Seraphim, the £30m Enterprise Capital Fund, is co-investing alongside existing investors that include London Seed Capital, South East Growth Fund and Oxford Technology 4 VCT.
MirriAd's technology offers marketers a promotional tool by digitally inserting brand images into video content after filming has been completed, making them look like they were always there.
Products, logos, posters or bill boards can be placed seamlessly into video streams in post-production in all kinds of video content from cinema, TV, DVD, mobile and online platforms.
MirriAd aims to enable advertisers to more effectively target specific audiences by changing where brands and products are placed in a video clip, according to who and where in the world it is being watched.
Cinema releases and TV shows can also use MirriAd to regionalise their advertising content, while film and music video back catalogues can be monetised by MirriAd retrospectively inserting new branded products and ads into the content.
Mark Boggett, investment director at Seraphim Capital, said: "MirriAd stands at the forefront of a new form of advertising that looks set to become a global phenomenon. Supporting the world's leading pioneer of embedded advertising and virtual product placement represents a terrific opportunity for Seraphim."
MirriAd debuted its embedded advertising process in the UK for the first time in August in a competition to promote the release of Universal Pictures' 'The Bourne Ultimatum'.