Archive for the ‘Revolution’ Category

BlackStar gets £6m to fund further expansion

Saturday, July 1st, 2000

Online DVD and video retailer BlackStar has raised over £6m from its secound-round funding. The money comes from existing investors Atlas Venture and Tarrant Venture, in addition to a group of private individuals.

The fresh injection of revenue means the UK’s largest e-tailer of DVDs and videos (www.blackstar.co.uk) is now valued at £20m.

The money will be used to fund its marketing campaign and further site development. The company also aims to build on its customer service and take on new staff. Jeremy Glover, co-founder and one of BlackStar’s directors, believes that the company has carved a strong position for itself. “We have built a good brand,” he said. “In the current climate, the funding is a massive vote of confidence.”

After the failure of boo.com, BlackStar decided against an IPO that would have raised a possible £50m and turned to the private placement market instead. It aims to make a profit by the middle of next year. “Once we prove that we can turn a profit in the UK, we can think about moving into Europe,” said Glover. With 200,000 customers, the site pulls in £1m revenue and five million page impressions a month. It has also recently introduced a film and TV listings service where users can search for entertainment information.