Dubai start-up gets capital boost

Tom Gara

• Last Updated: February 22. 2009 9:14PM UAE / February 22. 2009 5:14PM GMT

A Dubai digital media start-up has received a multimillion-dollar cash injection from IV Holdings, a Jordanian venture capital firm.

Content Syndicate, an internet platform that helps publishers and media professionals to buy, sell and syndicate digital media, has been operating from offices in Dubai since 2005.

Its business model – to connect those demanding content with those producing it – is being attempted by digital media syndicators around the world. But its founder, Maddy Reddy, said the ability to work with content in more than 200 languages, including those needed by fast-growing media markets in the Middle East and Asia, set the company apart.

“There is a huge untapped market for non-English content, beginning with Arabic,” he said. “We are the only ones who can create and sell content in so many languages.”

The company will help to translate content from newspapers, publishers and freelancers into languages demanded by its customers, utilising freelance translators as well as inhouse staff.

“There are loads of companies who are addressing part of the problem – the technology part, freelancers, copywriters,” said Mr Reddy. “But there is no one out there addressing the entire life cycle, from creating the content to selling it, managing it and licensing it.”

The company has offices in Europe, North America and Asia, and counts local businesses such as du, the Abu Dhabi Authority for Culture and Heritage (ADACH) and Standard Chartered Bank among its customers.

Yesterday, Mr Reddy confirmed that IV Holdings had invested a seven-figure sum in the company.

He said that would help Content Syndicate expand and build a larger base of users.

The company is now bringing in more experienced management, recruiting from industry heavyweights including Motorola and Sun Microsystems. “This is the time,” Mr Reddy said, “when boys become men.”

Dr Fawaz Zu’bi, the chairman of IV Holdings, said the company made a logical investment for his firm “with its disruptive business model, track record, strong customer validation and revenue”.

“Very few early-stage companies have this kind of amazing traction and robust business model,” he added.

IV Holdings has one of the region’s strongest track records in identifying promising start-ups. Last week, Conservus, a digital animation studio funded by the company, was given a major boost when it received new investment by Intel Capital, one of the world’s largest technology investors.

IV has also backed other well-known regional start-ups including Jeeran, one of the Arab world’s largest internet communities, which has attracted more than 1.3 million members. Shoofee TV, a Dubai-based online video site, was also funded by the firm.



tgara@thenational.ae