In a world where most startups choose gaining users over making money, Animoto is an odd exception: It's doing both. Since launching in August 2007, the company has signed up some 750,000 users, and some 10% of those are paying customers. And that's allowed the company to run cash-flow positive since December of last year, CEO Brad Jefferson tells us. And it could keep going on like that, but like most startups that taste success, it wants to do more.
So it has raised by far its biggest round of funding to date, a $4.4 million Series B led by Madrona Venture Group. With an already proven business model, Jefferson says the company just wants to accelerate everything it's doing, and push harder. That means a more diverse roadmap and more importantly, a much broader distribution strategy with more partnerships. One of those partnerships with with iStockphoto, whose founder, Bruce Livingstone, participated in this round.
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