Veoh Networks, one of the many video streaming portal clones to spring up in the wake of YouTube’s success has laid off all of its staff and is in the process of filing for Chapter 7 liquidation proceeedings after its venture capital partners (which included Shelter Capital Partners, Spark Capital, Goldman Sachs, Adobe Systems Intel Capital and Time Warner Investments) would not provide additional funding.
Veoh closed a series D round of investment valued at $67.5 million in June..of 2008 and was negotiating for another round of financing in January before talks broke down. The company was apparently unable to secure additional funding from its investors or find additional outside investors to continue operations.
Veoh was notable for allowing uploads of longform videos instead of forcing videos to be split into 10 minute pieces, was one of the few portals to support HD streaming before YouTube and recently enabled HTML5 video streaming support.
The death knell for the company was its protracted lawsuit with the Universal Music Group conglomerate, which it won at the expense of losing potential investor confidence and killing the startup’s chances at success
Humberto Saabedra
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