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 problem 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.
About Aterlo Networks:
Aterlo Networks builds technology that makes it possible for homes with bandwidth-limited or usage-limited broadband service to enjoy high-quality streaming video. Aterlo’s NightShift technology improves quality of experience for video subscribers and opens up new markets to content providers by extending the content delivery network into the customer premises. Please visit www.aterlo.com and www.gonightshift.com for more information.
About MaRS Investment Accelerator Fund (IAF):
The Investment Accelerator Fund (IAF) was developed in 2007 to build and strengthen Ontario-based businesses in the cleantech, ICT, and life sciences & healthcare sectors. The program invests in new companies with strong potential for rapid growth and with a competitive advantage. Funded by the Province of Ontario, the IAF program is managed by MaRS and delivered through the Ontario Network of Entrepreneurs.