An anonymous reader writes "YouTube, the self-described "Flickr of video" has now received $3.5M in funding from Sequoia Capital, the same VC firm that funded Yahoo!, Google, and PayPal. Competitors of YouTube include Revver, launched just last month and founded by Ian Clarke of The Freenet Project fame. As of now, both services are free. With the online video space heating up in recent months, the question is who will discover the best business model." YouTube was first mentioned on Slashdot shortly after its launch three months ago.