Virtual Worlds Forum

Cisco's Virtual Worlds Blog has taken a look at the influx of venture capital into virtual worlds companies, analysing 25 deals with a cumulative value of $1.26 billion (although, as they admit, much of that comes from two acquisitions: Disney/Club Penguin, and Intel/Havok). However, writer Christian Renaud has made some interesting points about what's being done with the rest of this investment, and what it means for the future. First, they suggest that there've been a lot of virtual world startups being funded by friends, family and angel investors in their early days, although some of those haven't been able to turn that into a commercial product. Others are seeking their first funding from VC firms, while Renaud also points out that a number of companies have shifted strategy away from recreational or training simulations towards consumer virtual worlds. Other trends noted include the investments in firms like Electric Sheep and Millions Of Us by CBS and Omnicom respectively, as well as the plethora of deals involving in-world or in-game advertising companies like Massive, IGA and Double Fusion. It's a neat analysis of where the industry's at, and one that also predicts an intriguing 2008, judging by the number of companies seemingly almost at the stage of launching their new products. (via Cisco Virtual Worlds Blog)