A Chicago startup that makes it easier for people to produce livestream video raised a new round of funding on the heels of a partnership with Microsoft.
Lightstream, founded in 2014 and led by CEO Stu Grubbs, announced Tuesday that it has raised $8 million in Series A funding led by Columbus-based Drive Capital. Other backers include MK Capital, Pritzker Group and Silicon Valley Bank. The startup has raised nearly $10 million to date.
Originally launched as Infiniscene and a member of the 2015 Techstars Chicago cohort, Lightstream has created cloud-based tools to help gamers and other video creators produce live content. It landed a deal last year with Microsoft that allows Xbox users to easily livestream content on Mixer, Xbox's streaming platform that's similar to Twitch.
Lightstream's product, called Lightstream Studio, makes it easy for gamers to stream their gameplay in just a few clicks. Users can customize their streams with images and overlays, allowing players to make professional-quality livestreams without needing any technical know-how.
The Microsoft deal provided a major boost for the Chicago startup, as Lightstream says it nearly quadrupled the number of content creators who used its platform last year. Users streamed 8.5x more hours in one month of 2018 than in all of 2017, the company said.
Lightstream's easy-to-use streaming technology has uses beyond gaming, and the startup is in talks with linear TV channels, professional sports leagues and even aerospace companies about handling their livestreaming needs, Grubbs said. By eliminating expensive hardware and traditional live TV equipment like satellite trucks, Lightstream aims to make it easier for a variety of content creators to go live.
"We’re the only live video manipulation engine in the cloud that's cost effective," Grubbs said.
Lightstream is using the new funding to grow its team. It recently hired Jenny Farver to be the company's chief technology officer. Farver was previously the CTO of Chicago startup Popular Pays, and before that was the VP of engineering at Civis Analytics.
