Transformation of Raw Technology into Industry Market Leader Position

Company:

Digitalsmiths provides the industry’s only studio-grade, video monetization solution with an advanced metadata framework that empowers digital media companies to distribute and publish premium video content across multiple screens, open up new revenue streams for film and TV assets, build audience, increase viewer consumption and boost audience engagement. The company’s innovative and proprietary products include multi-screen metadata management, media analysis, video indexing and search technologies and digital content publishing.

Investment Strategy Fit:

Chrysalis’ Technology team seeks enabling technology and services companies which benefit from the combination of digital media and ubiquitous broadband.

Challenge/Opportunity:

Chrysalis was introduced to Digitalsmiths’ CEO Ben Weinberger at an angel investor conference by one of North Carolina’s top start-up law firms. At that time, the company was seeking to relocate its operations from Beaufort to Raleigh-Durham to expand both capital and talent options.

Solution:

Chrysalis understood early on the emergence of digital video content and the need to build new tools to that enable Hollywood studios, broadcasters and advertisers to monetize this content, publish it across multiple screens and build audience. We quickly became involved as the company relocated to Raleigh-Durham and we partnered with the Aurora Fund for the company’s Series A financing to support their expansion needs. We then introduced the company to a Chrysalis LP and long time colleague with deep industry experience who became chairman of the company’s board of directors. Later, Chrysalis played an active role in recruiting a top notch COO from Turner Broadcasting to join the management team while also bringing in other third party advisors and thought leaders as mentors and consultants.

Results:

Leveraging the growth of multi-screen video consumption, the company continues to grow rapidly. Named in 2008 one of the “Top 45 Companies to Watch” by Dow Jones, “Technology of the Year” by North Carolina’s Council for Entrepreneurial Development (CED), and winner of “Streaming Media Readers’ Choice Awards,” Digitalsmiths’ customers include Warner Bros., TMZ.com and Ellen.com.