$15 Million For VideoEgg As They Redefine Their Business

VideoEggVideoEgg has just closed a $15 million series D round of funding led by Focus Ventures with WPP, Maveron, and August participating. VideoEgg cites plans to accelerate the development of their ad products and international sales network as the reasons behind the investment.

VideoEgg started off as a white-label video host, powering some notable web properties such as AOL sites, Bebo, hi5, Piczo, myYearbook, Dogster, Tagged and others. They then quickly incorporated an ad network. Like many other video startups, they did it through overlay advertisements (Yes, before YouTube). Startups are experimenting with other video ad formats <a href="“>as well. VideoEgg has been driving “significant” revenue through their overlay advertising.

Recently they applied that overlay model to Facebook as a new ad network, helping users monetize videos and applications. They reportedly pay a healthy CPM (developers have reported ~$8-10 CPM). Other Facebook ad networks include Lookery, RockYou, SocialMedia, and FB Exchange.

VideoEgg wants to continue developing their ad platform, moving from an impression model to an engagement model, while making ads more social. Although they remain tight lipped on the plans, ad networks on Facebook aim to make ads more engaging by tying virtual rewards to user’s contributions.