Veoh getting $30 million investment from Intel and Adobe

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NewTeeVee is reporting that someone new has stepped up to pay Veohs bandwidth bills as it figures out its business. The Internet video portal and software maker is announcing today it has raised $30 million from Intel Capital, Adobe Systems Inc., and Gordon Crawford, senior vice president of Capital Research Global Investors.

Veoh now has $69.5 million in total investment from these three plus previous investors Shelter Capital, Spark Capital, Goldman Sachs, Michael Eisners Tornante Company, Time Warner Investments and Jonathan Dolgen. The Los Angeles-based company reports 28 million viewers per month, spending an average of more than 100 minutes per month.

Just last Friday Veoh cut off access to its site from all but 33 countries, citing reorganization of resources and making us wonder what the problem was. Yes, its costly deliver video internationally, and its hard to make ad revenue back on it. But why drop an existing service and show that weakness? Today, Veoh isnt ready to admit its let go of anything. In a press release about the announcement, the company was still plugging itself as one of the top global Internet television services.

The company has experimented with software versions of its service, but currently seems to be only talking about its portal. A spokesperson told us this week We have a number of meaningful new product additions and ad targeting enhancements on our road map, and were actively working to further expand our technology services beyond the PC.

Peter Kafka at SAI whos been tracking this round for awhile says it values the company at $120-$125 million pre money) The funding comes as Veoh cut off users in several countries, bringing itself down to around 33 markets. The company will use the funding to expand its offering, impprove its monetization efforts and do more with video discovery.
The company reports that it has accumulated 28 million viewers who spend on average more than 100 minutes each month on the site. These are respectable numbers, although they pale compared with YouTube. The Google-owned site boasts more than 300 million users worldwide.
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