Encoding.com is a San Francisco-based start-up that offers video encoding services in the cloud. The company has reportedly seen a 500 percent growth in monthly recurring revenues in 2010, and as the online video is gaining more and more momentum, so does Encoding.  The company announced it has raised $2 million in fresh capital from its existing investors including Metamorphic Ventures and a number of independent cloud industry execs and Angel investors.

“Current investors joining Metamorphic Ventures in the round are Patrick Condon, co-founder of Rackspace and active Angel investor; John Engates, CTO of Rackspace; and Dave Morgan, CEO of Simulmedia and founder of TACODA and Real Media.”

Encoding.com has a customer base of over 1,700 users including numerous major companies, and has gained a tremendous amount of momentum. One of the biggest factors is perhaps its good timing amidst “the broadband video gold rush,” as company president Jeff Malkin referred to this ever-profitable vertical.

A couple of weeks ago Encoding.com had yet another development, when it launched its Instant Encoding feature. This new functionality can increase the speed with which files can be transcoded by as much as 100 percent, which makes the start-up’s offering one of the most attractive ones in the market. This also encompasses some of the largest hybrid and on-premise players.

Venture capitalists have been investing quite a bit in the cloud these past, and one of the start-ups who have been benefiting from this growing interest is Big Switch Networks. The virtualization and cloud platform building startup Big Switch Networks has secured $13.75 million in a first round of financing. Four new directors joined to Big Switch, including Stanford and Mark Leslie and former chief executive of Veritas, Bill Meehan.

A bit earlier, Practice Fusion, a start-up which helps medical professional to transit into the cloud, raised $23 million in a round led by Founder’s Fund.