Mobile phones and cheap pocket cameras like the Flip range have made it easier than ever to capture our lives on video, and yet editing those fun moments with family and friends into something that you’re happy to share is often too much hassle to bother with.

Aiming to solve this problem with a one-click solution is new Israeli startup Magisto, presenting today at the Techonomy conference in Tel Aviv. The service works like this: You upload a clip to the website and the company’s technology analyses the footage to automatically find the ‘best bits’. Then it’s just a case of adding some music to act as a soundtrack and the result is a clip that you’ll want to show off.

Magisto’s video analysis technology is the key thing here. It’s designed to detect interesting behaviour, taking into account the behaviour of the camera operator in addition to the action itself. The algorithm picks out the key parts of the clip and then stabilises it, removes visual ‘noise’ and adds video effects to produced a polished result. The finished clip can then be shared via Twitter, Facebook or email.

Screen shot 2011 04 04 at 17.41.11 220x120 Magisto magically improves home movies with a click [100 Invites]Coming from a computer video background, the company’s founders see the current video sharing market as very much the thin end of a wedge that could include a vast number of home movies and personal clips that people would share if only it was easy to transform them into something they were happy with.

Currently in closed alpha, plans for the future include a mobile solution. Although it’s set to launch as a free service, Magisto intends to follow a freemium model with additional paid features to be added in future.

If you’d like to try Magisto, the company has set up invites for the first 100 The Next Web readers to sign up here. Be quick, they’ll go fast!

Here’s an example of a completed Magisto video:

And, for comparison, here’s what it looked like before being processed: