Online video creation service Animoto today completed a $25 million financing agreement, which the company will use to expand the scope of its product offering.
The financing was led by Spectrum Equity Investors, with participation from existing Animoto investors Madrona Venture Group and Amazon.com. Ben Spero, Managing Director for Spectrum Equity Investors, will be joining the Animoto board of directors as part of the deal.
Animoto currently reports having three million registered users and 100,000 paying subscribers in more than 150 countries worldwide. Its API also is used by Kodak Gallery, American Greetings’ Webshots, Aviary and others who use it as the basis for providing video creation service to their customers.
Brad Jefferson, CEO and co-founder of Animoto, said the influx of investment will enable the company to grow and to realize its potential. “With our rapidly growing and highly engaged user base, Animoto is uniquely positioned to capitalize on the rapid convergence of photos, videos, mobile and the digital living room,” he said.
In the past year, Animoto has added HD capabilities, improved the speed of its video creation service, and upgraded its mobile capabilities. It also created a partner platform that enables third parties to include the service within their own software, web or mobile products.