Like most video conferencing vendors, Vidyo is gunning for Cisco’s position as top dog in the market. And with the $25 million they recently earned in their Series C funding round, there’s a possibility they’ll be serious competition a lot sooner than we think.

The funds all came from existing investors, like Four Rivers Group, Rho Ventures, Sevin Rosen Funds, and Menlo Ventures, and brings Vidyo’s total funding to $63 million since the company’s founding five years ago. Vidyo does facilitate the video conferencing aspect of Google Chat, and the company did announce a high-end telepresence system back in January, but raising $25 million in a down economy is quite a feat. More than anything, such a sum indicates how much faith investors have in Vidyo’s ability to compete with bigger vendors on multiple levels.

To recap a little on Vidyo’s recent accomplishments, in November they announced VidyoRoom HD-220, a telepresence solution that, all told, from endpoint to HD cameras to screens and audio, totals from $25,000-$30,000. And even though Vidyo telepresence is about a tenth the cost of a similar solution from Cisco, the product is no less mature, and has been pretty well reviewed.

More recently, Vidyo introduced a service to connect telephones (both landlines and mobiles) to Vidyo conference—even if the mobile users don’t have a computer or broadband connection. The service is called VidyoVoice, and beginning this month, it will be available for a $600 annual subscription.

To bolster their model of selling internet-based video conferencing solutions for cheap, Vidyo will be spending their funding aggressively broadening sales and marketing efforts. Watch out, Cisco.