Modu is a tiny, credit card-sized, powerful mobile phone. Slip the modu into one of many very well-designed “jackets” to give it a new look and new functionality. Modu was formed in 2007, backed by $20 million in VC funding; it looks like they’ll be closing on another $100 million within the next few weeks based on an initial valuation of $150 million for the company.

Check out the YouTube video.

These modular components remind me of the concept behind Buglabs, but whereas Buglabs had more geek appeal, with open source hardware and software, modu has much more chic appeal. These things look slick.When is a phone not a phone? When it has “mates,” which morph the modu into various consumer electronic devices. All modu jackets are universally interchangeable, allowing you to swap modu jackets at any time, and according to the web site, with anyone. It also sounds as if some of these modu’s will be artist-branded and come pre-loaded with applications and music. I couldn’t find any price estimates to speak of, but product is supposed to ship at the end of 2008. And I want one. . . or ten.

Check out the Modu blog for updates.