Prediction Comes True for Kaltura

On January 7, 2014, I predicted that Kaltura would raise a monster round within the next 60 days. Low and behold, they raise $47M thirty five days later. In total, Kaltura has raised $115M, and joins the elite group of Tier 1 OVP players that have raised over $100M+. The Tier 1 Online Video Platform (OVP) players include Brightcove, Ooyala, Kaltura and ThePlatform (acquired by Comcast).

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The latest funding enables Kaltura to expand operations globally, grow its employee count, and develop cool new features. If the market is any indication, it’s crystal clear that Kaltura should not buy, or develop its own ad-insertion technology. Akamai sold off their Ad-Targeting business, and Brightcove’s stock took a big dive after it announced plans to acquire Unicorn Media.

The OVP market is small, compared to the CDN and Cloud Security market. In 2013, Brightcove, the largest OVP, generated $110M in annual revenue, representing 25% year-over-year increase. My guess is that Kaltura generates about $50M annually, and Ooyala about $75M annually, for a total combined annual revenue for all three OVP’s of $235M. If Kaltura plans to go public, and reach a billion dollar valuation, they need to break free from the OVP mentality, and develop an innovative feature that changes the game, whether its in analytics, security, or some other type of cloud infrastructure offering.