Are you tubing yet?

Youtube.com -- one of the hottest Web 2.0 companies announced earlier this month that Sequoia (a premier Bay Area VC) was funding their expansion by investing $8 million in a Series B investment.

Note, this is in addition to the $3.5 million Series A investment for YouTube.

Again, there are few details on how the money will be used, or the implied valuation. However, I have a few conjectures:

1) They will spend tons of money on building an infrastructure to facilitate serving bandwidth-intensive videos.
2) Will unleash marketing campaigns to attract users to sign on and invite friends and family to do the same.
3) Will build an large sales force to attract advertisers to their site.

Will be interesting to see how this one plays out. It will be one big test of how much advertisers are willing to pay for concepts like "in-video ads" and "pre-roll/post-roll formats". YouTube will probably promote the tagging and social networking to add to the edginess of their service.

Stay tuned...

Namaste