Cinebase Software, Inc. said Tuesday it has secured $9 million in venture capital from a division of Bear Stearns Co. to develop and market its media management software to the entertainment industry.
The New York investment firm’s Constellation Ventures recently earmarked $100 million to inject into “severely underserved” multimedia companies in New York’s Silicon Alley and Los Angeles’ Digital Coast.
According to Clifford Friedman, senior managing director at Bear Stearns, Constellation will target early- to midstage media, communications and technology companies as candidates concentrating on developing content for the Web and for other multimedia outlets.
Spreading the wealth
Individual investments will be less than $10 million.
Bear Stearns wants to inject the $50 million earmarked for L.A. into at least 10 different local companies.
Los Angeles-based Cinebase will use the financing to accelerate the growth of its media management portfolio into digital television and Internet commerce revenue streams.
The company provides media management software solutions for production, post-production, broadcast, cable and government ventures. Hollywood studios make up 80% of its business, the company said.
“The capital infusion was necessary for the company to go to the next step in terms of software development,” Gail Itoh, chief financial officer for Cinebase, said.
Sold on L.A.
Friedman says his company’s commitment to Los Angeles is sure to lure other financing to South California’s multimedia marketplace.
Psilos Group Managers, a private equity fund with a growing commitment to digital media investments, already has worked with Constellation on several investments on both coasts. The group is working to close its own $110 million fund, a part of which will also be invested in Los Angeles.