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Hardware - Monday, May 28, 2007

Trend Watch: Game Startups Landing Seed Funding

Investments in games is picking up thanks to a couple of new trends in monetizing games. The ad supported game model has been proven, in particular for casual gaming. Also, Linden Labs proved the model of giving away games and making money through sales taxes in the virtual economies that they have built.

It does seem, however, that much of the funding comes via angels or happens outside the US. VCs in the US, it seems are still not clamoring to get back into the games business. We missed a few recent game fundings as they were outside the US are were done by angels. Here are some briefs...


RealNetworks is joining with several media execs to fund Torance, CA's OGplanet, which imports Asian online videogames to the US market.

Investors include former Disney Online President and RealNetworks' exec Richard Wolpert; Peter Levin, CEO of digital media firm BellRock Media; Mark Surfas, founder of videogame review site GameSpy; and former RealNetworks exec Andrew Wright. Sangchul Park, formerly an exec with Korea's LG Corp, is heading up OGPlanet, which has already taken over operations for Albatross 18, a PC-based multiplayer online game that's has been big in Asia.

Like Second Life OGPlanet's games are free. It makes a living via revenue through the sale of virtual products, as well as advertising. OGPlanet recently partnered with Wild Tangent to power its game advertising.

View - OGPlanet site

Copenhagen, DenmarkwatAgame raised an undisclosed amount of seed funding from angels SEED Capital, and Vaekstfonden. Founded in 2004, WatAgame develops mobile and web games made just for girls.

WatAgame's runs GoSuperModel which has been localized into at least 6 languages. GoSupermodel is ad supported and targets girls aged 10-16.

View - WatAgame and GoSuperModel.

Galway, Ireland's Nephin Games raised $1M from angels. The company develops mobile phone games made to promote films, TV shows, and consumer goods.

A game made by Nephin for the World Kickboxing League

View - site

San Rafael, CA-based Telltale Games, which is best know for its PC adventure game Sam and Max, has raised $1.4M to date The latest funding comes in the form of a Convertible Bridge Note, under the financial guidance of Avance Ventures and included a significant contribution from the Keiretsu Forum.

In addition to Sam & Max. The company is also tapping characters and storylines from the TV show CSI with CSI: 3 Dimensions of Murder, which was published by Ubisoft. Telltale also got int casual games market with the launch of its online arcade.

View - site

LiveHive Systems out of Waterloo, Ontario has raised $ 1.8M from Tech Capital Partners. The company operates in gaming but from an interactive TV angle. Its sells its games to TV broadcasters, fantasy sports sites, and web portals for user to play fantasy sports on.

View - site

Quazal out of Montreal develops multiplayer technologies that it sells to video game makers. Quazal's tech includes real-time data propagation and synchronized game inputs and it has what is known as a lobby server which hosts game communities on all gaming platforms. Founded in 1998, Qazal raised an undisclosed amount of funding from Collar Capital; FondAction CSN; La Caisse de Dépôt et de Placement du Québec and Viavar Capital.

View - site