With the explosion of video sites, the search giants Google and Yahoo! are poised take advantage of one of the latest Internet trends. Both companies have positioned themselves with their own video sites: YouTube and Yahoo! Video. but even with the sites under their umbrellas there is still a big issue they are both wrestling with: Video Search. The problem is most videos are hidden behind elements using JavaScript, Flash or media player plug-ins. This keeps them hidden from traditional search engines. Another problem is that videos are often poorly tagged, making it even harder to find them.

While the big guys struggle with adapting their algorithms to understand and find video content, the newcomer CastTV is building up quite a bit of steam. Yesterday they released a statement that they have secured $3.2 million in Series A financing with Draper Fisher Juvetson leading the way. CastTV is touting that “CastTV’s superior technology and team will allow it to emerge as a leader in video search and discovery,” according to Packard, the managing director of Draper Fisher Jurvetson. “CastTV will become the first place users go to find video on the Internet.”

This could quite possible happen, since they have started from scratch to develop new technology which better adapts the challenges with search for video. The fact that they don’t have to try in and fit a solution into an already mature system and the concentration on one type of search, gives them an edge. If they can create enough traction and establish a foothold in the Video Search market they have chance to beat the big two too the punch. In the long run it will be a continuing struggle to stay ahead of Yahoo! and Google’s resources and capital. However, with backing from internet veterans like Draper Fisher Jurvetson, CastTV should be able to make good run.