Kaltura Acquires $20M In New Funding

Kaltura kicks off 2011 in high gear, as it announced last February 14 this year’s financing round which amounts to an impressive $20 million. The funding was led by a new investor, Nexus Venture Partners. Others who participated in this round are .406 Ventures, Avalon Ventures, and Intel Capital. Silicon Valley Bank, a technology lender, was also involved in the new funding.

Kaltura, Inc. is the  developer of the first and only open source online video platform, and their CEO Ron Yekutiel shares more about the company in this recent e-interview:

Who are your competitors and how are you different from them?

The alternatives for Kaltura are (1) proprietary online video platforms like Brightcove, Ooyala, thePlatform, KitDigital;   or (2) home grown solutions developed by customers.

Kaltura is the only open-source vendor in the online video platform industry, and as such presents a new best-of-both-worlds alternative between the above ‘buy’ and ‘build’ options.

The main advantages are:

- flexibility & extendibility:  the proprietary systems are closed black boxes that offer only off-the-shelf solutions. Kaltura is a set of open API’s that enables customers to easily modify, customize, and extend their solution and also to tightly integrate it with other systems.

- safety & control: (1) the public availability of kaltura’s code prevents a  vendor lock-in   (2) kaltura is the only vendor that enables customers to also self-host the platform on premise behind their own firewall (all other vendors provide only Software as a Service).

- affordability:  Kaltura’s open-source community edition is available entirely for free.   There is an affordable commercially-licensed alternative to the open-source code that is available with support, maintenance, and development services.  Also – those who wish to host the solution at Kaltura (i.e. Kaltura Software as a Service) enjoy discounted prices that are possible due to our significant economies of scale (over 100,000 users – more than 60 times of that of other propitiatory vendors combined).

- pace of innovation: Kaltura operates a thriving ‘Application Exchange’ that is the home for numerous plug-ins and extensions that are created by other companies and developers. Kaltura’s community already includes more than 10,000 members, probably 50 times more than the entire R&D force of all other proprietary vendors combined.

What percentage of your marketing budget are spent on the following?

A.      Advertising – 5%  (open source distribution achieves that w/o money)

B.      Social Media Marketing –   5% (open source distribution achieves that w/o money)

C.      SEO – 5% (open source distribution achieves that w/o money)

D.      PR – 5% (open source distribution achieves that w/o money)

E.      Direct Marketing – 80%  (conferences, webinars etc…)

What marketing tactic has given you the highest ROI?  What percentage ROI do you get back on this?

Mainly webinars. An ROI that is easily greater than 1000.

What do you plan to spend your new funding on? Product development?  Marketing?

Mainly growing our sales, marketing, and professional services team due to high demand in market. Our R&D is already supported by a huge community, and marketing is addressed strongly by the open-source approach.

If you are the CEO, what are your biggest challenges?

- Rapid growth

- Striking the right balance between promoting free open-source and paid commercial offerings.

How many employees do you have?

150

When were you founded?

2006

How much did you revenue increase(if any) this year over last year?

400%

For more information about their recent funding, you can check their press release here.