, the company behind a pioneering network-based delivery platform for addressable IPTV advertising – an approach that will enable eventual one-to-one communications between TV advertisers and individual viewers – has announced that it has raised a second seed round totaling £1 million (approx USD $1.75 million). All of Packet Vision’s initial angel investors have contributed to the round, including well-known names such as Dr Andrew Rickman, OBE, founder of Bookham Inc who is Packet Vision’s chairman, and Jon Moulton, managing partner of Alchemy Partners. Three new angel investors have also contributed.
Packet Vision, which was founded in May 2004, is the first company world-wide to combine all the functions for highly targeted advertising - media server, splicer, playout router and management system - into a single, 'pizza box' style enclosure that is tailor-made for IPTV. Until now, the delivery of targeted advertisements has required the combination of several products from different manufacturers, typically designed for traditional cable networks rather than IP. These solutions have been large in size and expensive to implement and do not scale well for highly granulated ads.
Packet Vision has already demonstrated proof of concept of its initial product, with public demonstrations at trade shows in the US and Europe. It is well advanced in dealings with potential partners and customers. The funding will enable the company to continue enhancing its initial product; to set up the infrastructures needed for manufacturing, sales and support; and to begin field trials. The recruitment process for a number of new staff is already under way.
"Starting with a clean sheet of paper has enabled us to design a scalable, cost-effective delivery platform that for the first time will make one-to-one television advertising practicable," says Packet Vision managing director, Patrick Christian. "We are delighted that our approach has struck a chord with potential partners and customers; analysts and investors. We are particularly pleased that all those who invested in our first round have chosen to continue supporting us."
The company reports that initial discussions with several leading high tech fund managers has received good feedback, and that it plans to close a first round of institutional venture capital in around six to nine months' time.