The top story in today's
Wall Street Journal Technology Europe section is the news that DailyMotion, the French equivalent of Google-owned YouTube, has raised another $34 million from Advent Venture Partners LLP of London, and AGF Private Equity of Paris - a division of Allianz AG. This comes on top of a $9.5 million sum raised in October from Atlas Ventures and Partech. Such unusually high amounts for a European Internet startup (YouTube had only raised $11 million before they sold to Google) show that a time-to-market race has started, with YouTube now pushing into international markets as well (they just opened local sites in France, Ireland, Italy, Japan, the Netherlands, Poland, Spain and the U.K.).
Whether these investments will pay off for DailyMotion also depends of course on how illegal copyright material can be weeded out from the site. Google so far has not had much fun with its expensive YouTube acquisition, getting drawn into many copyright infringement cases. They are a nice cash-rich target for that. Anyone who might be looking at acquiring DailyMotion will have that in mind, which makes a trade sale exit somewhat unlikely. So the only other exit would be an IPO, which requires that DailyMotion makes a good profit over some time. The goal now is that the new money raised brings them to that stage. Not an easy task though I would think.
