Veoh Raises $12.5 million

As readers know, the venture dollars are flying thick and fast into the online video space. Today, Veoh Networks, announced that it had raised $12.5 million in a Series B venture capital financing from Michael Eisner, former chairman and CEO of The Walt Disney Company, Todd Dagres, managing partner of Spark Capital, and Time Warner. Previous investor in the company, Shelter Capital Partners also participated in this round of financing. (The New York Times has details on Michael Eisner’s new investment company, Tornante, and life after Disney.)
We had heard rumors of this funding couple of weeks ago, though could not lock down the names of the investors. Dmitry Shapiro, chief executive of the company says that the new money will be used to scale the business, hire more people and increase the marketing message. He would have to focus on marketing especially since the market is getting a tad crowded. Also, he would have to work hard to get over the damage done to it reputation by its recent fracas with the video blogging community.
Update: Erick has more details on the funding at Business 2 Blog
Here is a short list of some of the recent online video fundings:
* Veoh raised $12.5 million to bring the total to $14.75 million
* You Tube raised $8 million to bring the total to $11.5 million.
* Revver raised $8.7 million in a recent round.