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YuMe, a Redwood City, California startup that makes video advertising technology, announced today that it has inked a $25 million fourth round of funding led by Menlo Ventures.

Shawn Carolan from Menlo has joined YuMe’s board of directors. Existing investors Accel Partners, BV Capital, DAG Ventures and Khosla Ventures also participated in the round.

YuMe makes the ACE online video ad management platform. They recently added a feature called Triple Play that inserts a call to action for viewers at the end of a video ad.

MSN, MSNBC, IDG Entertainment and Glam Media are among YuMe customers. ACE serves ads into video streams. YuMe claims to serve an average of 30 million ads per day.

The company claims to be profitable. “This funding will help facilitate new technology offerings and additional expansion,” Carolan said in a press release.

Video advertising is one of the hottest market sectors for startups. Brightroll founder Tod Sacerdoti told us recently that video is the end goal for most advertisers. Everywhere a video ad can be served, he said, you’ll see one soon.

YuMe has 40 employees in Redwood City, Calif., and another 40 in India. The company previously raised $21 million in three rounds, most recently a $5M investment in September 2009.


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