UK online DVD rental company Video Island has secured asecond round of investment funding worth $10.7m (£6m) led by Cazenove PrivateEquity.

Initial investors Benchmark Capital and Index Ventures alsoparticipated in the second funding round.

HilaryMeyrick, Investment Director at Cazenove Private Equity will join the VideoIsland board of directors.

Video Island is currently working in partnership withcompanies such as supermarket Tesco, electronics retailer Comet, website MSN,children's store Toys R Us and the Postmaster network to deliver its services.The deal sees the companies use Video Island library and services to delivertheir own branded online DVD rental service.

Video Island, which has a library of 17,000 titles, launchedlast year and is backed by companies including film producer and distributorRedbus.

Tod Bensen, chief executive of Cazenove Private Equitycommented, "When evaluating opportunities in this space, it was immediatelyclear to us that Video Island was the company best placed to take advantage ofthe explosive growth in online DVD rental. The combination of its uniquepartnership strategy, commitment to customer service and heavyweight managementteam is unrivalled in the sector."

Saul Klein, co-founder and CEO added, "This new round offunding is a clear testament to the success of our strategy in an excitingmarket place. The online DVD rental business requires heavy investment inlogistics and stock to be able to offer the customer a high level service suchas day one releases."