Online DVD rental
outfit Video Island has raised a further £5m in backing from
EVP, Europe’s leading venture debt provider. The funding takes the total amount
raised by Video Island to over £15m. EVP joins current equity
investors Benchmark Capital, Cazenove Private Equity and Index Ventures.
funding will be used to expand Video Island’s DVD library,
to invest in current operations and will be earmarked for potential
acquisition opportunities. Video Island CEO Saul Klein said: "Having
already raised £10m, Video Island has always recognised that
building a scaleable and substantial business in this sector is
both extremely capital intensive and requires total operational
focus combined with highly specialist expertise.”
Island, founded in September 2003, runs its own consumer brand ScreenSelect.co.uk
as well as providing online DVD rental services for companies such
as Tesco, MSN, ITV and easyGroup.
It claims a library of over 32,000 titles and makes nearly 1.5m
shipments per month - the online equivalent of 150 high street stores.
According to Screen Digest, the online video rental business has
expanded dramatically in the last few months and is estimated to
be on track to represent 15% of the total UK rental sector this