Keek, a website that allows users to post short videos updates in a Twitter like manner, has received $5.5-million in early stage funding from AlphaNorth Asset Management, Plazacorp Ventures and PowerOne Capital Markets Ltd. All firms involved in the deal are based in Toronto and show that Canadian VC firms and startups are still investing in their own country.
Isaac Raichyk, the CEO of Keek, explains the appeal for his website by saying that, “From everything that we see, young people seem to be attracted to video communication. With things like Skype showing up on Facebook, people seem to be moving towards more visual communications and we want to dominate what we call the microvideo space.”
Users that come on to the site can create an account and post ‘keeks’ which are basically short recording from webcams, Android devices or iPhone. The videos can only be 36 seconds long making loading times for videos fairly fast. Other Keek users comment on the video, recommend the ‘keek’ to their friends or reply with a microvideo of their own.
The start-up is only 18 months old and was running on Raichyk’s personal funding. However, with the fresh input of cash the company can breathe easy and the 30 employees can power the growth of the company. The Keek CEO adds that, “We have enough added features that would have taken a year to roll out that now may take only 6 months to roll out. We have an opportunity now to expand globally much faster.”
Keek may need to utilize the funds in a manner that will help them beat out the competition in the microvideo sector because competitors like Vloggo, Tout Inc. and Virtual Labs are hot on its heels. They will also need to figure out how to create profits from the business. For now, Miranda McCurlie, Keek’s manager of public relations says that, “Over the next 12 months our focus is on product development, growing the community and scaling the operations.” Keek will look at the business model question at a later time when it is comfortable with its growth and product.
Source: Financial Post
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