Hitting the jackpot in an especially tough marketplace, entertainment Netco Heavy.com has secured a $3 million round of financing led by venture fund BayStar Capital and has tapped David Pachter as prexy and chief operating officer.
Pachter most recently was senior vice president of business development for Interactive Video Technologies, which provides streaming video solutions for company Web sites, including clients HBO, Showtime and E! Online.
He also served as senior VP of operations of Softcom, held positions at Disney and Jon Peters Entertainment and was a producer on director Doug Liman’s first feature, “Getting In.”
Heavy said it plans to use the new round of funding to increase production of its programming and launch a marketing campaign to increase brand awareness among Netizens.
San Francisco-based BayStar Capital funds both publicly traded and late-stage private companies. Its portfolio includes companies in the broadband media, Internet and wireless industries, including entertainment destinations Eruptor.com and ClickRadio, as well as tech plays Burst.com and Evolve.com.
The company began as a creative boutique for ad agencies before moving into creating original online Web series, which it syndicates to other Web sites and to offline markets.
With animated shows such as “Behind the Music That Sucks” and the live-action programming including “The Sabotage News Network,” the 35-employee firm recently inked distribution deals with Farmclub.com, the Web and TV-based entity started by Universal Music Group head Doug Morris, and Warner Bros.
Heavy reportedly was in discussions last December with Richard Li, a co-founder of the Rupert Murdoch-owned StarTV, to create a new company called Pacific Century Cyber Works, which would distribute Heavy content via satellite to the Pacific Rim. However, those talks have fallen apart.
The company recently projected annual revenues of $750,000 and a loss of $1.4 million, although these numbers do not include new distribution and financing deals.
“With the additional financing, a backlog of licensing deals and a growing demand for our professional services business, we expect to be cash-flow-positive in the fourth quarter,” said Simon Assaad, co-founder and CEO.