TV-for-business startup Atmosphere raises $100 million in funding to grow its customer footprint

TV-for-business startup Atmosphere raises $100 million in funding to grow its customer footprint

Published: 06-01-2022 12:42:00 | By: Bob Koigi | hits: 572 | Tags:

Atmosphere, the worldwide player  in streaming TV entertainment for businesses, has announced a new $80 million Series C funding round, led by Sageview Capital with participation from existing investors, Valor Equity Partners and S3 Ventures, as well as a $20 million debt facility provided by Bridge Bank. In total, the company has now raised over $140 million.

As part of this latest round, Dean Nelson, Senior Partner at Sageview, will join the company’s board of directors and Roberto Avila, Principal at Sageview, will join as a board observer.

Atmosphere’s announcement comes as the company doubled its customer footprint over the past year, streaming more than 250,000 hours per day in aggregate and reaching more than 20 million unique viewers each month.

Currently, the company’s free ad-supported streaming platform provides short-form, audio-optional programming across 64 channels to over 18,000 restaurants, bars, gyms, doctor offices and other venues worldwide, including Meineke Car Care, Burger King, and Texas Roadhouse.

The Series C funding will be used to gain additional distribution scale, while continuing to enhance and build the company’s operations across content, marketing, and ad sales.

Optimized for viewing in public spaces, Atmosphere’s engaging content encompasses viral video compilations, extreme sports, lifestyle, art, ambient nature and entertainment. The content includes both owned-and-operated channels such as Chive TV, Happy TV, and Atmosphere News, as well as those created with partners including Red Bull, X Games, and America’s Funniest Videos.

Dean Nelson, Senior Partner, Sageview: “We were impressed with Atmosphere’s unique strategy for connecting advertisers with hyper-focused markets. We believe their capabilities will be well-received among advertisers and businesses that adopt the service. Given the company’s proven business model and strong growth, we’re excited to partner alongside Atmosphere at a stage when scaling its operation is most critical.”

Atmosphere provides hardware and programming to businesses for a one-time $99 activation fee, then monetizes content through its proprietary advertising platform and paid digital signage program which allow venues to run their own advertising between content. The company’s vertically integrated distribution model offers highly attractive unit economics by owning the customer relationship, device, content channels, product delivery, and ad tech.

Leo Resig, co-founder and CEO,  Atmosphere: “Since the invention of the TV, no one has stepped up to create content specifically for an audio-less viewing experience in businesses. Our partners at Sageview, Valor and S3 share our passion and vision to take the entire third space by storm. Wherever there is a TV screen, customers, and dwell time, Atmosphere should be streaming in that business. Atmosphere is the perfect solution for businesses who want to elevate their space and advertisers who are looking to get in front of an increasingly unreachable TV audience.”

Through dynamic contextual, geographic, and demographic targeting, Atmosphere reaches the right audience when they are most open to an advertiser's message, juxtaposed to premium, curated and time-tested entertainment content.

John Resig, co-founder and president, Atmosphere:  “After years of building our distribution network, our team has set the gold standard for how consumers, businesses and advertisers can engage with streaming services in public places. The third space is the last great frontier of tech. We’re excited that our capital partners share this vision and are looking forward to creating more opportunities for our platform to creatively engage with consumers in order to accelerate Atmosphere's mission to elevate our customers’ space.”