Teen Hangout Gaia Online Gets $11M in Venture Capital
Date : 14 Jul 2008 Category : Technology
NewsFactor Network"Social networks and virtual worlds are constantly evolving as users become more involved and embedded, and at Gaia Online we are focused on bringing 'Gaians' experiences they will not get anywhere else," said Gaia Online Chief Executive Craig Sherman. "With this capital, we are excited to continue to deliver on this mission, while growing and developing new site elements to support the rapidly increasing interest in Gaia Online."
Attractive Demographics
Gaia's announcement is the latest evidence that investors are betting big on virtual worlds. Venture-capital and media firms shelled out more than $345 million to 39 virtual worlds-related companies through the first six months of 2008, according to Virtual Worlds Management.
Investors think Gaia's growing audience of teenage users will attract companies looking for ad branding and virtual marketing opportunities. According to research firm eMarketer, 53 percent of the 34.3 million child and teen Internet users in the U.S. will be participating in virtual worlds on at least a monthly basis by 2011.
"Gaia Online is one of the most exciting companies that we have seen in the online social-community space," said IVP partner Norm Fogelsong. "We feel that Gaia Online is poised for explosive growth."
The online community has already provided MTV, Nike, Paramount Pictures, Sony, Toyota, Warner Bros, and Xbox with new ways to reach teens and young adults. Gaia Online has just announced a new partnership with Virtual Greats, which holds the multiplatform distribution rights for virtual goods associated with pop-culture icons such as Elvis Presley, Justin Timberlake, Paris Hilton, and Snoop Dogg.
"We're always looking for ways to create a deeper, more relevant engagement for our very active community," Sherman...