Kaltura gets $50M investment from Goldman Sachs ahead of IPO

Screen capture of a Kaltura MediaSpace promotional video.

Goldman Sachs has invested $50 million in Kaltura, an online video vendor that provides a number of software solutions for both OTT video services and enterprise video. The infusion will be used by Kaltura to expand further worldwide, as interest in third-party OTT services continues to grow.

The vendor didn’t disclose its latest valuation, but the funding round is expected to be its last before it goes after an initial public offering, according to the New York Times. Goldman Sachs VP Holger Staude will join Kaltura’s board of directors.

Kaltura has made a name for itself over the years helping media companies get online without investing too much in OTT platforms and related technology -- similar to the business model behind MLB Advanced Media’s BAMTech wing, a direct competitor in which Disney just took a $1 billion stake.

For example, the vendor along with 3 Screen Solutions powered Motor Trend’s recent SVOD service launch, providing the video publishing platform as well as management, syndication and monetization. Bringing Kaltura and 3 Screen into the mix as third-party vendors allowed Motor Trend’s parent company TEN to get the service up and running within four months.

The company also provides online video services to enterprises and education institutions as well, offering a video portal and webcasting capabilities among other features that enable internal communication, collaboration, training, customer communication, and so on. MetLife, Intel, Oracle and other large enterprises use Kaltura’s services, as do Harvard University, Stanford and NYU.

The vendor’s large customer base and product set were the main attractions for Goldman Sachs.

“Kaltura has developed market-leading technology with a flexible architecture that stands out to us as a strong and sustainable advantage,” said Hillel Moerman, co-head of the financial firm’s Private Capital Investing group. “Kaltura has an impressive roster of marquee customers across a large and diversified set of markets and an experienced management team that has demonstrated excellence, agility, and leadership.”

The investment and upcoming IPO are happening at an interesting time for the third-party OTT services segment, and particularly for Kaltura. As media companies like Disney try to figure out how to affordably offer more OTT video services, without building their own online video platforms, Kaltura could be in a good position to further capitalize on its product portfolio.

For more:
- see the release
- see this NYT article

Related articles:
Motor Trend goes SVOD with Kaltura and 3 Screen Solutions
Broadcast, OTT video complement each other, Sling TV, Kaltura, other execs say at IBC
IBM partners with Kaltura to power Turner's multiscreen play in Latin America