With today’s fast paced lifestyle, everyone seems to be running out of time; people are opting to watching videos on their mobile devices rather than watching from their own homes.  Major mobile phone companies are revving up to come up with phones that can accommodate this mobile video trend, addressing the new needs of consumers.

Today, Animoto announced the $25M financing deal with Spectrum Equity Investors that will allow them to further develop  their online video creating service.  Last year, Animoto had already launched a faster version of their service that enables consumer to use its HD capabilities in creating videos and sharing them.

“We’ve only just begun to realize the full potential of our original vision for the technology and product,” said Brad Jefferson, CEO and co-founder of Animoto.  “With our rapidly growing and highly engaged user base, Animoto is uniquely positioned to capitalize on the rapid convergence of photos, videos, mobile and the digital living room.  We are pleased to be partnering with Spectrum as we enter our next phase of growth.”

Managing Director for Spectrum Equity Investors, Ben Spero will join the Animoto Group of directors as part of their joint venture.

“As Animoto’s user base has expanded virally around the world and proliferated to both consumers and small businesses of all sizes across a wide variety of use cases, the company has become the clear leader in online video creation and sharing,” said Mr. Spero.  “We are extremely excited to invest in Animoto and support Brad and the management team as the company continues its explosive growth.”

With this, mobile ad network Vdopia is also on it’s toes in developing an application that enables companies or brands to put video ads on mobile browsers  that is compatible with any handheld device.  Right now, the beta version of .VDO has already enabled some advertisers like Sony Pictures and Universal Studios to let the public see what mobile video ads are all about.