Blackstar, the Belfast based online DVD and Video retailer, has received second round funding of £6.5 million sterling, valuing the company at £20 million.

Chief executive, Mr Darryl Collins said the funding would assist Blackstar in its continued expansion in the UK market. The company is forecasting a £15-20 million sterling turnover in 2000 and Mr Collins said it would achieve profitability by the third or fourth quarter of next year.

The second round funding came from existing investors, including Tarrant Venture, investment vehicle of Texas Pacific, Atlas Venture, a US based investment fund and a number of private investors in Dublin.

Chairman of Blackstar, Mr James Osborne also holds a substantial stake in the company.

The company is planning an IPO near the end of this year or early next year depending on market conditions.

Blackstar, which was set up in 1997, now employs more than 100 people in Belfast and has more than 200,000 customers in 140 countries.