Media Excel Inc., which makes hardware and compression software for delivering broadband television, has raised angel funding from San Antonio business executive Red McCombs. The company isn't disclosing the amount of the round, but in a statement McCombs says, "We believe that digital video will be a key contributor to the growth of the broadcasting, Web and telecommunications industries."

With the co-founder of Clear Channel Communications Inc. backing the company, Media Excel gains credibility, which should translate into getting in the doors of large firms that are deploying broadband television equipment. But there's lots of competition. There are so many intellectual property firms offering compression techniques that it's hard to imagine any one of them generating a large exit for investors, rather than a continued revenue stream from licensing its algorithms. Perhaps this is why many compression companies are backed by angel investors, who may be more patient than venture capitalists. —Stacey Higginbotham

See Sept. 2005 story from TheDeal.com

Tags: vc, venture+capital