Scrapblog, a startup that lets you build rich Flash-based online scrapbooks, has closed a $4 million funding round led by Disney’s Steamboat Ventures and Longworth Venture Partners. The round brings Scrapblog’s total funding to $7.5 million.

Scrapblog offers an online editor that allows users to decorate their scrapbook with text, images, colorful themes, and other embellishments, which can then be shared on the web or printed out. The company was first introduced back in 2006, briefly went offline, and relaunched in March 2007. Now it has grown to nearly 2 million registered users who have created over 4 million scrapblog pages. The site has partnerships with major media sites including Disney, Discovery, Photobucket, and ABC.

The site generates revenue through scrapbook printing, sponsored promotions, and a recently launched virtual goods market called the Scrapblog Marketplace. The marketplace allows users to purchase designs from leading artists to decorate their scrapbooks, and has been likened to an “iTunes for Scrapbooking” – a strange description, but one that certainly appears to the niche scrapbooking demographic.