Who says raising money is hard these days? PlaySpan makes it look like child’s play. The startup, which was literally founded by a 5th grader, just raised $16.8 million in a series B round from existing investors Easton Capital Group, Menlo Ventures, Novel TMT Ventures, and STIC.
PlaySpan was founded two years ago by Arjun Mehta, then in the 5th grade, and his father Karl Mehta, who is the CEO. It is a marketplace and micro-transaction payment system for virtual goods in more than 200 different video games. So far this year, more than $50 million worth of transactions have gone through PlaySpan, and the company has reaped revenues in the millions of dollars.
The company also sells the Ultimate Game Card through 20,000 retailers, including 7-Eleven, Wal-Mart, Blockbuster, and Rite-Aid. With the stored-value card, players can purchase virtual goods in hundreds more video games, including Everquest, Eve Online, and all EA Games.