Dvdplay Funding Extra Quality May 2026

| Round | Year | Amount | Lead Investor | Notable Terms | Outcome | |-------|------|--------|---------------|----------------|---------| | Series A | 2006 | $4.5M | Voyager Capital | Full ratchet, board seat | Burned for expansion | | Mezzanine debt | 2008 | $3.0M | Wellington Financial | 14.5% interest, convertible | Defaulted | | Studio rev-share | 2008 | $2.0M (imputed) | Lionsgate/Warner | 15% of revenue | Raised COGS to 47% | | Series B | 2009 | $12.0M | Oak Investment | 2x liquidation pref, pay-to-play | Lost on streaming pivot | | Convertible notes | 2011 | $2.5M | Portland angels | 20% discount, $0.25 floor | Converted to zero | | | | $24.0M | | | Recovery: $3.1M |

The initial funding model was almost quaint: . Each machine cost $12,000 to build and $500 per month to service. If a kiosk pulled in $1,200 a month (roughly 40 rentals at $1.50 per night, plus late fees), Phillips plowed 90% of that back into building the next machine. By 2004, DVDPlay had 47 kiosks in Oregon and Washington. They were profitable, but tiny. dvdplay funding

Then came Redbox. In late 2005, Redbox—then a joint venture between McDonald’s Ventures and Coinstar—rolled out 800 kiosks nationwide, pricing rentals at $1.00, undercutting DVDPlay’s $1.50. Overnight, Phillips’ bootstrapped model became unsustainable. He needed scale. He needed funding. | Round | Year | Amount | Lead