Press Releases
13/06/2005
London, 13 June 2005: Today, Video Island announced that it has raised a further £5 million from EVP, Europe's leading venture debt provider, adding to the £million it has raised to date. This funding takes the total amount raised by Video Island to over £15 million, substantially more than any other UK or European online DVD rental company business. EVP joins current equity investors Benchmark Capital, Cazenove Private Equity and Index Ventures.
This funding both cements Video Island's position as the leading online DVD rental company in Europe and demonstrates Video Island's strong financial position and ability to raise debt as well as equity. The funding will be used to expand Video Island's DVD library - already the largest and most comprehensive in Europe - and to support the exceptional growth and market reach achieved in less than 20 months. Furthermore it will enable Video Island to further position itself for accelerated growth and invest in both new revenue and acquisition opportunities.
Saul Klein, CEO, Video Island, "Having already raised £10m, Video Island has always recognised that building a scaleable and substantial business in this sector is both extremely capital intensive and requires total operational focus combined with highly specialist expertise. The fact that in recent weeks Wal-Mart has decided to handover their online DVD rental business in the US, to a specialist, clearly validates the complexities of the sector and highlights our success in creating a model that has made us Europe's premier platform in this space. We are delighted to welcome EVP to our team of blue-chip investors to further drive the growth of our platform and support the development of Screenselect.co.uk and the sister brands we operate for Tesco, MSN, ITV and easyGroup."
Video Island, founded in September 2003, dominates the UK online DVD rental market and is the largest independent player in Europe. The successful pioneer of a platform strategy, Video Island now powers the online DVD rental services of some of the Europe's largest national brands - Tesco, MSN, ITV and easyGroup - in addition to its own consumer brand, ScreenSelect.co.uk. Boasting a library of over 32,000 titles and making nearly 1.5m shipments per month, Video Island is the online equivalent of 150 high street stores and recently celebrated the rental of its 6 million DVD.
Ross Ahlgren, Partner at EVP, "Video Island has established itself as the dominant player in this market and has forged ahead of its rivals both in terms of market share and innovative approach. We are excited to team up with some of Europe's premier VCs to support the continuation of Video Island's impressive development."
"Already a common financing technique in the US, EVP's venture debt proposition is ideally positioned to fulfil Video Island's current funding requirements. We are delighted to be working with the EVP team," added Simon Cook, Investment Director of Cazenove Private Equity.
According to Screen Digest, the online video rental business has expanded dramatically in the last few months and is estimated to be on track to represent 15% of the total UK rental sector this year.
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Video Island raises £5 million debt funding from EVP
New funding takes total raised by online DVD rental business to over £15 millionLondon, 13 June 2005: Today, Video Island announced that it has raised a further £5 million from EVP, Europe's leading venture debt provider, adding to the £million it has raised to date. This funding takes the total amount raised by Video Island to over £15 million, substantially more than any other UK or European online DVD rental company business. EVP joins current equity investors Benchmark Capital, Cazenove Private Equity and Index Ventures.
This funding both cements Video Island's position as the leading online DVD rental company in Europe and demonstrates Video Island's strong financial position and ability to raise debt as well as equity. The funding will be used to expand Video Island's DVD library - already the largest and most comprehensive in Europe - and to support the exceptional growth and market reach achieved in less than 20 months. Furthermore it will enable Video Island to further position itself for accelerated growth and invest in both new revenue and acquisition opportunities.
Saul Klein, CEO, Video Island, "Having already raised £10m, Video Island has always recognised that building a scaleable and substantial business in this sector is both extremely capital intensive and requires total operational focus combined with highly specialist expertise. The fact that in recent weeks Wal-Mart has decided to handover their online DVD rental business in the US, to a specialist, clearly validates the complexities of the sector and highlights our success in creating a model that has made us Europe's premier platform in this space. We are delighted to welcome EVP to our team of blue-chip investors to further drive the growth of our platform and support the development of Screenselect.co.uk and the sister brands we operate for Tesco, MSN, ITV and easyGroup."
Video Island, founded in September 2003, dominates the UK online DVD rental market and is the largest independent player in Europe. The successful pioneer of a platform strategy, Video Island now powers the online DVD rental services of some of the Europe's largest national brands - Tesco, MSN, ITV and easyGroup - in addition to its own consumer brand, ScreenSelect.co.uk. Boasting a library of over 32,000 titles and making nearly 1.5m shipments per month, Video Island is the online equivalent of 150 high street stores and recently celebrated the rental of its 6 million DVD.
Ross Ahlgren, Partner at EVP, "Video Island has established itself as the dominant player in this market and has forged ahead of its rivals both in terms of market share and innovative approach. We are excited to team up with some of Europe's premier VCs to support the continuation of Video Island's impressive development."
"Already a common financing technique in the US, EVP's venture debt proposition is ideally positioned to fulfil Video Island's current funding requirements. We are delighted to be working with the EVP team," added Simon Cook, Investment Director of Cazenove Private Equity.
According to Screen Digest, the online video rental business has expanded dramatically in the last few months and is estimated to be on track to represent 15% of the total UK rental sector this year.
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