RealTime IT News

RioPort Wins New Funding

RioPort Inc., a music application service provider, Monday secured $31.5 million in second-round financing.

EMC Corp. , Quantum Technology Ventures and Mitsubishi Corp. have joined RioPort's first-round investors, S3 Inc. , Vulcan Ventures Inc. and Oak Investment Partners.

The funds will be used to continue building RioPort's Pulse One Service, which is designed to provide record labels with a "digital one-stop" for securely delivering their content to consumers via a network of e-tailers. The e-tailer network includes MTVi Group, House of Blues, iTURF and Ministry of Sound, among others.

Money also will go toward building technology for music appliance manufacturers, according to James Long, president and chief executive officer of RioPort Inc.

"The financing provided by our new and returning investors will provide the capital and strategic partnerships RioPort needs to build its momentum as the leading music ASP in this emerging market," he said.

The second-round venture capital was provided by Oak Investment Partners, a venture capital firm, and Vulcan Ventures Inc., the investment organization of Paul G. Allen, both of which were lead investors in RioPort's $30 million first-round financing in October 1999.