Youku raises another $30m
JLM Pacific Epoch are reporting that Beijing based UGC Video site Youku has raised a new investment of $30m from existing investor Brookside Capital. they also secured a $10m equipment loan from Western Technology investment.
Beijing-based user-generated video site Youku.com confirmed on Monday that it has received a new $30 million investment from existing investor Brookside Capital Partners and Maverick Capital. Youku CEO Victor Koo said the new capital, $40 million including a $10 million equipment loan lent by Western Technology Investment (WTI) in May, will be spent on platform technology, improving user experience and market expansion. The chief executive officer said the funding would be enough for more than one year of operation. Youku will pay back its equipment loan within three to five years, said the report. The video site is still aiming to exceed revenue of RMB 100 million in 2009.
Ouch. $30m for ‘more than’ one year operation. Data charges are heavy in the ugc video business and this illustrates what a fine knife edge the Web2.0 sites are balancing on. One slip and it’s goodnight all.
