YouTube rival Dailymotion gets $11 million from French government investment fund

French online video share firm Dailymotion will see an $11 million investment from strategic investment fund FSI, as part of DM's latest funding round. The French government has a 49 percent stake in FSI, and says it's investing because Dailymotion is nearing profitability. DM's other investors in its most recent round of fund raising include existing shareholders Advent Venture Partners, AGF Private Equity, Atlas Venture and Partech International, reported Reuters. The total funding round was $25.5 million.

On his blog, Atlas Venture's Fred Destin says his firm has taken heat over the years for backing Dailymotion, but adds "the company is still here, and here to stay. Somehow we have managed to define a positioning that is our own and appeals to our users, and to build a business around this. I am not declaring victory yet, but I am proud that we built a sustainable business."

The site---which launched just a month ahead of YouTube--boasts some 60 million unique monthly users and 1 billion video views a month worldwide. Since 2006 has raised in excess of $90 million.

FSI was established in 2008 during the nation's financial crisis, with the aim of investing $2.8 billion to $4.3 billion a year in companies struggling due to the economic downturn.

For more:
- see this Reuters article

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