SplashCast, a company that creates video widgets for musicians and others to promote themselves, has raised $4 million in a first round of venture funding.
Chief executive Michael Berkley describes SplashCast’s widget as a “programmable television set” for social networks, to which clients can stream multiple channels of content (see screenshot below). The Portland, Ore.-based company has some major media players on its client list, including Sony/BMG, Universal Music and MTV. It stands out from other widget makers because of the interaction it allows with users — not only can fans submit their own videos to be broadcast on the widget’s “fan channel,” they can also chat with other fans viewing the widget across different sites. (Read our thoughts on how widgets are affecting the music industry here.)
SplashCast raised the round in two stages, with the initial $2 million coming in 2007. Berkley says he plans to use the money to expand SplashCast’s eight-person staff. This is a crucial time for growth, Berkley says, because there’s a “land grab” going on in the online advertising world, as companies scramble to find new, better ways to engage potential customers, especially those between 13- and 29-years-old. (We’ve reported on big media companies, like CBS, trying to make money from the widget ad world.)
Even more than the amount of the investment, Berkley says he’s excited about lead investor and new board member Mark Bayliss, whose experience includes serving as chief financial officer for Fairfax Holdings, one of the largest media companies in Australia. Over the next six months, SplashCast will try to take advantage of Bayliss’ connections and establish alliances with large advertising companies, Berkley says.
Here’s earlier coverage of SplashCast.
Emergent Growth Fund also participated in the round.
