Animoto Eyes Mobile On $25M Investment

Cloud-based video platform Animoto has raised $25 million led by Spectrum Equity Investors with participation from existing investors Madrona Venture Group and Amazon.com. In turn, the start-up "is ready to invest heavily in its growing business," according to GigaOm.

Animoto is a freemium service that lets users create short video slide shows with the pictures and videos they have stored on their computers or mobile devices. "If they want more features, such as custom templates or longer videos, users have the option to pay a small one-time fee for individual slide-show creation or a subscription for an unlimited number of slide shows," GigaOm explains.

"So far, that model has been working pretty well." Indeed, Animoto has more than 3 million users, who together have created about 15 million videos. To expand its user base further, the company plans to develop mobile apps, which forging partnerships with third-party photo- and video-hosting sites. Bigger picture, Animoto wants to make it easy for consumers to create and share slide shows with friends.

Read the whole story at GigaOm »
Tags: video
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