Kaltura Raises $25 Million
Company eyes Asia and plans to expand its presence in the educational technology sector
Back to the funding trough for a fourth time, Kaltura announced today it has raised a Series D round of $25 million to expand its presence in Asia.
"“Kaltura has demonstrated impressive growth," said Lisa Lambert, a vice president of Intel Capital, "with the company continuing to outpace the industry, and we are delighted to continue backing this exciting company."
Intel, which has participated in several preceding rounds, is joined in today's funding announcement by other existing investors—including .406 Ventures, Avalon Ventures, and Nexus Venture Partners—as well as two new investors that focus on the Asia-Pacific region.
Mitsui & Co. Global Investments, headquartered in Tokyo with offices in Beijing and Mumbai, as well as two in the U.S. (New York and Silicon Valley), joins as an investor in this round. With the likes of BlackArrow and RGB Networks in its portfolio, the company was looking for an investment opportunity in educational technology.
“We looked for our first investment opportunity in the EdTech sector and were very interested in joining Kaltura, one of the most prominent players," said Kenichi Kimura, President & CEO at Mitsui & Co. Global Investment, Inc. “We are delighted to join Kaltura and help its expansion into the APAC region."
Kaltura's push into the educational technology, or EdTech, sector has been strengthened recently by an announcement with the 800-pound gorilla of the EdTech space, Blackboard. As the key learning management system (LMS) in most U.S. universities, Blackboard integration is key to any media delivery platform. We've covered those integrations in detail for Accordent, now a part of Polycom, and Sonic Foundry's MediaSite rich media recording and asset management solutions.
"We're excited to bring Kaltura's rich-media capabilities into both Blackboard learning platforms and more markets globally," said Blackboards's Ted Hopper in a press release earlier this month. "This expansion exemplifies our combined and continued commitment to open source technologies – and to adding capabilities for our customers to create engaging content that is shareable and accessible."
Kaltura will have a challenge ahead of it in APAC educational circles, though, as the market is more price conscious than the U.S. market, and—like Europe—is keen on open-source solutions but not yet deeply penetrated by open source hybrid solutions like Blackboard.
ORIX Ventures also participated for Kaltura's Series D round, and the company said Kaltura met its fundamental due diligence process.
"We analyze a lot of companies in the enterprise software space in search of the best investments,” said Jeff Bede at ORIX Ventures, noting the company invests in growth-stage technology companies. “Kaltura clearly stands out with its breadth of offerings, strong customer traction, cross-industry appeal, and overall disruptive vision for the delivery of video in our lives."
Mitsui also pointed out that its investment in Kaltura may yield benefit outside the EdTech segment.
"The fact that Kaltura is a leading provider beyond education – in media, enterprise, and government – makes this even more exciting for us," said Kimura.
With the closure of the Series D round, Kaltura has seen more than $68 million in total investment, including a $20 million Series C round in early 2011.