In 2021, Plex, a streaming media software maker, announced a significant funding milestone by raising a $50 million growth equity round. This funding was provided by the existing investor Intercap. The capital raised was primarily aimed at fueling Plex’s expansion into ad-supported streaming, rentals, purchases, and subscription content.
This funding round, noted as Plex’s Series C, marked the first financing for the company since 2014. Of the $50 million, $15 million was allocated as new growth capital. The remainder was used to purchase shares and options from Plex’s early seed investors and shareholders from prior acquisitions, offering some liquidity to the company’s earliest employees.
Plex, which began as a software for organizing movies, TV, music, and photos on home networks, has been making strides in targeting a broader market. The company’s efforts include expansion into free, ad-supported streaming, and in 2020, Plex launched a live TV service supported by ads.
The expansion and diversification of Plex’s services also involved modifications to their business model. For example, for their ad-supported video or live linear streaming service, users no longer needed to sign up for an account, which impacted how Plex approached customer acquisition.
With this funding, Plex planned to invest in marketing and monetization teams, as well as development, aiming to grow its then 100-person team. The company’s CEO, Keith Valory, highlighted the importance of amplifying efforts in performance and growth marketing, especially for the ad-supported business segments.
Plex’s approach to becoming a one-stop shop for all media needs reflects an ambitious vision to simplify the user experience in an increasingly fragmented streaming landscape. The investment from Intercap was seen as a long-term commitment, recognizing the potential for growth amid the changing dynamics of the streaming industry.