Grouper, an online video sharing firm based in Mill Valley, CA, has received $1.75 million in second round of venture funding from T-Ventures, T-Online’s investment arm. Deutsche Telekom, parent of T-Online, will help Grouper bring the service to Europe. Previous investor Duff, Ackerman, Goodrich also participated in the round. Grouper has raised $5.25 million till now.

Grouper, which has been in beta till now, has also launched a new version, after some major retooling of the service. Grouper CEO Josh Felser gave me a demo last week at the Demxpo conference told me that the service started as a private P2P media sharing service, but after user feedback, has now refocused and relaunched as an online/open service. This, of course, puts it in competition with the number of online video-sharing site.

Along with sharing, the site has added functionality to get any video for download on iPods and PSP. The company has also added some nifty video editing tools as part of the software/service…

AP: The company will now offer unlimited uploads of video clips to the service. Videos lasting longer than three minutes are accessible to others as downloads. Users can also choose to have their video viewable by only a private network of friends.