ADOTAS — OVGuide has received $5 million in venture capital funding and isays it is doing well in tough economic times.
The video directory site said it posted a profited in January and that the funding, provided by Baroda Ventures LLC, will be invested in engineering resources for its search engine for both short- and long-form online video.
“This is a strategically significant investment from Baroda Ventures, considering the economic climate and that many companies in the online video space are struggling to find a solid revenue model,” said Dale Bock, president and founder of OVGuide.com. “OVGuide.com has dedicated substantial time and effort into developing the most powerful search engine for online video. We have a very lean and highly talented team developing a great product, a large user base and growing revenue stream. We will use the funds strategically to continue development of our product and maintain our leadership position in online video search and discovery.”
OVGuide reaches 2 million unique visitors in the United States and nearly 5 million worldwide each month, according to comScore.
The video portal categorizes online video content and its editors make independent recommendations to users.
“OVGuide.com is a very strong example of a Web 2.0 company that offers significant and immediate benefits to the Internet consumer,” said David Bohnett, chairman of Baroda Ventures and CEO of OVGuide.com. “The company has built a very large user base, has a solid revenue model and directs a large volume of traffic to many leading online video sites. There will be consolidation in the online video space and OVGuide.com is well placed to be one of the successful players in this industry.”
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