The 2007-founded, New York-based startup Animoto – which allows users to amalgamate their images and music, thereby creating videos – has raised a substantial $4.4 million in Series B funding round led by Madrona Venture Group. Other investors in the recent funding round include Bruce Livingston, Amazon and SoftTech VC.

Talking about the new capital raising, Animoto CEO Brad Jefferson said that, with an already proven business model, the company intends speeding up all its activities and “push harder” for expansion. 

Ever since it began operations, Animoto has been enviably achieving the dual aim of gaining users as well as making money. Thus far, the company has been able to sign up nearly 750,000 users; out of which almost 10 percent are paying customers. At Webby’s this year, Animoto won both the Judges Choice and People’s Voice awards for Best Services & Applications.

Animoto, which has been running ‘cash-flow positive’ since December 2008, will use new funds to tread on a more diverse track, going in for a more extensive distribution policy with more partnerships – including the one with iStockphoto, founded by Bruce Livingstone.

Jefferson said: “We really believe we’re at the tip of the iceberg for cinematic artificial intelligence technology. We want to allow users to create high production video that tells a story. That has the feel of a short form documentary.”