Video tech firm Skyfire raises $10 mln for Europe, Asia push

Oct 11 (Reuters) - Venture capital firm Panorama Capital and others have invested $10 million in video technology company Skyfire, which plans to expand into European and Asian markets on the back of surging usage of video on wireless devices.

Skyfire's technology compresses video, increasing the capacity of the base stations of telecommunication networks by more than a third.

Data growth on mobile networks is expected to rise almost 30-fold during next five years as consumers increasingly watch video on wireless devices. Vodafone Germany last month said 85 percent of data traffic on its network was video.

Earlier this year Panorama cashed in on their investment in BelAir Networks - which like Skyfire helps operators to manage the increasing data traffic - when Ericsson acquired BelAir.

Skyfire's previous investors - the venture arm of Verizon Communications Inc , Lightspeed Venture Partners, Matrix Partners and Trinity Ventures - put also additional money into the California-based Skyfire, which has now raised a total of $41 million.

(Reporting By Tarmo Virki in HELSINKI)

((tarmo.virki@thomsonreuters.com)(+358 40840 6235))