Introducing Viddy, The New App That Does For Videos What Instagram Does For Photos

The days of the flip video camera may have ended last week, but video sharing is about to get a lot easier with the introduction of Viddy, a new iPhone app that lets you create and share video with your mobile device. 

The service, which launched last week, lets consumers capture video footage, share it via their mobile devices, and — perhaps most importantly — apply one-click iMovie style production and audio effects to make the videos look great.

Videos shared by family, friends, and “Viddyographers” around the world appear in a Twitter-style feed. Add titles, tags and geo-location with Foursquare, share on social networks such as Facebook, Twitter and YouTube, and find and follow friends and other Viddyographers to see the latest and greatest videos.

In just a little over week, the pp has been averaging over 10,000 downloads a day.

The app is already being used around the globe — check out #viddy in the search field at Twitter, or download the App and view the Popular feed. You’ll see an incredible real-time stream of Viddys, including a guy in Japan making pulled noodles at a street stand, and a couple in Italy zipping down the road on a Vespa.

The company just completed a $1.5 million first round financing from Battery Ventures, Bessemer Ventures, Qualcomm, and angel investors including Jarl Mohn and early team members from YouTube.

Viddy is free to download from the Apple iTunes app store for iOS and supports cameras on the iPhone 3GS and 4G.