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VideoEgg, one of the leading video solution provider that has also built an enviable video ad network, announced a strategic investment round from WPP, one of the world´s leading communications services groups. The details of the investment were not disclosed.

VideoEgg initially started as a video editing and publishing service. The VideoEgg Publisher allowed users to easily capture, edit and publish videos anywhere on the web, across any social network. Thus removing the complexity of video formats, editing softwares and players. VideoEgg is powering the video hosting/streaming for dozens of other websites, including Bebo, AOL, Dogster and many others. Rather than create yet another video destination site, VideoEgg lets any website owner integrate video into their site for free – providing the hosting, transcoding, editing seamlessly. In a way VideoEgg adopted the same approach to video that Photobucket adopted for photos, i.e to become a back end storage space for other social networks and online communities. Since this space is usually hidden away from geeks and rarely comes to light, we ought to see very little competition in companies trying to do backend jobs. However the success of Photobucket proves the point that the online photo and video game will be won by a company that works with existing destination sites rather than building competitive new destinations.

VideoEgg later build up a video ad network called the Eggnetwork, that allows content owners to bundle ads in their videos. With such a large number of videos being served this was just a logical next step. More than 65 million users use videoegg´s tools on a daily basis. VideoEgg has partnered with 65 social communities and is serving 20 million streams on these sites each day. It is generating 15 million unique viewers each month with 147,225 videos being uploaded every week.

VideoEgg is yet another winning pick from angel investor Josh Kopelman (co-founder of Half.com), other investors include August Capital and Maveron. VideoEgg was founded in 2005 by Yale classmates David Lerman, Matt Sanchez and Kevin Sladek and is based in San-Francisco.