Friday, November 14, 2008

Boston’s .406 Ventures leads $12M round in Digitalsmiths

By Mass High Tech Staff

Local venture capital firm .406 Ventures LLC is returning to portfolio company Digitalsmiths Inc., leading a $12 million series B round of equity financing in the North Carolina broadband video company.

Fellow returning investors include Kentucky-based Chrysalis Ventures Inc. and Aurora Funds Inc., a North Carolina venture firm.

Digitalsmiths announced the round in a press release yesterday. The company, based in Research Triangle Park, makes video indexing and digital content publishing technology. Its customers include Hollywood studios, websites, media companies and advertisers, according to the company’s website. It was founded by Ben Weinberger in 1998.

Earlier this month, Boston-based .406 announced its participation in a $10 million Series D round for Memento Inc., a Connecticut-based maker of fraud and compliance software. Other investors included Bain Capital Ventures and New York-based Rock Maple Ventures.

In October, Boston-based Business Intelligence Advisors Inc., an enterprise information security company with CIA roots, won a $12 million Series A round with investments from .406 Ventures, Boston’s Arcadia Partners LP and North Carolina-based Frontier Capital.