The round was led by Sevin Rosen Funds, with co-investors Noro-Moseley Partners, H.I.G. Ventures, Gray Ventures, the Yamacraw Seed Capital Fund and angel investors completing the round. EGT received $5.5 million in its first round.

The new funds will be used to market the EGT product to cable and satellite television operators in the U.S, and expand operations over time. “The venture capital climate is very competitive and this Series B financing puts EGT in a unique position as a well-funded young company addressing a tremendous market opportunity,” says EGT CEO Greg Nicholson.

EGT's digital television equipment for communications networks enables low bandwidth distribution and storage of the highest quality video. The company's first product is an MPEG-2 digital video encoder made for cable and satellite television markets. Currently, the company is in beta trials at the largest system operators.

The company claims that its product increases the channel capacity of networks that distribute high-quality digital video. This performance gain can be translated into higher quality service, or additional content and applications over the existing network infrastructure. “Our technology is a timely,” claims cofounder and Chief Scientist of EGT, Dr. Nikil Jayant. “As new applications and more services are offered over the same broadband networks, the bandwidth constraint will continue to be an increasingly limiting factor. Through our innovations in real-time compression, modular software and highly configurable hardware design, our customers can deliver a broad range of current and emerging services at higher quality over their existing networks. In the future, all digital video markets will benefit from our world-leading ability to provide the highest quality video at the lowest possible rate.”

The Atlanta-based company will launch its digital video encoder product into the cable market this summer. Soon after, the product will be customized for satellite and telecommunications networks.