• by Mark Walsh  @markfwal, October 1, 2007

The funding continues to flow into online video ad startups. Video ad network VideoEgg received $15 million in September in venture financing led by Focus Ventures and including WPP Group and August Capital. VideoEgg focuses on serving video ads across online social networks including Bebo, Hi5, Flixster and Facebook.

The company will use the investment to expand its ad network and develop new ad formats. VideoEgg was one of the first sites to deploy the semi-transparent Flash overlay ads that drew much attention when Google introduced them in August on select YouTube video clips.

Advertisers partnering with VideoEgg to date include Ford, Nike, Unilever, Universal Pictures and Nestle.

Overall, market researcher eMarketer expects online video advertising to jump to $4.3 billion in 2011 from $410 million in 2006.