I see that Scalado, the Swedish imaging specialist - as in camera phone image - has raised c $ 2 million.

Their main product currently seems to be PhotoTwister that

lets you make cool & twisted photos in a flash. Choose between a wide range of different warp filters, all with funny and hip effects. Give your dad a big belly, your sister enormous ears or your favorite pet a gigantic nose. Additionally you can add paint features to your photos that will transform your friend into a cartoon. Scalado PhotoTwister is very easy to use and shows your twisted warp photo in real-time.

But they have some more serious stuff too.

As you’ll know I think there’s huge opportunities in camera phone imaging and I’d say that they’re a much better bet than all the money that’s been piling into Java Games at the moment.