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The Oregonian

Aug. 27--A Portland company that wants to let couch potatoes reach out and touch their favorite television shows plans to announce $18 million in new venture capital investment today.

Ensequence Inc., started in 2000 by executives from Intel Corp. and other Silicon Forest technology companies, makes software for so-called interactive television. The company's system is designed to work on digital cable and digital satellite boxes, allowing companies that create television content to work interactive features into their programming.

For example, viewers of contest-oriented reality shows could vote through their interactive TV screens -- and see their choices tallied immediately -- rather than cast their votes by phone. Ensequence's technology could allow them to request more information on a topic covered on a particular program.

The $18 million in new investment is led by $7.5 million from private equity firm Westbury Partners of Long Island, N.Y. It comes on top of $19 million in private funding Ensequence had attracted previously.

Venture capitalists became tightfisted after the dot-com bust, and relatively few Oregon startups have won new investment in recent years.

There have been a handful of new funding announcements recently, however. Most recent was PolyServe Inc., of Beaverton, which announced $20 million in new investment last week.

Ensequence founder and chief executive Dalen Harrison said his company has spent much of the past four years customizing its software to work on a variety of digital set-top boxes. He said the company hopes its technology will become an industry standard, broadly used by networks and TV producers.

Approximately 60 million U.S. homes have digital set-top boxes for cable or satellite TV, according to Gerry Kaufhold, principal analyst with communications research company In-Stat/MDR. Nearly all of those could potentially access interactive broadcasts that employ Ensequence's software.

Interactive programming is relatively rare, but Kaufhold said he expects it will be increasingly popular as broadcasters seek new ways to engage their audiences.

"Just because of the competitive nature of the television market, interactivity is going to be a bigger and bigger differentiator," he said. "These interactive features just help you feel like you're getting a personalized version of your content."

Ensequence's technology is being used in England, according to the company, but no U.S. producers have signed on yet. Harrison, though, said he expects to announce a U.S. deal by the end of next month.

Ensequence has 62 employees, including 50 in its downtown Portland offices.

The company has not disclosed revenues. Harrison said Ensequence is not profitable yet but expects to be in 2005 and doesn't anticipate another round of venture capital funding.

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