Aterlo Networks Inc, a technology startup focused on improving video streaming quality for Internet users, has raised $1 million in financing. The round was led by MaRS Investment Accelerator Fund, a seed-stage fund managed by Canadian innovation hub MaRS Discovery District. BDC Capital and Sandvine Inc also invested. Waterloo-based Aterlo said the funds raised will be used to expand its flagship product, NightShift, hire local talent, and extend the reach of its marketing initiative. Founded in 2014, the company is led by CEO Gerrit Nagelhout.
Aterlo Networks Raises $1M in Funding Round
Aterlo Networks Raises $1M to Extend Streaming Video to 30M + Households Currently Unable to Stream Buffer-Free HD
WATERLOO, Ontario (March 23, 2016) – Aterlo Networks, a company that focuses on improving video streaming quality for all internet users, announced today that it has raised $1M after closing a funding round led by MaRS IAF. BDC Capital and Sandvine also invested in the round. These funds will be used to expand the features of NightShift, hire local talent, and extend the reach of their marketing initiative.
“Aterlo Networks has the opportunity to offer millions of people with small data caps and lower bandwidth in the U.S. and Canada a solution to streaming high definition video,” said Dan Mathers from MaRS IAF. “Aterlo’s product solves a problems faced by millions of people in both urban and rural environments, which means that there is a high potential for the company to build a scalable business.”
There are approximately 30 million high speed internet subscribers in the U.S. who receive less than the 5 Mbps required to stream a single video in high definition (HD).
“Internet subscribers not being able to stream high definition video is a much bigger problem than most people realize,” said Gerrit Nagelhout, CEO of Aterlo Networks. “Their bandwidth is almost high enough to stream it, but it just misses the mark. Streaming just an hour of HD video a day uses 3GB, so many households very quickly collide with their data caps.
With 4K video content coming and the desire for several video active video streams, the problem will only get worse.”
Aterlo Networks has been providing their solution to these people for a year and half with its NightShift product. More than 200 satellite internet dealers are offering the product to their customers.
NightShift pre-loads video during off-peak hours so the content is stored closer to the subscriber. In many instances, these times also coincide with free zones offered by ISPs, so all of the downloading is done without impacting the subscribers datacap.
“NightShift doesn’t interfere with the DRM set in place by the streaming video provider. A valid subscription and active connection to the provider is still required,” said Dan Siemon, VP production management of Aterlo Networks. “We’ve worked very hard to build a solution that is friendly to video streaming providers and doesn’t break DRM or enable copyright violation.”
Aterlo has incubated in the Google for Entrepreneurs and Rev Communitech programs, and is now in residency at the Accelerator Centre as it grows its team.
By Robert De Medeiros, Aterlo Networks Inc
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