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Video - Monday, November 16, 2009

Set-top Box Maker Sezmi Raises $25M

Belmont, CA's Sezmi has raised $25M in third-round funding. Sezmi is a set-top box manufacturer whose personalized service combines live TV, video-on-demand services, and Internet video. Sezmi launched a three-month trial in Los Angeles today. Sezmi had done a trial in Seattle and considers it LA trial a soft-launch.

Sezmi also rolled-out its pricing plans: $299 for the box itself, which includes a terabyte PVR and integrated HDTV antenna. The company will also charge $4.99 per month for Sezmi Select, its video-on-demand service; and $24.99 per month for Sezmi Supreme, which is comparable to a cable subscription.

An unnamed strategic investors was joined by return backers Morgenthaler Partners, Index Ventures, Legend Ventures, Omni Capital and TD Fund. The company previously raised around $53M, including $33M just last year.

It all sounds cool - live TV plus Tivo level of functionality. The challenge we think is that Sezmi has no brand. Sure they have raised a lot of money but they will need a lot more to help consumers overcome their lack of knowledge. Blanket dvertising spend for Ooma has seems to be working but Ooma's differentiation is very clear whereas we think that it will be hard to explain Sezmi.

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