Veoh raises $26M

Veoh may no longer host popular adult videos, but that hasn’t stopped investors from backing up the Brink’s truck. As PE Week went to press late last week, we learned that the San Diego-based company recently raised $26 million in Series C funding, which gives it more venture capital than any other online video-sharing site has ever raised (including YouTube, before it was swallowed by b.

Goldman Sachs led the round, with Pete Perrone joining the board. Existing shareholders Spark Capital and Shelter Capital Partners also returned, and it’s likely that board member Michael Eisner also pumped in a bit more cash through his Torante investment vehicle. Ditto for Time Warner Investments, though it does not have a board member.

Veoh is making up ground in the competitive video hosting landscape that includes powerhouse YouTube as well as MetaCafe, DailyMotion and Revver.

One nagging problem could be continuing resentment over Veoh’s past proclivity for running copyrighted material, although it ended that practice nearly a year ago (thus deleting most of its racy content).