Funds News

China video site Youku nets $40 mln in funding

SHANGHAI, June 30 (Reuters) - Video-sharing Web site, which is trying to position itself as China’s next YouTube, has closed a funding round of $40 million, it said on Monday.

Youku said in a statement it had netted $30 million from existing investors Brookside Capital Partners, Sutter Hill Ventures, Farallon Capital and Chengwei Ventures.

The remaining $10 million is from a loan by Western Technology Investment, which has previously lent to online social network Facebook and U.S. search giant Google GOOG.O.

By November last year, Youku had completed three rounds of venture financing totalling $40 million, including from Brookside Capital, Sutter Hill Ventures, Farallon Capital and Chengwei Ventures.

Launched in December 2006, Youku has more than 100 million daily video views, according to research firm Nielsen/NetRatings.

China overtook the United States to become the world’s biggest Internet market with 221 million Web users by the end of February, according to the China Internet Network Information Center. (Reporting by Sophie Taylor; Editing by Edmund Klamann)