Brilliant Digital snags funding

Brilliant Digital Entertainment, known in Internet circles for its deal to bundle software with file-swapping service Kazaa, said it has raised $450,000 through the sale of common stock and warrants. The Los Angeles-based company said the latest funds add to a private placement financing transaction last month in which the company tapped $800,000. The company said the funds will allow Brilliant Digital to continue to pursue sales of its ad-serving technology it calls Brilliant Banner and also to contribute to development of a secure peer-to-peer network called Altnet, software that is bundled alongside Kazaa.

A developer of 3D-rich media advertising, Brilliant Digital licenses its Brilliant Banner to the Web-based advertising industry. The company also sells another technology, B3D Studio, which delivers interactive, streaming of 3D graphics over the Web.