Once upon a time peer to peer video application Babelgum had its sights set firmly on Joost. Both applications allow users to watch internet video without a web browser and with an attractive full screen interface. But while Joost has been steadily picking up major studio and network content partners, Babelgum has focused largely on independent film.

And it turns out that may have been a smart move, as Joost hasn't really lived up to its hype over the past year, and major content producers are turning to other services like Hulu to distribute their material.

Now Babelgum is going all out on the indie film front, and creating a $15 million fund to invest in independent shorts. Any videos funded by Babelgum will be distributed solely through the online video application, although Babelgum may consider selling DVDs or pursuing TV distribution deals.

[via paidContent]