feedburner.jpgChicago-based Feedburner, which helps publishers place ads within their RSS feeds, has just raised a $7 million second round of financing, after nabbing $1 million last year.

No one in the space really offers all the services that Feedburner does. But there are at least two local companies trying to carve out a piece of the pie in this market of burning ads within RSS feeds: Pheedo in Walnut Creek and Moreover Technologies in San Francisco.

Mobius Venture Capital led the Feedburner round, joined by new investor Sutter Hill Ventures and existing investors Portage Venture Partners and Draper Fisher Jurvetson. So how does the $7 million compare to the bank accounts of the other players? Well, Moreover raised a whopping $21 million in June 2000, but those were easier times, and besides Moreover does a lot of other stuff too. More interestingly, Pheedo raised an undisclosed amount of seed funding last year from Walnut Creek’s Fastlane Ventures, but has been operating without a CEO — a sign of pending changes?

Jeff has more.