Red Herring
CEO Jonathan Taplin | Founded 1996 | Employees 60 | Santa Monica, California | 310/202-2900 |

Red Herring, January, 1999
Market/product: Provides on-demand movies, TV programs, and music and develops e-commerce software for use over broadband PC and cable TV networks. In February, completed first cable modem trial in a joint venture with Comcast. Service runs on any server and stores 500 hours of programming at all times, 20 percent of which will be updated monthly. Uses Firefly's filter technology, which makes programming recommendations. Service over Comcast's and US West's cable networks was scheduled for a limited regional rollout by the end of 1998; distribution method will vary based on availability. Partners include Comcast, US West, Sony, Intel, NBC, and Veon. Competes with Liberty Interactive and @Home.

Finance/strategy: Prerevenue. Raised a first round in February from Intel and Comcast. Raised a second round in April from US West, Sony, and prior investors. Raised a third round of $3 million in July from NBC and GE Capital in exchange for a 6 percent equity stake; both investors will have options to buy up to 19 percent of the company for $75 million in the next 18 months. CEO was previously a tour manager for Bob Dylan and a producer for the director Martin Scorsese.