Virtual Worlds Draw Big Investment In First Quarter
Venture capital firms and angel investors around the globe have pumped more than $184 million into virtual worlds-related companies during the first quarter of 2008, according to a new report from Virtual Worlds Management.
"It's worth noting that at the younger level, the lines between virtual worlds, games, and social networking blur heavily," said Joey Seiler, editor of VirtualWorldsNews.com. "If nothing else, it highlights the trend of users merging their activities into one immersive space."
The big winner was 9You, a China-based virtual world and casual games development firm that snagged a $100 million investment from Temasek Holdings. In the U.S., however, the companies that received investments varied from enterprise-facing virtual events hosting firms, to adult and kid-friendly entertainment properties.
For example, Menlo Park, Calif.-based virtual events vendor Unisfair scored a $10 million investment from Norwest Capital Partners and Sequoia Capital. Past event hosts have included IBM and Rogers Publishing. Meanwhile, Waltham, Mass.-based EveryScape closed a $7 million funding round led by Dace Ventures. The company crafts 3D models of metropolitan hubs like New York, Miami and San Francisco, and allows business owners to customize their virtual storefront, as well as place dynamic ads within the grid.
On the entertainment side, Mill Park, Calif.-based Fluid Entertainment secured $3.2 million in financing from Trinity Ventures to help build out its vision of an eco-friendly virtual world for kids. And Pasadena, Calif.-based Numedeon, parent company of the educational tween hub Whyville, snagged $1 million from BankInter's Venture Capitol Group (along with angel investors).
Overall, some $16 million was invested in youth-oriented virtual worlds globally, leading Virtual Worlds Management's analysts to conclude that the youth market, in particular, is heating up. Currently, there are 60 kid, tween and teen-facing worlds live, with another 53 in development, testing or conceptualization phases.
Recent Online Media Daily Articles
-
Acquisitions Flourish, Google To Seek Equity Firm To Further Deals June 19, 1:24 p.m.
Google is considering alliances with private-equity firms to help structure acquisition deals, but the tech company ... -
Millennial Expands Video Ad Options June 19, 11:44 a.m.
Mobile ad network Millennial Media is stepping up its video ad offerings with the launch of ... -
CIMM Issues Request For Data, Cross-Platform Metrics June 19, 9:29 a.m.
The Coalition for Innovative Media Measurement (CIMM) said it has issued a request for proposals involving ... -
Heads Or Tails: Facebook Grows A Long One, Surpasses 1 Million Advertisers June 19, 7:48 a.m.
Facebook has reached an important ad industry milestone, becoming one of the few mega platforms to ... -
Consumer Action: Most Web Users Want Control Over Tracking June 18, 8:20 p.m.
Most Web users have expectations about privacy that appear to be at odds with current practices ... -
Affiliate Channels Attract Global Buying, Tailored Marketing Programs June 18, 5:54 p.m.
The Internet continues to make the world smaller for affiliate marketers, but there are physical challenges ... -
Motorola Hires Digitas For Global Media Account June 18, 5:43 p.m.
Google-owned Motorola has appointed Publicis Groupe’s Digitas to handle global media duties, according to sources. Those ... -
Microsoft Rolls Out Ad Pano, Mobile Ad Format June 18, 3:03 p.m.
With the help of the broader ad industry, Microsoft this week is rolling out a mobile ... -
Kiip Debuts Self-Serve Option For Advertisers June 18, 2:23 p.m.
Mobile rewards network Kiip has added a self-serve option for advertisers aimed at attracting more small- and medium-sized ... -
Mindshare Taps Elkins As Managing Director, Digital, West Coast June 18, 1:51 p.m.
Mindshare, part of WPP's GroupM, has tapped digital marketing veteran Amy Elkins to be managing director, ...
Be the first to comment on "Virtual Worlds Draw Big Investment In First Quarter"
Leave a Comment