Brightcove files IPO to raise $50 million
The online video company has filed a registration statement for initial public offering with the SEC, hoping to raise $50 million.
Online video provider Brightcove has filed its first document for an IPO, with the goal of bringing in $50 million.
According to the registration statement filed today with the Securities and Exchange Commission, the initial public offering will be managed by Morgan Stanley and Stifel, Nicolaus & Co., and comes on top of the $12 million that the company raised in April and June of 2010, according to BostInnovation.
Based in Cambridge, Mass., Brightcove sells cloud-based products that let companies publish and distribute online video across PCs, smartphones, tablets, and Internet-connected TVs. It currently has around 3,000 customers, including The New York Times, Oracle, Macy's, Bank of America, the U.S. Army, and Honda, said TechCrunch, which questioned whether this is the right time for an IPO given the current state of the economy.
The company has seen its revenues rise but it's been hit by a series of net losses. Sales for the first six months of the year reached $28.4 million, up from $20.3 million a year ago, according to Business Insider. However, Brightcove took a loss of $9.7 million during the same period and doesn't expect to start turning a profit until late next year at the earliest.
Still, Brightcove has been one of the top-watched firms in Massachusetts on SecondMarket, an online service that lets investors trade shares of private businesses, BostInnovation said, pointing to a high level of interest in the online video provider.
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