• Virtual Worlds Are So Hot Right Now: $345 Million Invested So Far This Year

    Erick Schonfeld

    Erick Schonfeld is a technology journalist and the executive producer of DEMO. He is also a partner at bMuse, a product incubator in New York City. Schonfeld is the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily... → Learn More

    Tuesday, July 8th, 2008

    I feel like today is Virtual World Day. We started off the morning covering the public beta launch of Vivaty, then Second Life and IBM announced that they bridged two virtual worlds, and Google launched its own version of virtual worlds with Lively.

    If it seems like everybody is starting their own virtual world, it is because they are. A report put out today by Virtual Worlds Management tracks $161 million put into 14 virtual-world investments during the second quarter of 2008. In the first quarter there was even more activity, with $184 million put into 23 virtual worlds and supporting technology companies. That brings the total this year alone to $345 million across 37 deals. Some notable deals (you can see the full lists by clicking on the last two links above):

    Second Quarter 2008

    Grockit——————-MMO Learning Game——-$8 million——-Integral Capital and Benchmark

    Nurien Software——–3D social networking——-$15 million——-Northern Light, Globespan, NEA

    PrimeSense————-Gestural Interface———-$20.4 million—–Led by Canaan Partners

    Realtime Worlds———-MMOG Developer———$50 million——–Maverick Capital, NEA

    Stanford Parallel —-Parallel Processing————–$6 million——-Sun Microsystems, AMD, Nvidia, IBM,
    Processing Lab for Virtual Worlds HP, and Intel

    Turbine———————-MMOG——————-$40 million————–Time Warner and GGV Capital

    First Quarter 2008

    9You———–Virtual World/Casual Games——$100 million——–Temasek Holdings

    Dizzywood —————Youth World————— $1 million——-Shelby Bonnie, Charles River Ventures

    EveryScape————— Mirror World————–$7 million——–Dace, Draper Fisher Jurvetson

    Fix8 ———————- Avatar Content————$2 million ——–SK Telecom

    Gizmoz ——————- Avatar Creation ———- $6.5 million——-DoCoMo Capital, ngi group

    iOpener ——————–Mixed Reality ————-$6 million———Triangle Venture Capital

    Sparkplay Media——Casual MMO with Games—–$4.25 million—–Redpoint, Prism Ventureworks

    Unisfair ——————–Virtual Events Platform—–$10 million——-Norwest, Sequoia Capital

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