VentureBeat

Avaak, a creator of video networking technology, received $7 million in its first round of private funding — money that will go toward putting the finishing touches on its new camera system, the Vue Personal Video Network. Even though it was initially developed for homeland security purposes, the company is now touting the Vue as a “lifestyle product” for regular consumers.

The company hasn’t revealed much about the camera, slated to launch in early 2009, except that it runs on very little power and comes with no wires attached. This portability will let Vue users instantaneously capture, view and share videos from anywhere at anytime, Avaak says. The company is aiming to sell the camera for personal, rather than commercial, use. Seed money came from the U.S. government, which uses a version of the cameras for homeland security and military purposes, namely allowing soldiers to see around blind corners by tossing or installing small durable models in obscured areas. Avaak received sizable assistance at the start of the year from the Center for Commercialization of Advanced Technology (CCAT, pronounced sea-cat), which helped the startup scout federal funds and speed up progress.

Less than a year later, the consumer market is catching on. Last month, the tiny camera landed San Diego-based Avaak a finalist spot in the Consumer Electronics Association’s i-Stage Competition. Some of the funding will be used to devise an appropriate marketing strategy. It’ll be interesting to see if they choose to capitalize on the security aspects of the product or more fun, casual uses.

The round was led by Trinity Ventures, joined by InterWest Partners and Leapfrog Ventures.