Aterlo Networks, a company that focuses on improving video streaming quality for all internet users, has raised $1 million in a funding round led by MaRS IAF.
BDC Capital and Sandvine also invested in the round. The funds will be used to expand product features and hire talent.
“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.
“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.
“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 theGoogle for Entrepreneurs and Rev Communitech programs, and is now in residency at the Accelerator Centre as it grows its team.