Online video advertising network Tremor Media Inc. announced the closing of an $11 million Series B round on Monday that will allow the company to expand into Europe.

Insiders Canaan Partners and Masthead Venture Partners led the round, which brought total funding for the company to $19.4 million. The two venture firms first backed Tremor with a $8.64 million Series A in September 2006.

The new funding came at a "significant increase in valuation" to the first round, according to CEO Jason Glickman. While he declined to say how fast Tremor's revenues are growing, Glickman did say that the company is not yet profitable and expects to remain in growth mode.

New York-based Tremor Media's video advertising network allows advertisers to buy in-banner and in-stream video ads on more than 800 top-tier publisher sites. The company's major advertising clients are large branded advertisers that typically run ads on television, and often run their TV spots on the Web. Tremor also provides publishers with a suite of products and services to monetize streaming video.

The company expects the video advertising market to grow to more than $3 billion by 2010.

"[Last year] was a significant revenue generator as far as people putting budgets in online video, making that a big part of what they do on a month-over-month basis," says Glickman. "It's no longer just test budgets--we're seeing much larger budgets that span several quarters or even a year."

The round's proceeds will go primarily toward developing new tools for the company's clients and for the company's expansion across the Atlantic.

"The real use of funds is for expansion of our current ad-products, building out new tools for publishers and formats for advertisers," said Glickman. Tremor is beta-testing a number of new tools for use by its publishers that it plans to introduce in the first half of 2008. The company says these new tools are designed to give Tremor's publishers "increased flexibility and enhanced revenue opportunities" as they try to monetize their video inventory.

Additionally, "international expansion is also top of mind," said Glickman. "We're looking to move to Europe as our first hop and make that a big part of our push in 2008." He said that the company has a small presence in Europe now, with some of Tremor's advertising dollars coming from international sources; the company plans to fully capitalize these links this year.

McCarter & English LLP was counsel to the company in the financing while the investors looked to Morse, Barnes-Brown & Pendleton PC.