Automated video storytelling platform Vloggi announces new $500,000 capital raise round
- Company is raising $500,000 from existing and external shareholders ahead of $2-3m seed in 2020
- Bridge round designed to accelerate commercialisation before seed round
- Roll out of groundbreaking video collaboration UX a priority
SYDNEY, Thursday October 3, 2019 – Video content marketing platform Vloggi announced a follow-on capital raise round ahead of the platform’s official launch later this year.
The company is raising $500,000 to accelerate commercialisation of the product - initially from existing shareholders on a follow-on basis - following a successful angel raise in May, which valued the company at $2.1 million.
Parent company Cine Souk is offering equity in a bridging investment round ahead of a seed round planned for early 2020, targeting $2-3 million. This round is to complete deployment of a radical new user interface required by the company’s pivot into video collaboration.
The company is seeking A$500,000 for 246,305 at a price per share of A$2.03. This represents a 15.8% increase in company valuation over the previous raise post-money, once the employee share scheme is factored in.
As of 1 October 2019, commitments from existing shareholders exercising their right of first refusal are currently expected to fill around 45% of the round total.
“After nine months of intensive research and development, we have successfully built a collaborative video production platform that will put video production in the hands of millions of small businesses and community groups for the first time. This next raise is designed to grow the user base and implement a game-changing new user experience interface,” said Wastnage.
“We’ve been keeping a low profile for a while, but that is about to change. Since being identified on ABC News 24 as Australia’s potential next unicorn, we’ve been aware that we need to strengthen our team as we take this product to market,” Wastnage added.
Vloggi’s lead investors are committed and participating with investments in line with their current shareholdings. New investors can join the ‘follow-on’ round announced today if existing shareholders waive the opportunity to follow-on.
Strategic investors from video production and marketing automation will be given preference to join the round in the event of equity becoming available.
Vloggi is the only platform currently on the market which allows organisations and marketing teams to create, edit and distribute organic user-generated video content at scale, creating a powerful alternative to the expensive and complicated offerings typically proposed by full-service marketing agencies.
The company also recently released a major update to the platform based around team collaboration in video production. The newest release includes key new capabilities expected to encourage even stronger interest especially in its key target markets of travel and publishing.
Founded in 2018, Sydney tech startup Vloggi is the world’s first collaborative video production platform using AI to process, sort and annotate user-generated video for use by businesses and social groups. It is a registered trademark of parent company, tech investment vehicle Ciné Souk, founded in 2017.
The company was founded by Justin Wastnage, a former director of the Tourism & Transport Forum and founder of the Flight TV aviation video channel. Wastnage started his career with interactive digital television pioneer Static 2358 (later PlayJam) before creating video content for Microsoft. The company also includes lead developer Tim Revell, who holds the patent for the first video streaming service over mobile telephones.
Vloggi employs six staff, and is based out of the Fishburners coworking space within the Sydney Startup Hub (SSH).
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