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Sunday, November 8, 
3:24 pm

VC Rating: Motionbox

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Company: Motionbox
Description: Online video sharing
Competitors: YouTube, Google Video, Grouper, Revver
Location: New York City
Amount Raised: $4.2 million
Round: First
Date Announced: 9/6/06
VC Firms: Canaan Partners, SAS Investors, Itochu Corp.
VC Directors: Warren Lee, Josh Grotstein, Derek Idemoto
Quick Take: When will the madness stop? Canaan Partners, SAS Investors and Itochu are only prolonging the overinvestment into online video sharing startups with this deal. The only way a newly funded online video sharing startup will be able to create value in a segment with more than 200 competitors is by offering a radically different business plan or technology. Motionbox does offer a useful editing function that allows you to share with a friend just a portion of an uploaded video, but that improvement isn't enough to merit this investment.

Technology (1 out of 10): 6
Market: 3
Management: 3
Chances for IPO: 1
Overall VC Rating: 2

For more on Motionbox's funding, see:
Reuters
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Nathaniel Brown

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