Velocity Interactive Group, the newly formed digital-media investment firm announced Thursday it will invest $10 million in Broadband Enterprises, an online video ad network.
The one-month-old investment firm, headed by former AOL CEO Jonathan Miller and former Fox Interactive Media president Ross Levinsohn, said it looks to back talent and online video production companies. Miller will take a position on the board of directors for Broadband Enterprises, which will continue to be managed independently.
Broadband Enterprises specializes in online video syndication, original content creation and online video ad sales. According to comScore data the network serves videos to more than 45 million U.S. unique viewers per month.
This strategic investment highlights the... value of our company, said Matt Wasserlauf, CEO, Broadband Enterprises. The company released Vindico last year, an ad serving technology platform built specifically for online video. Some of its clients include American Express, AT&T, Honda, McDonald's and Procter & Gamble.
Levinsohn said Velocity chose to make its first major investment in Broadband Enterprises because of its diversified approach.
Video is going to play such an important role on the Web, and they touch every aspect of the business, he said.Clearly Outside of MSN, Yahoo and maybe MySpace, they are a leader in all these disciplines.
Meanwhile, Wasserlauf said that the infusion of capital will allow the company to further its ambitions in creating original content, as well as building upon its sales force.
It's going to accelerate everything we're doing, he said.