YouTube Competitor, Vessel, Raises Another $58 Million

The YouTube competitor company, Vessel, that is headed by former Hulu CEO Jason Kilar is still a company that is exploring a business model. Are people really ready to pay a subscription fee of $3 a month to gain early access to videos that go free for the rest of the web after three days?

The question is certainly something that needs more exploration and in order to do that Kilar has successfully raised another $58 million in a new round of founding led by Institutional Venture Partners. This second round of funding has come within a year of an earlier round of $79 million. Jeff Bezos, Greylock and Benchmark have participated in both the rounds.

The total worth of the company is somewhere around $140 million. The company has not detailed about what it is doing with the money it is collecting but it is a safe guess that most of the money it is spending to acquire content for the website, both subscription stuff and free stuff.

Vessel has been trying desperately to sign content deals but so far YouTube is giving it tough competition by using things like promotional muscle and cash etc to ensure that its home grown stars do not head over to Vessel. Reportedly YouTube is also working on starting its own subscription service.

Filed in: Web

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