Envivio Files For $69 Million IPO, Targets Sales, R&D

MobileTV

Broadband video provider Envivio has filed with the Securities and Exchange Commission to raise up to $69 million in an IPO. The company's technology powers live and on-demand video for telecom providers, cable and satellite TV operators and content publishers across PCs, tablets, mobile phones and TVs.

San Francisco-based Envivio reported revenue of $30 million in its fiscal year ending January 31, 2011, nearly double the $16.3 million it brought in during the prior year. The company's net loss was $2.5 million -- down from $9.2 million in fiscal-year 2010 -- and it has an accumulated deficit of $79 million.

Founded in 2000, Envivio now provides video services in 55 countries and derives much of its revenue from customers outside the U.S., including France Telecom. The company believes it will continue to benefit from growing demand for what it terms "TV without Boundaries."

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"Our solutions are designed to address the infrastructure challenge of delivering massive amounts of content over different types of networks to consumers who are increasingly viewing video on a growing variety of devices," Envivio's S-1 filing states. "As consumer expectations of video delivery increase, the demand from telecommunications, cable, satellite and OTT [Over-the-Top] providers for the type of video delivery solutions that we provide increases."

Competitors in the market include Harmonic Inc., Inlet technologies (recently acquired by Cisco Systems) and RGB Networks. In the risk factors section of its filing, Envivio also points out it may continue to incur losses in the future, and that the bulk of its revenue comes from a small number of customers. Sales from its 10 largest customers in fiscal 2011 accounted for 63% of total revenue.

The company plans to use net proceeds from this offering for general corporate purposes, including further expansion of sales and marketing efforts, R&D investments, and capital expenditures. It also plans to use the capital to hire additional staff -- and potentially, to make acquisitions of complementary businesses or technologies. Envivio had raised more than $30 million over the years from investors, including HarbourVest and Crescendo Ventures.

In a related development, Digby, which provides tools that help retailers build mobile commerce operations, has raised $8 million in a third-round funding led by Battery Ventures and includes prior investors BlackBerry Partners Fund, S3 Ventures and Daylight Partners. AT&T recently teamed with Digby to launch a service to enable retailers to go mobile.

In another mobile-related financing, mobile app analytics firm Localytics landed $2.5 million in a first-round funding led by Launchpad Venture Group and New York Angels, with Hub Angels as a new investor.

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