Venture capital is, apparently, still available. YuMe just closed a $25 million round of funding, the proceeds of which YuMe will use to advance its Internet-based video advertising technology.

The investment round was led by new investor Menlo Ventures; previous investors Accel Partners, BV Capital, DAG Ventures and Khosla Ventures also participated. Menlo Ventures bought itself a seat on YuMe’s board of directors.

YuMe has a video ad management platform, called Ace, designed to serve in-stream ads across multiple platforms, including PC, mobile and IPTV. Previously confined to pre-roll ads, YuMe recently introduced the ability to place interactive ads elsewhere in programming. The company also claims that Ace recently became the first advertising technology to offer dynamic ad insertion into live video.

YuMe’s customer roster includes MSN, MSNBC Digital Network, IDG Entertainment and Glam Media. YuMe also partnered with AutoTrader.com Access to let automotive marketers reach consumers who are currently shopping for a new car.

YuMe said it has been facilitating exponential video advertising sales growth, serving an average of 30 million in-stream video ads per day in December 2009. The company said it is now profitable.

“This new funding allows us to be even more aggressive in expanding the footprint of our Ace video ad platform and maintaining our leadership position in video ad delivery across high quality in-stream content,” said Michael Mathieu, CEO of YuMe.