Online Editing Co StudioNow Banks $1.5M Series A
Nashville's Claritas Capital, which was founded in 2002 and has funded 19 companies, led the round with the majority of the funding while angel investors Fred Goad and Jim Kever also contributed, said StudioNow Chief Executive David Mason. The round makes up the company's to-date funding raised, said Mason, who declined to comment on the company's valuation.
StudioNow, founded in January, launched in March and based in Nashville, develops software that connects a community of freelance editors who convert consumers' and businesses' photos and video content into films.
Mason said that consumers are charged a fee starting at $9.99 depending on the amount of media submitted, the length of the film, specific instructions, and experience of the editor. StudioNow charges businesses an average of $500 to $1,000, and Mason said its customers are currently tracking 50%/50% consumers/businesses.
"We think there is a large market of individuals and small businesses who do not want to do everything themselves but want to use a service," Mason said. "In the past three months, we've really proven there is a market for this concept – and that people are willing to pay for it."
Mason noted that while there is tight competition in the online video market, StudioNow differs because its revenue model is solely based on a for-fee per transaction customer service – instead of other companies who provide free services and garner revenue through advertising.
"We built this to be profitable based on people being highly satisfied and be willing to pay for it," Mason said. "All revenue is coming in because people are happy with the product we are creating for them."
Mason said StudioNow will use the funding to continue to develop its technology and to expand its marketing efforts, and expects the funding to last between 12 months and 16 months.
