Sonic Foundry Raises $24 Million in Private Financing

Sonic Foundry (http://www.sonicfoundry.com) announced it raised $24 million in a private financing led by RS Investment Management and Capital Trust Management.

Last year software maker Sonic Foundry launched its encoding business, Sonic Foundry Media Services. According to the company, business has been doing well.

"The funds from this transaction, combined with the proceeds from our warrant conversion, will help us realize the potential for our Media Services division," said Rimas Buinevicius, chairman and chief executive officer of Sonic Foundry. "We continue to build the infrastructure needed to support full-scale service and systems offerings for audio and video content conversion."

The company said proceeds from the financing will be used for operational and research and development expenses.