$34.7 million in venture capital before being acquired in 2009. PitchBook +1 Funding Overview DVDPlay’s capital history was marked by steady investment from prominent venture capital firms during the peak of the physical media rental era: Total Funding: ~$34.7 million. Key Funding Rounds: Series A (2003): Raised $4.3 million. Venture Round (2006): Secured $20 million to fuel aggressive expansion in major retail markets like California. Later Stage VC (2007): Continued growth funding as it scaled its network to roughly 1,300 kiosks. Startup Ranking +3 Notable Investors The company was backed by a syndicate of eight investors, including PitchBook : El Dorado Ventures Emergence Capital Partners Palo Alto Venture Partners Vanguard Ventures BlackHawk Capital Management Venture Capital Journal +5 The 2009 Exit In December 2009,
Oak’s thesis was simple: Redbox would eventually raise prices, and DVDPlay’s 1,100 kiosks would become a valuable “second screen” network for indie films and local advertising. It was a thesis that ignored the coming reality: streaming. dvdplay funding
The funding had bought growth, but not profitability. Venture Round (2006): Secured $20 million to fuel
The closed in October 2009. The terms were apocalyptic: It was a thesis that ignored the coming reality: streaming
Founded in 2001 and based in San Jose, California, DVDPlay entered the market with a simple premise: movie rentals should be cheap, convenient, and automated. Their kiosks were designed to be placed in grocery stores, drugstores, and fast-food lobbies, offering DVD rentals for roughly $1 per night—significantly cheaper than the $4+ charged by traditional video stores.
In January 2012, DVDPlay filed for Chapter 7 liquidation. Total capital raised across all rounds and debt: . Total recovered for secured creditors: $3.1 million (mostly from selling kiosks for scrap metal and disc inventory to a liquidator in Texas). Unsecured creditors, including the Oregon drivers who had been paid in stock options, received nothing.