Gaia Online
said Wednesday that it has received an undisclosed investment from Time Warner Inc. The virtual world startup had previously
raised $20 million from Benchmark Capital, Redpoint Ventures and DAG Ventures, while
another investor is Sony Corp. (Gaia has licensing agreements with Sony Pictures Entertainment and Warner Bros. to run the studios' movies in its virtual cinemas). Formed in 2003 and led by former Benchmark entrepreneur in residence Craig Sherman, Gaia Online says it draws nearly 2 million unique visitors per month.
"This investment is further validation for the original vision of the
Gaia Online founders, who simply set out to create a fun and engaging
place for teens to express themselves online," Sherman said in a statement. "We've been able to develop a compelling user experience
that keeps teens coming back, but there is no shortage of things for us
to work on. In the coming months we will continue to invest in the
community by adding new features and functionality that our users have
been asking for."
From October 2006 to October 2007, venture capital firms, technology companies, and media and entertainment players invested more than $1 billion in virtual world companies, according to
Virtual Worlds Management. Notable VC investors in the sector also include Charles River Ventures, Intel Capital and Rustic Canyon Ventures, while media competitors include Walt Disney Co., which
bought Club Penguin last year for $700 millon; CBS; and GE/NBC Universal's Peacock Equity Fund. (Rustic Canyon Ventures is an investor in The Deal LLC.)
- Alain Sherter
See Jan. 9 press release from Gaia OnlineSee August 2007 story from TheDeal.comFor more see
Virtual Worlds News and
paidContent.org
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