DivXNetworks raises $6 million

DivXNetworks, a provider of video compression technology, on Tuesday said it raised $6 million in a second round of funding, led by Los Angeles-based Zone Ventures. Other investors included venture capitalist Tim Draper, Draper Atlantic, Wasatch Venture Fund and WI Harper Group. DivXNetworks, whose technology helps deliver full-motion video over Internet Protocol (IP) networks, plans to use the funds for sales, marketing and product development, as well as to expand into Asia and Europe. Since its founding in 1999, the San Diego-based company has raised a total of $11.5 million.

The funding comes just months after the company launched DivX 5.0, its latest technology to compress video clips into small files so they can be easily transferred over the Web.