You.i TV has added another marquee investor as the Ottawa software firm scales up its business helping broadcasters and content creators reach audiences through a range of digital platforms.
The company, officially known as Youi Labs Inc., said Tuesday it has raised US$23-million in growth capital led by Causeway Media Partners, a venture capital firm headed by two co-owners of the Boston Celtics basketball team, Wyc Grousbeck and Mark Wan, and Bob Higgins, co-founder of Boston investment firm Highland Capital Partners.
You.i’s previous investors, including WarnerMedia and Los Angeles investment firm Kayne Anderson Capital Advisors, also participated in the financing.
The new investment led by Causeway, which is backed by several U.S. professional sports team owners and focuses on investing in sports technology and media companies, reflects a recent shift in You.i’s business, said You.i CEO and founder Jason Flick.
You.i had earlier set out to help broadcasters navigate the widespread disruption to their business. It provides a software engine similar to that used by video game developers. Essentially, its technology allows broadcasters to use a common computer code to build digital platforms for viewers to access content, whether through set-top boxes, smartphones, tablets, desktop computers or video-game consoles. Its customers include Fox, AT&T, WarnerMedia and Twitch.
Thanks to industry word of mouth, the last two years have seen You.i make a deep push into the sports world, as professional leagues and individual teams including the National Basketball Association and National Football League increasingly turn to producing their own media properties pumped directly to viewers over the internet. Sports properties now represent more than 30 per cent of You.i’s business, up from zero in less than two years, said Mr. Flick.
That caught the eye of Causeway’s principals when You.i went out to look for investors earlier this year. “We’re seeing all these teams and leagues trying to figure out what to do … to engage the consumer better and being able to understand that consumers will watch things in many different ways … on the phone, over many types of boxes," said Causeway’s Mr. Higgins. "If you’re going to [do that] you need to be able to do it quickly and be able to scale. That’s what we liked about You.i, they [offer] the development environment that allows your app to look good on all boxes, and as you make changes or innovate, it’s easy and quick and cheaper” than alternatives on the market. “We didn’t find other companies out there doing it in this fashion.”
Mr. Flick said his company, which has close to 200 employees, will use the proceeds to hire about 100 more people in the next 18 months. The company declined to disclose recent sales figures but has said previously it surpassed $20-million in revenues in its 2016 fiscal year.
Sean Silcoff