Funding round brings Internet set-top company to $140 million raised to date
Roku, the Internet set-top box company, secured an additional $60 million in funding, led by Fidelity Investments, with participation from Hearst and previous investors including British Sky Broadcasting (BSkyB) and News Corp.
The company, which has sold more than 5 million of its hockey-puck-size boxes, said it will use the new investment to expand access points to its streaming platform.
The funding brings Roku to about $140 million raised to date. In July 2012, the company announced a $45 million round from News Corp., BSkyB, venture-capital investors Menlo Ventures and Globespan Capital Partners, and an unnamed “strategic investor” believed to be Dish Network.
“Roku has built a strong brand that is widely recognized for great technology and a broad selection of high-quality content,” Ken Bronfin, senior managing director at Hearst Ventures, said in a statement. “We are truly impressed that Roku has built such a unique position in the market and we look forward to working with them to develop innovative products and services for our television audiences.”
In 2012, Roku streamed more than 1 billion hours of video and music. The company is working with two dozen consumer-electronics manufacturers, which are making more than 3.5 million “Roku Ready” devices, predominantly TVs, that will be available at retail by the end of the year. The Roku Ready devices access streaming media through the Roku Streaming Stick, a USB-size device that plugs into the back of the host hardware.
“Roku has a significant portfolio of investment and strategic partners with very successful global businesses. Their recognition of our brand success and belief in the Roku platform is a tremendous endorsement of our potential to shape the future television experience,” Roku founder and CEO Anthony Wood said in a statement.