Another of our local startups has announced a $5-million early-stage funding. The Mpls/St. Paul Business Journal published this article online on December 1 (may require subscription to their print edition–booo!), about Swarmcast receiving an initial round of funding from Japanese VC firms. Why Japan, you might ask? Well, because there’s even higher interest in the company’s technology for downloading HD-quality video in that country than in the U.S., which is behind Japan in broadband technology and adoption.
I’d actually known about this funding for close to a year — which would make it the worst-kept secret in the Minnesota startup community. But I chose way back not to break any news about it, deferring to my friends at the company, who had some reason for delaying the announcement. Perhaps their thinking was they were way out in front of the market, anyway, so why not let it catch up a bit? Or maybe they picked up on the fact that BitTorrent was announcing its own financing on the same day — this one for $20 million — and decided they should synch up with that, for better PR value or something. [Note: regarding BitTorrent, the Business Journal article states that the swarming technology developed by SwarmCast’s predecessor company, Onion Networks, “has since been modified and used by popular peer-to-peer file-sharing company BitTorrent,” but that “the product Swarmcast now plans to launch is based on entirely new technology.”]
Whatever, this is more great news for Minnesota’s startup community! It proves again that money finds us, and that such fundings don’t always mean startups have to move to either coast to get their growth-fueling booty. [You know I’ve been chronicling the determination of another startup, Flyspy, to also disprove this commonly held theory.]
SwarmCast’s funding comes on top of two other $5-million+ Series A rounds for MN companies, which were announced almost back-to-back in the early summer: Jumpnode and HotGigs. I blogged about both companies here. Which makes me think…let’s see, that means at least three pretty big deals were brewing as much as a year ago (such financings typically are in the works for months before they’re announced). And — with the vibrancy of the tech sector having picked up markedly all year — just what all else may now be going on behind the scenes here locally as far as renewed venture financing interest in Minnesota’s Internet and IT startups?
That, my friends, is where a large part of my focus will continue to be. In fact, I’m already onto one such story you will find very interesting — another positive sign that the climate is indeed getting better. [Okay, I’m not talking about our weather! 🙂 …]
In the meantime, congratulations to my friend (and former client) Justin Chapweske, founder of locally grown SwarmCast, for making Minnesota proud. Justin, SwarmCast rocks!
Tags: SwarmCast, online video, HDTV, high-definition television, Minnesota startups
“Travelers want to experience their destination, not just visit it,” he said. “They want to understand the local culture.”
Mike grew up in Edina, MN, just about a mile from me, though we hadn’t met till he looked me up on his latest trip home. A veteran of online music, having worked at AOL and Ruckus after college at Dartmouth, he joined with former coworker Toby Mordock to found Qloud, and the pair received funding several months ago. [It’s from a notable source who must remain unnamed, or they’d have to kill me :-)…]
The massive benefits that can be realized by both developers and corporations when robust code and technical search is available is becoming increasingly obvious. Google’s entry, along with O’Reilly’s entry a few months back and the existence of koders.com — it all signals we’re on the right track. 
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