Joyus, the startup that makes videos for online shopping focused on fashion beauty and health products has secured $24 million in Series C funding. The funding round was led by Marker LLC and Steamboat Ventures, a venture capital firm that is affiliated with the Walt Disney Co. The other investors who took part in the fund-raising are the already existing backers of the company Accel Partners, InterWest and Time Warner Investments. With the latest addition of the fund, the total funds secured by the startup would add-on to $44 million.
Founded by Sukhinder Singh Cassidy, the startup Joyus produces online videos that feature beauty, fashion and health products that can be shopped from the company’s website or through a special Joyus video players when a video is viewed on other sites around the Web. The products can also be purchased by clicking the ads that are displayed alongside the videos. Founded in 2011, this San Jose-based startup is the world’s first direct-response online video network more or less like QVC, but online. The startup generates revenue by taken 40% to 60% commission of the sales of the products displayed in its videos. The content is displayed on the websites of publishers like People, AOL and Yahoo.
In a press release, Singh Cassidy said, “I couldn’t be more proud of what Joyus has accomplished and we have only just started. The continued shift of users towards consuming online video across all devices and all genres of content is driving a large-scale opportunity in lifestyle programming and monetization through commerce. We have built a deeply engaging content and commerce experience for consumers, our partners are seeing off-the-chart ROI in our videos, and we are attracting world-class talent and investors.”
At the time of announcement of the new capital, the company revealed many changes in the leadership appointments in its content, merchandise and operations which includes making David Lazar as president and chief customer officer, Kathy Samuels as chief content officer, Jennifer Sharp as VP as Partnerships, Sandra Szahun as head of sales and Jonathan Hoeh as VP of operations. With the new cash in-flow, the company is planning to work on improving the studio space to give out more number of videos with better quality.
“Investing in Joyus was a no-brainer for Steamboat,” said Alwx Hartigan, partenr at Steamboat Ventures. He also added, “As a global media company, Disney and Steamboat are always looking for the next generation of media innovation and Joyus has created it with a powerful new programming and business model for online video. We are very happy to be part of the Joyus family.”
Sources suggested that the company is on a look out for distribution deals for its videos online. Around one-third of videos are from the website itself or via online publishers like People and AOL. As said above, the company has a revenue sharing policy with the company. Around 35% of the company’s revenue is generated from mobiles. It is said the mobile app users spend more time and money on the phone than the desktop users or web users.
Partner at Marker LLC, Rick Scanlon said, “It is not easy to monetize online video, but Joyus makes it look easy,” He also said, “The team at Joyus is built to take this model even further and we are very excited about what the future holds for this company and anyone involved.”