Arroyo Video Solutions Raises First Round of Funding from Time Warner Investments, Comcast Interactive Capital, Top VCs

Business Wire,  April 26, 2004  

Tags: Comcast Corp., Time Warner Inc.

• E-mail
• Print
• Link

Business Editors/High-Tech Writers

PLEASANTON, Calif.--(BUSINESS WIRE)--April 26, 2004

$13 Million Investment Validates Arroyo's Unique Platform for

Delivering Next Generation Video Services

Arroyo Video Solutions, Inc., an emerging company developing a unique platform for delivering next generation video services, today announced that it has raised $13 million in a first round of venture funding. DCM - Doll Capital Management and Foundation Capital led the round with participation from Time Warner Investments and Comcast Interactive Capital, the investment arms of two of the nation's largest media companies. The Company also announced that Carl Amdahl of DCM and Adam Grosser of Foundation Capital have joined its Board of Directors.

Arroyo's Video Services Platform enables video providers, including cable companies and broadband operators, to dramatically accelerate delivery of innovative new TV services and applications, such as Video On Demand and interactive video services, to their subscribers. Combining an advanced and extensible architecture with an open standards-based approach, Arroyo's platform also improves video operators' profitability and reduces both capital and operating costs by delivering breakthroughs in performance and scalability for on-demand and interactive applications.

"Arroyo stands out from the other players in this market because they have taken a unique services approach to the design and development of their platform," said Carl Amdahl, Technology Partner at DCM. "They've thought through the potential applications and created an architecture that can best deliver the kinds of revenue-generating services that video providers are looking for."

"For a mass market opportunity to truly develop around next generation and on-demand video services, the media industry must have a highly scalable and cost-effective solution," said Neil Sequeira, Managing Director, Technology, Time Warner Investments. "Arroyo's platform delivers those capabilities in a product line that is strategically relevant to our industry. We believe that Arroyo can help media companies continue to drive on-demand and interactive video services to consumers."

"Advanced video services represent a significant revenue opportunity and competitive differentiation for cable operators," said Warren Lee, Principal at Comcast Interactive Capital. "We are excited about this market opportunity and believe that Arroyo's architecture, world-class development team, and innovative approach make the company an attractive investment for us."

Leading Arroyo are CEO and co-founder, Paul Sherer, and Chief Scientist and co-founder, Drew Major, both of whom have more than 20 years of experience in the communications and networking industries. Mr. Sherer spent 14 years with 3Com Corporation where, as CTO and Senior Vice President of Technology, he led 3Com's technical strategy and was personally responsible for several multi-billion dollar 3Com product lines. In the process, Mr. Sherer accumulated over 30 patents.

Mr. Major was a co-founder of Novell and spent 21 years with the company. As one of the original developers of Novell's NetWare LAN operating system, Mr. Major is often referred to as the "father of the network operating system." He was inducted into the Computer Hall of Fame in 1999.

About Arroyo Video Solutions

Arroyo Video Solutions is developing a unique platform enabling video service providers, including cable companies and broadband operators, to dramatically accelerate delivery of innovative new TV services and applications, such as Video On Demand and interactive video services, to their subscribers. With a compelling value proposition that combines new services, open standards, scalability and cost-effectiveness, Arroyo enables video providers to deploy next generation video services broadly, rapidly and profitably. Headquartered in Pleasanton, California, Arroyo is a privately-held company funded by leading Silicon Valley venture firms DCM - Doll Capital Management, and Foundation Capital, and by Time Warner Investments, and Comcast Interactive Capital, the investment arms of two of the nation's largest media companies. For more information, please visit www.arroyo.tv.

About DCM - Doll Capital Management

DCM is a top-performing venture capital firm supporting entrepreneurs building early-stage technology companies. DCM's partners, armed with over a century of operational and investing experience, have funded leading technology companies including About (Primedia), Foundry Networks (Nasdaq:FDRY), Internap (Nasdaq:INAP), IPivot (Intel), PGP, Recourse Technologies (Symantec), Remedy (Peregrine Systems), and UUNet. DCM offers hands-on operational guidance and access to an extensive network of resources, including close relationships with many of the Pacific Rim's leading companies and investors. Please visit DCM's website at: www.dcmvc.com.