The funds have been raised from YooMedia's existing management team, other directors and shareholders in the company, and could be extended to £2m, subject to shareholder approval.
Last year, YooMedia axed 19 members of staff, leaving 33 people working at the company, as it sought to reduce running costs by 35%.
Michael Sinclair, chairman and CEO of YooMedia, said: "Against adverse market conditions we have managed to secure substantial funding. We have achieved our targets and made significant steps in creating a robust business."
The company, which provides services including games and dating products for digital broadcasters, has recently signed agreements with Dateline, an offline dating agency; Turner Broadcasting, to create games for the Cartoon Network; and the Office of the Deputy Prime Minister, to help with trials of electronic voting through television.
"YooMedia is poised to benefit from the growth of digital TV in the UK and the widening acceptance of digital TV, and our determination to succeed is clearly shown in the number of significant contracts we have secured recently," Sinclair said.
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