Mark Sigal's company, vSocial, got off to a shaky start. It was launched in 2002, a time when people were fleeing the tech world. Sigal provides this assessment of vSocial's initial offering: it "failed spectacularly."

The company had a personal video subscription service, called MyPersonalVideos.com. It also required a software download. Pay money for a download service? No way.

On the second try, however, things are going much better. The service is web-based, allowing for easy upload, viewing and sharing of video clips.

But this is not the most important product for the company. Instead, it has leveraged its technology into a platform called vConnect Online Video Services. This allows other sites to create their own video channels, with the kind of YouTube features that online viewers expect. There is also the ability to monetize the content, such as through advertising network integration.

So how has Google's $1.65 billion purchase of YouTube helped vSocial?

According to Sigal:

1. "The deal instantaneously served as the 'Aha' moment where everyone got the fact that now, not tomorrow, was the time that you need an online video strategy."
2. "Qualified lead flow has literally doubled."
3. "The deal has set a market for what a very successful company in this space can be worth -- i.e., $1.65B. This frames the opportunity for investors and acquirers and also incites the greed factor for potential customers. Let's face it, no one wants to chase after small market opportunities."
4. "This put to bed the meme that online video was the next Napster."

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates DealProfiles.com.