Vidyo raises $15 million

We all have problems with Internet video conferencing.  From pixelated images to delayed audio, it’s just not quite there yet. 

Vidyo, an Internet video conference solutions provider, today has raised $15 million in VC funding.  It offers a solution to the typical Web video conferencing issues like choppiness, lag, and pixelation. 

Although Vidyo’s solutions are currently targeted for enterprises, its technology could be promising for the future of consumer Internet video conferencing. Vidyo is the first company to use an architecture based on the new H.264/SVC (Scalable Video Coding) standard.  This means video quality will be scaled based on the needs of the end user.  This eliminates the need for traditional technology that uses a central mechanism to decode and encode video, causing what we see as lag, choppiness and overall poor quality in Internet video conferencing. 

Vidyo’s business model is quickly being adopted across the video conferencing spectrum.  The company has already licensed their technology to Hitachi, ShorTel and Teliris.  

This third round of financing for Vidyo is led by Menlo Ventures, and joined by return backers Rho Ventures, Star Ventures, and Sevin Rosen Funds.  Vidyo’s total capital raised amounts to $38 million since its founding in 2005. 

Vidyo, which is based out of Hackensack, N.J., has achieved global recognition including the DemoGod award, Best of Interop, and Frost & Sullivan’s  Conferencing and Collaboration Product of the Year for 2009.

Check out an example of Vidyo's technology in action: