Inlet Technologies Lands $4.4 Million, New Investor In Additional Financing
Posted August 22, 2006 10:23 a.m. EDT
RALEIGH, N.C. — Inlet Technologies
, a developer of digital data compression technologies and related applications, is gearing up for further growth with $4.4 million in additional venture capital.
Inlet, a three-year old company that already works with Microsoft and billionaire Mark Cuban's emerging HDNet, also landed a new investor as part of the round.
Core Capital Partners led the additional financing. Also participating were existing investors Technology Venture Partners, Telecommunications Development Fund and Capitol Broadcasting. As part of the deal, Pascal Luck of Core Capital will join Inlet's board of directors.
The financing was an extension of Inlet's "B" round that initially closed on $5 million in June of last year. The total of $9.4 million round was oversubscribed and boosted Inlet's venture capital to date to $10.5 million.
"There is a lot of interest in this space," said an elated Neal Page, Inlet's chief executive officer and a pioneer in compression technology. "It's very hot with companies looking for new ways to deliver video content to consumers over various networks and to many kinds of different devices."
Page's former company, known as Osprey Technologies, set the pace in development of streaming technology for audio and video over the Internet. He and Chief Technology Officer Scott Labrozzi formed Inlet in 2003, developing proprietary technology that now enables sophisticated compression of digital content - especially bit-hungry high definition.
"We are bringing new technology with secret sauce, but we are offering it based on industry standards," Page said. "We enable companies to deliver quality video across networks to devices ranging from handheld to broadband high-definition."
Inlet's technology and related applications have won the company customers that both create content, such as Hollywood production companies, and those that deliver it, such as HDNet. HDNet is the company formed by Dallas Mavericks and "dot com" billionaire Mark Cuban focused on development and deliver of high-definition over the Internet.
Microsoft also is a "major partner", Page said. Microsoft develops its own content for video games and software for data delivery. Other partners include Scientific Atlanta, which is now owned by Cisco, as well as Texas Instruments and Hewlett-Packard. Scientific Atlanta, which focuses on delivery of on-demand content over networks such as cable, is utilizing Inlet technology as part of the on-going broadband trial being run by AT&T.
Production companies use Inlet technology to speed up production while cutting costs without compromising quality.
The new funds will be used to expand sales and marketing efforts, expand ongoing product development, and to "carefully expand the business", Page said.