Under the deal, iXL spin-off FootageNow received a $25 million investment from backers that include RRE Ventures and Corbis, an online marketplace for photography and fine art. Like Corbis, FootageNow seeks to become an online hub for buying film and video through a high-speed connection to the Internet.
"The market we are going after is ripe for change," Armistead Whitney, founder and president of FootageNow, said in a statement.
"Together with Corbis, FootageNow will change the way broadband media is accessed, distributed and purchased. The demand for film and video content continues to grow, yet the way this content is accessed has yet to be transformed by the Internet," Whitney said.
The move comes as business-to-business efforts flourish on the Internet. Forrester Research estimates that particular sector of e-commerce will reach $2.7 trillion in 2004, compared with $109.3 billion from last year. Services firms Scient and Viant, among others, are looking to tap into the growth of this market.
Other investors in the venture included Bert Ellis, iXL's founder; the iXL Executive Fund; ComVentures; Infinity Capital; Bessemer Venture Partners; WaterView; Wakefield Group; Guy Davidson; and Morris, Manning & Martin.