Telstra Leads $35 Million Round In Online-Video Startup Ooyala

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Ooyala, an online-video management service provider, raised $35 million in new capital led by Australian telco Telstra, with participation from prior investors including Sierra Ventures, Rembrandt Venture Partners and CID Group.

To date, Ooyala has raised a total of $79 million and has more than 500 customers, including ESPN, Pac-12 Enterprises, Miramax, Bloomberg, Victoria's Secret and Tennis Australia. Other investors in the company include Motorola Mobility.

In addition to leading the investment round, Telstra is working with Ooyala on a commercial agreement that will let Telstra become a Ooyala customer and reseller, deploying Ooyala software, analytics and service offerings throughout Australia.

Telstra Media director Gary Traver -- formerly chief operating officer of Comcast Media Center -- will become a member of Ooyala's board of advisors with the funding. "The industry is now standardizing around technology stacks that enable the future of IP-based distribution," Traver said in a statement. "With Ooyala's robustness and focus on personalization and profitability, it is becoming the platform on which the next generation of large-scale deployments are built."

Telstra's current multidevice IPTV offerings will be integrated with Ooyala's online video technology and analytics.

Ooyala said it will use the new capital to add scale particularly to its operations outside of the U.S., building on its existing footprint in Europe, Asia, Australia and Latin America. More than half of Ooyala's business is outside the U.S., and the company said it has quadrupled revenue since its last funding round in September 2010.

Ooyala is based in Mountain View, Calif., with offices in Los Angeles, New York City, London, Sydney and Guadalajara, Mexico.

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