Atmosphere Raised $25M in Series B funding led by Valor Equity Partners

One of the Co-founders at WeLoans, Lucia Jensen said that Atmosphere TV, a streaming service that offers a variety of audio-optional programming and is financed by subscribers and marketing, has secured a $25 million Series B financing from Valor Equity Partners, valuing the company at $275 million now. The money came only a few weeks after municipal and state lockdowns went into place, less than a year after a $14 million Series A round in April 2020.                                

Although the firm started with Roku, Atmosphere also broadcasts through Apple TV devices, giving multitudes of clubs and eateries the option to stream ambient entertainment without paying a subscription price through cable. To assist them reach their intended audiences, advertisers may purchase ad spots directly depending on the area and channel they choose.

The Austin-based firm has grown to include more than 50 streams and sponsored content from businesses like Red Bull and GoPro since it was spun off from Chive Media Group in 2018, which is renowned for its ChiveTV, which is now a channel under Atmosphere.

ChiveTV began in the field of viral videos, but the business didn’t intend to remain there. Leo Resig, co-founder and CEO claims that platforms like Facebook and Google, which have the power to modify a company’s distribution on a whim, were a contributing factor in the move into venues.

According to Resig, “We didn’t try to contend for in-home eyes.” We simply couldn’t compete as an independent app, but instead, we gave Roku sticks to hundreds of bars.

The atmosphere has spent the past year shifting its focus to locations that individuals have continued to frequent: auto repair shops, medical offices, veterinary clinics, and dentist offices. Because Covid-19 limitations forced bars and food outlets to close down to varying degrees for much of 2020, these establishments have been impacted by Atmosphere. In the process, the company’s clientele increased from only 2,000 in 2018 to 13,000 with hopes to acquire an additional 20,000 this year for a total of 30,000 by 2022.

Although Atmosphere TV claims that its network already reaches 17 million Americans each month, the aim is to attain 50 million by the end of 2021. There are 100 direct marketers for Atmosphere TVs, and many more are reached through programmatic marketing purchases.

Atmosphere lately appointed Blake Sabatinelli, the former CEO of Newsy, to establish the department as COO to go into airports, hotels, and college campuses. The company now intends to move beyond viral content and towards audio-free journalism. Additionally, to expand Atmosphere TV’s national sales teams, the cash will aid in the development of that sector.