Israeli Start-up Kaltura Raises $47 Million in Funding

Israeli open-source video software provider likely to make IPA this year

The Israeli software start-up Kaltura has raised $47 million from investors in a fundraising round that valued the company at $250 million, TheMarker has learned. The fundraising is likely to presage an initial public offering sometime this year for the company, which makes software for an open-source video platform.

The round was led by SAP Ventures, the German business software giant SAP business arm, and by Nokia Growth Partners, CommonFund and Gera Ventures. They were joined by existing shareholders including Intel Capital. Kaltura and its investors are expected to make a formal announcement about the funding in the next few weeks. In the meantime, SAP has declined to comment on the report.

The present round brings the total capital raised by Kaltura since it was founded in 2006 to $105 million, making it one of the few Israeli startups to have raised more than $100 million before going public. In 2013, the company reported it employed 200 people.

Founded by Ron Yekutiel, Shai David, Michal Tsur and Eran Etam, Kaltura makes products used by some 300,000 organizations to manage their online video content. Some 40,000 developers are registered in the company’s open-source development community.

Kaltura’s platform allows customers to upload any information related to video, convert it to appropriate formats for a variety of platforms, manage the video content and its accompanying information, distribute it to websites and locations, and help monetize it through advertising and services such as video on demand.

Kaltura has three main product lines for different customer segments: Media groups, such as HBO, Warner Brothers and Paramount; large businesses and organizations that want to integrate video in their internal portals, such as SAP, Bank of America and Oracle; and universities, including Harvard, Stanford and Princeton. The services can be installed on the customers’ own servers, or in a cloud or as part of a “Software as a Service” application.

In its previous fundraising round, in November 2012, Kaltura raised $25 million from Mumbai-based Nexus Venture Partners, Intel Capital, 406 Ventures and Avalon Ventures, and from new investors Mitsui Global Investment and Orix Ventures.

Nir Keidar