Roku Raises $25 Million More - Multichannel

Roku Raises $25 Million More

Adds Funds As Video Streaming Market Remains Heated
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An SEC filing revealed that Roku has raised a new $25 million round of funding that extends the streaming media company’s total funding beyond the $150 million mark.

Roku told VentureBeat that the new round is to provide “additional growth capital,” but declined to disclose any other additional information not mentioned in the filing. Of recent note, BSkyB announced that it had invested another $700,000 in Roku, a move that followed its earlier $12.2 million investments it made in Roku in July 2012 and May 2013. According to CrunchBase, Roku has raised a total of $153.1 million via eight rounds.

The new funds come into play as Roku faces stiffening competition from the Apple TV, Amazon’s new Fire TV box, and Google, which recently introduced its first Android TV-based device, the Nexus Player, and is expanding its strategy for the Chromecast to include a second generation of the streaming adapter and plans to embed Chromecast functionality into other devices.

Roku has sold more than 10 million of its players in the U.S., but has not disclosed international sales figures.

Roku has remained aggressive on the product front, having launched a $49.99  HDMI-connected Streaming Stick in March, and simplified its box lineup last fall. Last month, the company announced the Roku Powered program, an initiative aimed at helping Roku strike up direct partnerships with pay-TV providers.

Roku is also trying to expand the reach of its platform through TV integration deals. China-based TV makers TCL and Hisense have built the Roku software and apps platform directly into a handful of models. Several other TV makers, including Curtis, Element Haier, Insignia (Best Buy’s CE brand), Oppo, Apex, and Polaroid, have developed or are developing TV models that are compatible with the MHL-powered version of the Roku Streaming Stick.

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