SnagFilms has closed a new, seven-figure financing round and arranged its first debt facility, for total available equity and debt financing of $7 million.
All current investors participated, including SnagFilms founder and chairman Ted Leonsis, Steve and Jean Case’s Case Foundation Ventures, the John S. and James L. Knight Foundation, New Enterprise Associates and Comcast Interactive Capital, along with two new investors: veteran media and internet executive Terry Semel (who also joins the company’s board) and David Fialkow, co-founder and managing director of General Catalyst Partners.
The new funding will be used by SnagFilms for acquisitions, marketing and technology development to provide its library of 3,000-plus independent films across all digital platforms and devices. SnagFilms is the parent company of Indiewire.
SnagFilms is now available on over 100 devices in addition to its website and digital network of affiliated sites and blogs. The company has also expanded its on-demand availability twith Comcast, iTunes, Hulu, Amazon and YouTube Movies, and will soon launch on DIRECTV and digital streaming providers VUDU, Samsung Media Hub and XBOX Live.
“After a phenomenal year of growth in 2011, SnagFilms is poised for even greater success in 2012,” stated Ted Leonsis, SnagFilms’ founder and chairman. “This new investment by all our current investors, along with new funding from two tech and media-savvy newcomers, are true testaments to our strong belief in SnagFilms’ tremendous potential for long term success. Digital delivery isn’t just the wave of the future – it is the driving force now for filmmakers to reach large audiences and spread their passion, and to create new revenue streams that make their next film possible.”
“I have spent a long time at the intersection of films and new media,” said Terry Semel, former Co-CEO and Co-Chair of Warner Bros and CEO and Chairman of Yahoo. “Movie studios don’t have a monopoly on great stories, yet small distribution companies struggle to assemble the footprint necessary to reach a scale audience. SnagFilms has that base – the necessary contracts and relationships to distribute thousands of great stories, with the capital required to lead its field.”
“This new capital will enable SnagFilms to stay at the forefront of changing consumer behavior and technological innovation, while expanding the breadth and depth of our content,” stated SnagFilms’ CEO Rick Allen. “We are now extremely well positioned for accelerated growth, as we further our mission of bringing outstanding independent films to digital audiences, on demand, wherever and whenever they want to watch great entertainment.”