Two podcasting startups have won venture capital funding, a sign that both the promise and the hype is building for a grassroots broadcasting phenomenon that started just about a year ago.

Podshow, led by former MTV host Adam Curry, who helped invent podcasting in July 2004, received $8.85 million in funding from Kleiner Perkins and Sequoia Capital, Private Equity Week reported Wednesday. In another sign of podcasting’s growing stature, eminent Kleiner VCs John Doerr and Ray Lane are joining the company’s board, the publication said.

Miami-based Podshow is a project of Mr. Curry and Ron Bloom’s Boku Communications.

The second company to announce funding Wednesday was San Francisco-based Odeo, led by repeat entrepreneur Evan Williams, who created the Blogger service which is now owned by Google. Charles River Ventures led the round; the sum was not disclosed. The round also included Amicus Ventures, and individuals including Mitch Kapor, Joe Kraus, Tim O’Reilly, Ron Conway, and HotorNot’s James Hong.

Google

Both companies make tools for the creation, distribution, and discovery of podcasts, which are audio files delivered by subscription to RSS feeds.

The impressive pedigree of the investors in the two companies is turning a lot of heads. Kleiner Perkins and Sequoia famously teamed up on Google investment.

Although Google actually came about after the rise of search in the mid-1990s, Odeo investor Joe Kraus, who co-founded search portal Excite, said he sees another parallel in Wednesday’s funding announcements.

“This reminds me of the early days of search,” he said. “One company does not a category make. But multiple companies—that’s a category.”

Whereas podcasting’s potential for enabling small-time DJs and commentators has been closely tied to the grassroots media movement, the idea of place-shifting audio has recently entered the mainstream.

Millions have subscribed to podcasts since Apple Computer’s iTunes started offering support in late June. Many media outlets, large companies, a NASA astronaut, and even U.S. President George W. Bush have ventured into podcasting this summer.

Apple

While podcasts now serve the mainstream as well as rapidly multiplying niche audiences, it’s still not clear that there’s any money to be made. While Google’s AdSense has been one of the only sources of income for blogging, text ads don’t transfer to audio all that easily.

However, the Podshow investment team’s reputation for explosive growth and lucrative exits is certainly a financial vote of confidence.

“It’s less clear to me on the syndication side, but certainly the folks that figure out the advertising will make some money. I’m bullish on podcasting up and down the value chain.”