YouTube, the video sharing service, raised $8 million, bringing the total amount it has raised so far to $11.5 million. The backer is Sequoia Capital, the VC that originally financed the startup in November.
So, even as the company is just beginning to try to shed its copyright problems and transition to becoming an entertainment partner for big media companies, it's bringing in dough. It's had some recent luck signing up established folks, including E! and Comcast's G4 cable network.
The next step is actually trying to make money, and it plans to start doing contextual advertising by the middle of the year. But then, how YouTube resolves copyright issues becomes even more important. Though it and other video publishers are protected from copyright liability by a 1998 law as long as they comply with requests to remove illegally posted videos, the story could change once YouTube starts making money.