Elemental Technologies is building a war chest.
The Portland startup, which makes video encoding software that enables broadcasters to stream their material online, plans to announce today that it's raised $13 million in additional venture capital.
It's the company's third funding round, led by
and joined by Elemental's prior backers.
Elemental now has $19 million in the bank, according to chief executive Sam Blackman. It plans to begin drawing on that stash, adding engineers and sales personnel to introduce its technology to broadcasters around the world.
"We really feel like we have an opportunity to grow very, very fast," Blackman said. "The only thing that's keeping us from growing faster is awareness."
Elemental is one of the last descendants of Oregon's once-flourishing electronic display industry.
in 2006.
Founded
: 2006
Product
: Encoding software to adapt video for broadcast online.
Employees
: 70, including 52 in Portland
Funding history
: Raised $29.6 million altogether, including today's $13 million round led by Norwest Venture Partners. Prior investors General Catalyst, Voyager Capital and Steamboat Ventures all participated.
Financials
: Not disclosed, but Elemental says 2011 revenues were "eight figures" -- at least $10 million.
The proliferation of web video, and mobile devices in particular, have broadcasters rushing to move their programming online. Several foreign broadcasters will use Elemental's software to stream their Olympics coverage this summer.
"The market is really starting to unfold now, and the key is to invest in the business to grow it rapidly, but also rationally," said Bob Abbott, general partner with Norwest Venture Partners.
Elemental faces competition from big networking companies including Cisco, plus video specialists Envivio and Harmonic.
Though his company is young, Blackman points to a blue-chip client list that includes HBO, ABC, ESPN and Comcast. Revenues passed $10 million last year.
Elemental is one of several small Portland technology companies --
,
,
and
are others -- that have attracted substantial venture backing in the past year.
Now, they're all working to build substantial businesses out of their early success. It's been many years since a big new technology company has emerged in Oregon -- and stayed here as it has grown.
Elemental has 70 employees, 52 of them in new offices on Southwest Broadway downtown. Blackman said the company moved into a new building with room to grow, and plans to add 20 more jobs this spring.
The new Broadway location offered another perk, according to Blackman: It's one of the few spots in town where the city encourages, rather than discourages, bright public signs.
So he said Elemental plans to put its logo on the outside to project a powerful image to visiting customers -- and to the city's residents.
"You've got to cast a big shadow. And I think branding a headquarters helps with that," Blackman said. "I want to reinforce that you can build great companies in Portland."
-- Mike Rogoway; twitter: @rogoway; phone: 503-294-7699
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