Asian streaming startup M17, nonetheless recovering from a failed IPO, raises one other $25M –

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M17, the Taiwanese streaming firm that controversially priced on the NYSE however didn’t record, has returned to the non-public markets after it raised a $25 million funding spherical.

The spherical was led by Terry Tsang — CEO of Hong Kong-based video games firm Madhead — with participation from Pavilion Capital, Stonebridge Ventures and present traders. This new funding follows a $35 million funding in June, which got here only a week after the botched IPO. There’s probably extra coming: M17 stated it expects to obtain “extra funding” within the subsequent two months.

When it filed to go public again in June, M17 initially aimed to lift $115 million however weak curiosity noticed that determine minimize to $60 million. (That sum is matched by these two rounds.) However even that didn’t occur as the corporate priced, rang the bell (with pictures) however in the end didn’t debut. It formally blamed “settlement points” though founder Jeffrey Huang took to Fb to lash out at funding banks Citigroup and Deutsche Financial institution who he blamed.

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Again to the right here and now, M17 stated that it’s heading in the right direction to guide $170 million in gross sales for this 12 months. That’s up from $79.5 million in 2017, though the enterprise posted an total lack of $36.four million for the 12 months. The corporate didn’t give steerage on its anticipated revenue/loss for the 12 months.

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M17 is the corporate’s most profitable unit, nevertheless it does additionally different companies together with courting through Paktor — which merged with M17 final 12 months. General, M17’s income grew impressively to succeed in $37.9 million within the first quarter of 2018 however that got here with a $24.eight million loss, based on the itemizing doc, which underlined the problem of constructing the enterprise worthwhile.

Added to that, funds have been (probably nonetheless are) tight.

On the time of its itemizing software, M17 stated it had $31.four million in money and money equivalents so these funding rounds are pretty important to the agency. Nonetheless, the corporate stated it plans to take a position the capital on development, together with infrastructure and options, assets and “coaching,” and enlargement into the U.S.

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M17 has launched two new apps, a TikTok -like brief video service referred to as PiePie and, for the U.S. market, a streaming app referred to as LiveAF. In case, you’re questioning, that’s Stay Inventive Freedom fairly than every other phrases you may be considering of.

The corporate stated it has some 600 workers unfold throughout seven places of work in Taiwan, Singapore, Hong Kong, Japan, South Korea, the U.S, and Malaysia.

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