more incentive to buy something, said Mitch Praver, President of SundaySky.

Today, SundaySky generates videos for various products or sites on the back-end — meaning that once the company detects an update in price, the video associated with that product is recompiled and a new one is posted to the site. The process is automatic, but not done entirely in real-time.

That’s where part of the venture capital funding comes in. The funds will be used to continue development of its real-time video service that generates and streams a new video when a shopper calls it up on the site. With the new service, new videos will be generated with the exact price or quote that a shopper sees on the site.

“With traditional video usage, it’s really expensive and it’s out of date the moment you post it,” said SundaySky co-founder and chief technology officer Yaniv Axen. “Because SundaySky updates in real-time, you get a nice (search engine optimization) boost, and they typically jump to the top of organic search results.”

The funds are also going to be used for marketing SundaySky’s technology to other potential customers. The company currently provides service primarily to real estate and e-commerce sites like the History Channel and real estate site Sawbuck, Praver said.

The current product provides customers with a web-based interface to customize their videos — so all the compiling and packing is done out of sight and out of mind. The video processing is currently done on Amazon’s EC2 cloud infrastructure to try to minimize the cost of the service, and then pushed out through a content delivery network like Akamai.

The New York, N.Y.-based company was founded three years ago and raised $8 million in its first round of funding from Carmel Ventures and Globespan Capital in January last year. This latest round was led by Norwest Venture Partners.

SundaySky currently has 50 employees in its New York headquarters and a technology center in Tel Aviv.