Elemental Technologies, a US-based provider of video processing services, has raised an undisclosed amount from Citrix Systems, a US-listed virtual computing company.
Elemental and Citrix have previously worked together on virtualized applications, such as computer-aided design software, and plan further developments in video applications in a virtual environment, including programme guides.
Elemental uses parallel processing technology to convert video from one format to another for viewing on portable devices.
Andy Cohen, senior director of strategic development at Citrix, which last month started its Citrix Startup Accelerator to invest in early-stage companies worldwide, said: "Given the rapid explosion of video usage by desktop users, we see the promise that Elemental’s technology holds for more efficient delivery of video to the millions of virtual desktops in use today in enterprises around the world."
On the same day as its investment in Elemental, Citrix posted revenue of $530m in its fourth quarter results, up 17% from $451m in the final three months of 2009. For the 12 months to end-December, Citrix had annual revenues of $1.87bn, up 16% from $1.61bn in the previous year.
Sam Blackman, chief executive and co-founder of Elemental, said: "In 2011, we plan to continue the trajectory we’ve established through early customer wins with content providers like ABC, Big Ten Network, CBS Interactive, National Geographic and PBS by extending our business into content distributors."
In July, Steamboat Ventures, the corporate venturing division of media group Walt Disney, joined the US government’s venture capital unit in funding Elemental.
Elemental raised $7.5m in its series B round, with Steamboat leading and joined by repeat VC investors General Catalyst and Voyager Capital.
In-Q-Tel, the independent strategic investment firm that identifies innovative technology solutions to support the mission of the Central Intelligence Agency and the broader US intelligence organizations, backed Elemental in February 2009, seven months after its $7.1m series A round from the two VCs.
The company was co-founded by Sam Blackman, Jesse Rosenzweig and Brian Lewis, who previously worked at venture-backed Pixelworks, a semiconductor company that floated in 2000.