Some time between this past Christmas and New Year's Eve, the online video sharing segment suddenly fell off a cliff.
Before that moment, Enterprise Partners Venture Capital and Mission Ventures participated in a second round of funding for vMix, an online video sharing startup. They may already be ruing their decision.
If they believed strongly in the company, why didn't they invest more? The amount invested was not disclosed, which must be interpreted as a small amount for a second round. The first round was reported to total $4 million. Second, no new investors came into this round, which is only a good sign if the company is doing so well, the VCs didn't want to share. That's not the case here. PaidContent was rightly concerned by the wording of vMix's press release announcing the funding.
vMix's partnerships with blinkx and Fox may be valuable but its traffic has to grow if it hopes to survive. The problem is without any game-changing features or mounds of capital to outspend its rivals, how in the world can it hope to do that?
Technorati tags: vmix, mission+ventures, guba, vc, venture+capital
Continue reading below
I expect to see more deadpool entries. It is sad but despite what Mike Arrington says, i think startups must focus on the business end of things:
A detailed point by point analysis here:
http://mediavidea.blogspot.com/2007/01/web-20-gets-pied-piper-in-cheerleaders.html