Reality Digital Raises $6.3M

Reality Digital, a white-label video company with a great customer list, has raised $6.3 million in second-round funding from OpenView Venture Partners. The San Francisco-based startup provides video community sites for media and advertising clients such as MTV, Lonely Planet, MLB and DippinDots.

“Some of the investments that we’ve seen in companies in the same market are raising a lot more money, but because we’re a [software as a service] business, this is all we need,” Reality Digital founder and CEO Cynthia Francis told us last week. The company was running at breakeven before taking funding. It competes with Brightcove, KickApps, Vitrue, ThePlatform and others.

Reality Digital — which has gone through a number of iterations, starting life as a consulting firm and before launching its own consumer-facing site, ClipShack — had previously raised $2.5 million in Series A funding in 2005. With the latest round, Francis will increase her team to 25 from 14 and open an office in the UK.

The company has partnerships with Limelight Networks for content delivery and Adobe for video editing. It is working to make its products more turn-key through its API, so it can increase its customer base without upping its workload. Francis said she sees the market trending towards “more campaign-based projects as opposed to social media sites that are going to be living in perpetuity” — which explains why some of the Reality Digital customer site links are dead.