Peerflix Closes Series A Financing
Tuesday, March 08, 2005
Menlo Park, CA - Peerflix, an online peer-to-peer service that allows members to legally trade DVDs, today announced the completion of its first round of venture financing. The Series A investment was co-led by 3i, an international private equity and venture capital firm that operates on three continents, and BV Capital, an independent venture capital fund with high profile global investors. The funding will be used to accelerate member acquisition, scale the company's infrastructure, and develop new product offerings and enhancements. Joining Peerflix founders Danny Robinson and Billy McNair on the board will be Robin Murray of 3i and Thomas Gieselmann of BV Capital.
"Our research shows that 95% of consumers who own a DVD-player also own at least one pre-recorded movie on DVD, with 68% of them having more than 10 DVDs at home. That collection, however, can quickly lose its entertainment value and the residual worth is too low to justify selling it", said Billy McNair, co-founder of Peerflix. "We recognize this situation, and offer DVD owners a new solution to get the maximum value from their DVDs: Peerflix members can trade DVDs they own and no longer want for DVDs they would like to watch. Our recent funding validates the viability of the business model we built, and the community that has developed as a result."
Danny Robinson, co-founder of Peerflix, adds that "Peerflix couples the power of communities and decentralized peer-to-peer models to make the DVD by mail experience truly scalable and economically viable. With Peerflix, every household in North America is a potential distribution center."
Peerflix was founded in 2004 by Danny Robinson and Billy McNair. The two entrepreneurs had previously teamed up to launch Spinway Inc., a provider of e-commerce and private-label ISP solutions for leading brick and mortar retailers that was acquired by Bluelight.com, the ecommerce division of Kmart. Through early word of mouth, the Peerflix beta service has experienced exponential growth with over 25,000 DVDs currently being requested for trade on the site. The company intends to expand into other products, including video games and CDs, and to offer its services internationally.
"As a global investor, we are always looking for companies with strong scalable business models and experienced, solid leadership," said Robin Murray, partner with 3i. "We see a tremendous market opportunity in the legal trading of DVDs and other types of media content. The Peerflix management team is well-prepared to take on the challenge of innovating and executing in this market."
"We strongly believe in the potential of the Peerflix platform and in the possibilities for peer-to-peer trading of DVDs and other content," said Thomas Gieselmann, General Partner, BV Capital. "Peerflix has already shown itself to be a formidable competitor in a complex market and we believe it will continue to perform exceptionally well."
Peerflix is headquartered in Menlo Park, CA, and currently offers its services in the U.S. and Canada.
About 3i: 3i is a leading international venture capital and private equity firm that was founded in 1945 to invest in buyouts, growth capital and venture capital in order to create market-leading companies. Since its inception, 3i has invested over $31 billion worldwide and has a total staff of 700 employees operating out of 30 offices in 14 countries. In the U.S., 3i invests in both early and late stage technology companies in the software, communications, semiconductor and healthcare sectors. 3i partners leverage over 150 years of investing and operating experience and a global network to create value for their portfolio and investment partners. With a proven track record and knowledge of venture capital investing, 3i provides hands on support and guidance in building and scaling successful businesses. For more information, see http://www.3ius.com
About BV Capital: BV Capital is an independent venture capital fund with international high profile investors. The four founding members of the firm have extensive experience in the Internet, electronic media and telecommunications industries. BV Capital primarily focuses on early stage investments in the media, communications, infrastructure, enabling technologies and wireless application markets. In 2000 the Wall Street Journal named BV Capital as one of the most influential technology financiers on either side of the Atlantic. For more information, please visit: www.bvcapital.com.
About Peerflix: Peerflix, headquartered in Menlo Park, CA. is the new, easy way for anyone to get the most out of their DVD collections. Started in 2004, the Peerflix service allows DVD owners to trade DVDs that they no longer want for other DVDs they would like to watch. With Peerflix, members can maintain a dynamic and updated library of DVD titles, in a cost effective manner. While still in its "beta" phase, Peerflix has already grown to become the leading online destination for DVD owners to trade their DVDs. The Peerflix service is currently available in both the United States and Canada. For more information, please visit www.peerflix.com.