InfoLibria Closes $50M Third Round

As Internet content evolves from text-based images to a multimedia swirl of video and audio, Internet service providers continue to search for the most effective way to deliver the broadband goods.

Having raised $50 million Dec. 8 in its third round of venture financing, InfoLibria Inc., a Waltham, Mass.-based provider of Internet infrastructure solutions, is taking a run at market leadership

Chief Financial Officer Bob Cirrone said the company plans to raise a smaller strategic round in the next few months in anticipation of an initial public offering later next year.

“We treated this past round like a public offering,” he said. “We put on a formal road show and plan to leverage that experience for the future.”

Sandler Capital Management led the Series C round, which was placed by CIBC Capital Partners, who also invested in the round. Additional first-time investors include Madison Dearborn Partners, Tudor Investment Corp., Boston Millennia Partners, GE Equity, NTT and PSINet. Existing investors that returned for the round include TeleSoft, Patricof & Co., Kemper and Adams Capital Management.

InfoLibria currently markets three products, including MediaMall, recently released, which enables ISPs to deliver TV-quality video and CD-quality audio. Proceeds from the Series C round will be invested in the commercialization of these products. The company currently has 20 customers, all ISPs, in North America, Europe and Japan. Cirrone said InfoLibria is in the early stages of developing products that facilitate e-commerce and online games, but stressed that the company is primarily concerned with supporting the products it has already released.

“The company’s immediate concerns are to get more customers and to ramp up sales,” said Doug Grissom, director at Madison Dearborn. “They have come out with three strong products, now they have to get out and prove the demand for these products.”