Online video site 5min has raised $7.5 million in a second round of funding. New investor Globespan Capital Partners led, with participation from previous backer Spark Capital. The startup, which started scaling out through syndication and contextual ad deals last year, will use the new funding to continue to expand its network. 5min has raised $12.5 million in total.
Spark Capital Partner Alex Finkelstein said the VC firm chose to reinvest because 5min “beat all” the milestones set when it raised its first round last year: revenue, traffic and video views, as well as the number of strategic partnerships. The startup’s most established competitor is Discovery’s HowStuffWorks (though it has recently become less of a video portal and more of a “how-to” destination); other sites include eHow and Howcast. Release.
By Tameka Kee