The Livepeer streaming platform managed to secure $20 million in funding to continue building the Web3 infrastructure as we can see more today in our latest blockchain news.
The Livepeer streaming platform is a decentralized service that aims to minimize infrastructure costs for online streaming and video applications. It recently announced that it raised $20 million in its Series B expansion. The new investors in the round include financier Alan Howard and investment company Tiger Global but also existing backers participation. Livepeer announced the initial $20 million Series B in July 2021 which was led by Digital Currency Group and participation from the previous investor Northzone and Coinbase Ventures.
Join the Livepeer community call today at 12pm EST in Discord to discuss the security review phase for the Confluence L2 migration. Code4rena (C4) are helping us run an audit contest to find any vulnerabilities. Join us to learn about the process and how to get involved!
— Livepeer (@LivepeerOrg) January 6, 2022
With the new funding, the company raised a total of $48 million. The Series B extension enhances Howard’s investments in the blockchain space. Previously, the British billionaire led a $25 million extension to the digital asset custodian Copper’s Series B investment that was followed by his participation in crypto trading platform Bitpanda and the $263 million raised by Valar Ventures. Built on the Ethereum Blockchain Livepeer aims to reduce the costs of hosting streaming videos by distributing transcoding work on the computers that take part in the network.
Transcoding is a process of converting raw files from one format to another before playback but as the CEO Doug Petkanics noted, the traditional video streaming apps link YouTube involve huge costs of up to $3 per hour to stream to a cloud service. So this is where Livepeer comes in. Livepeer is building a peer-to-peer infrastructure that interacts via a marketplace where Ethereum is used to coordinate the process and settle the payments.
According to the company, there are 70,000 GPUs in the network that provide enough aggregated power to encode the video streaming via Twitch, YouTube, and Facebook combined. Petkanics said:
“This rapid Series B extension is another welcome endorsement of how we are executing on our vision of becoming the world’s open video infrastructure. We’ve seen strong organic growth in demand for transcoding, as well as growing awareness of the reliability, value, and efficiency of Web3 infrastructure.”
The company now has 32 employees, said it has plans to use the fresh funding to discover and to bring more live-streaming infrastructure opportunities. This expanding area is already seeing major popularity in the creator-driven video streams. The new round of financing follows the acquisition of MistServer as the flexible content delivery technology which extended the Livepeer offerings to enable the developers to build cost-effective and scalable streaming applications. The company added that Livepeer streamed tens of millions of minutes up to date which is a six-fold increase since the start of 2021.
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