Free online video chat service TokBox has raised a $10 million Series B round of financing led by Bain Capital. Sequoia Capital, which provided $4 million for the startup’s Series A funding, also participated in this second round.

TokBox has worked to expand its reach over the past year, developing its video chat service for web-based IM platform Meebo as well as Facebook, and the company released an Adobe AIR version of its service.

TokBox isn’t alone in this space, IMO.IM is another browser-based video-enabled chat service (founded by ex-Googlers) and Skype offers video calling as well. No one, however, has solved the biggest problem with video chat: webcam placement. Until someone builds a camera behind the monitor, video conversations will never feature eye contact, as everyone’s looking down (and away from the camera) to see the person they’re chatting with.