56.com, a Chinese video sharing site, has raised a $20 million second round, led by Hikari Private Equity and Susquehanna International Group China. Also participating were Adobe (NSDQ: ADBE) the CID Group as well as previous investors, Sequoia Capital and Steamboat Ventures, Disney’s (NYSE: DIS) VC arm. The raise comes a few months after the company took $10 million from Steamboat and Susquehanna. The funding will go towards product development, hiring, and the expansion of its technology infrastructure. A few weeks ago, competing video site Youku announced a $25 million third round. Release (pdf)
Billsdue: 56.com just rolled out a new feature (go to http://www.56.com and see the top banner ad) that allows a user to drag the play bar so you don’t have to wait to download the entire video to skip ahead. 56.com says they can do this because they own their own network/CDN end-to-end, unlike their competitors. Infrastructure may turn out to be the key point of differentiation for 56.com.