Overlay.TV, which customizes online video by layering on additional content and ads, has raised $4.6 million in a second round of venture financing from existing investors Celtic House Venture
Partners, Tech Capital Partners and EdgeStone Capital Partners.
The Ottawa, Canada-based company said the funding would be used to continue its efforts to help monetize user-generated
content and to expand into premium content and brand partnerships. Overlay.TV's platform allows anyone to add contextual information directly into video content to help boost audience engagement.
Since launching in September after a six-month beta program, the company said thousands of Overlays have been embedded in blogs, Web pages, e-commerce sites and social networking profiles. It has
formed partnerships with media companies including Nettwerk Music Group, Hollywood Records, KidzBop and Transcontinental Media.--Mark Walsh