VideoEgg Gets a Jolt of VC

With $12 million from the Starbucks chairman's venture capital firm and other investors, the startup capitalizes on the rise of Web video

Seeing riches in the Web's sudden emergence as a mainstream vehicle for video, a venture capital firm co-founded by Starbucks Chairman Howard Schulz has agreed to invest millions in startup VideoEgg, BusinessWeek.com has learned. The round of investment is being led by Maveron, a $600 million VC firm based in Seattle. It also includes Silicon Valley's August Capital, whose latest fund has about $550 million. Several unnamed private investors are joining the round.

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