Not to be outdone by competitor Adap.tv’s launch today, video ad startup ScanScout announced it had added $7 million in its first institutional round of funding from General Catalyst Parters, Ron Conway, and First Round Capital. The company had raised $2.3 million in angel funding a year ago (See our profile from last month.)
ScanScout’s video ad unit (at left) is quite similar to the one Google has begun playing with on YouTube: a text ad that telescopes into a video ad overlaid on what the user is watching. ScanScout, however, promises relevant ad targeting based on audio analysis and other methods; the YouTube ad we saw was for Cingular on a My Chemical Romance video; not too much relation there.
The competition is getting fierce in this young space; last week when we talked to Adap.tv CEO Amir Ashkenazi he dismissed ScanScout for being slow to get its product on the market. ScanScout said its new funds are to be put towards product development and staffing.
Note: This article was corrected to indicate that the image above is from ScanScout.