A whopping $40 Million has been raised in new funding by the popular Chinese video websites Youku. com, which is also the country's largest site of the segment, and the development is being as a sign pointing to the confidence that the medium will continue to grow throughout China, as firms move further away from "user-generated videos" for which they were once famous.

Chief Executive of Youku, Victor Koo, has shared that the new funds collected would be invested by the site in expanding its offering of professional, licensed videos and content that has been tailored and produced exclusively for the internet. Also, the company will invest more toward expansion in mobile video.

The latest funds have been contributed by existing investors, including giants such as Chengwei Ventures LLC, Maverick Capital and Brookside Capital. In all, as confirmed by the company, Youku has managed to raise $110 Million worth of private-equity funds and an additional $10 Million from debt.

"Online videos in China are based more on professional, long-form video than in the U. S. due to the relative brief history of user-generated, short-form video here", Mr. Koo said while pointing out the major difference between Youku. com and Google's YouTube. com.

The firm is now looking to take up another round of fund raising with the aim to bag another $40 Million.