Live Web and mobile streaming video service Ustream.tv has raised $20 million in Series B funding from SoftBank Corp., a Japanese telecommunications and media corporation. The company’s previously held investments amounted to $12.8 million (2008 Series B round plus 2007 angel funding round).
As part of the deal, SoftBank has the option to invest another $55 million in Ustream by 2011. Under the current investment, the Japanase firm is valuing Ustream at about $150 million.
On top of the investment from SoftBank, Ustream says it may still be gathering more capital from other American and Japanese contributors, which would boost this Series B even higher than $20 million.
Like Qik and Justin.tv, the service provided by Ustream gives users the ability to record video through their computer Web cam or camera phone and stream it live over the Web to whoever wants to watch.
The Mountain View-based company was the first to enable live video streaming (and video recording in general) for iPhone 3G (and 3G S) users, when Apple began to allow the option in December.
“It’s a greenfield opportunity,” said Ustream CEO John Ham. “The market for live streaming is very large if you consider all the cell phones” in Asia.
Naturally, since so many millions are pouring into Ustream from a Japanese firm, the company will use its new funds to expand into Japan, China, Korea and India particularly by opening new offices, hiring new employees, and generally providing more services in those countries. Mobile video is a big thing in Asia, and Ustream might be aiming to make it even bigger.
