Fliqz, a Berkeley, Calif. video sharing website, has raised $2.5 million in Series B funding from Mohr Davidow Ventures, according to a regulatory filing cited by PE Week. We wrote about the company here, and said at the time we had a hard time believing there is yet another video sharing site launching. We have yet to fully appreciate what this company is offering. We will try to revisit sometime. For it to have invested, venture firm Mohr Davidow Ventures must have seen some potential.

Update: We’ve since followed up with Benjamin Wayne, chief executive, and Jon Feiber, of Mohr Davidow, and have more understanding about where they are headed.

The company lets Web sites upload video into a player on their sites, and lets them do so without downloading any software (as people do using Fliqz’s main competitor, Videoegg).

Wayne says 340 sites are using Fliqz, and that it delivers 20 to 30 million videos each month. Its traffic about a fourth that of Videoegg, which Wayne says isn’t bad considering Videoegg has a year’s head-start on Fliqz. Also, much of Videogg’s traffic comes from that company’s partnership with AOL. Also, he’s letting his customers tailor the look and feel of their video players (whereas Videoegg does not)

He said Fliqz is undercutting the bigger players offering white-label services to use video on their site, such as Brightcove, which he says typically charge $18,000 to $20,000 to serve large publishers.

He is making some money from licensing the technology, but is not profitable. Serving 1,000 to 2,000 sites will bring Fliqz to “critical mass,” he said.