New York-based Makeover Solutions Inc., a provider of online beauty services, has raised a $7 million first round from Village Ventures Fund, Rho Partners and Borealis Ventures. The service allows users to engage in virtual makeovers, while “trying on” various hairstyles and cosmetics. Its technology is also used at third party sites, such as iVillage and InStyle.com. Technically, the funding is being done via the creation of Makeover Solutions Inc., a new firm that is acquiring Toronto-based AI Media, the company behind Makeoversolutions.com. The funding will go to that transaction and to a planned re-launch next year as more of a web 2.0, community-driven destination. Release.