VCs Open Wallets for Eyespot, Mind Candy

It’s been a big day for Web 2.0 funding announcements. This morning we posted on Series A closing at $3 million for GotVoice. Now San Diego based online video editing service Eyespot has announced closure of its own first round of funding. The funding was led by Silicon Valley firm Gabriel Venture Partners to the total tune of $3.7 million. VentureBeat appears to have broken the story.

eyespot logoEyespot offers drag and drop flash video editing direct to consumers and in partnership with companies like and Veoh. Competitor Jumpcut was acquired by Yahoo! last month. From cell phone ring tones to short video clips, online multimedia editing is clearly being bet on as the next step for the YouTube generation. Veoh has Michael Eisner and Overture’s last CEO Ted Meisel on its board. is the foundation of CNN’s new citizen video initiative. Partnerships like this make Eyespot look like VideoEgg, the company that provides browser based video capture to social networking sites from Bebo to Dogster. Liz Gannes reports that Eyespot also has partnerships with Lions Gate Entertainment, Current TV, Zomba/Jive, TVT, Columbia, Epic, Island Records, and Concord Records. What a list!

TechCrunch UK broke a funding story today as well. Online gaming company Mind Candy has announced that it’s raised $7 million from Accel Partners, Index Ventures and NewMedia Spark. Mind Candy has created a very popular game called Perplex City. The game incorporates real world events, websites, text messages, TV, print and a wide range of other media to create an immersive gaming experience, says TechCrunch UK’s Sam Sethi. For details on the company and its plans for expansion based on this funding, see Sethi’s coverage.