Virtual Worlds  Management, the leading media company tracking the virtual
worlds industry,  has announced findings from a comprehensive study of
accountable transactions  that venture capital, technology and media firms have
invested more than $1  billion dollars in 35 virtual worlds companies in the
past 12 months, from  October 2006 to October 2007.

The announcement comes just prior to the Virtual  Worlds Conference and Expo
taking place October 10-11, 2007, at the San Jose  Convention Center in San
Jose, California. The investment numbers and the  future of the industry will be
discussed in depth at the conference.
 
Of the $1 billion,
$196.8 Million was invested in  33 companies. Significant investors in the space
include Redpoint Ventures,  Charles River Ventures, Intel, and Rustic Canyon
Partners. Media companies are  also making sizable investments, including
Disney, CBS, Time Warner, and  GE/NBC Universal’s Peacock Equity Fund. The
remaining $810 million went to two  acquisitions: Walt DisneyÕs $700 million
acquisition of Club Penguin and  IntelÕs $110 million acquisition of 3D virtual
worlds graphics technology  company Havok.
 
“Investors are not
just venture capital firms, but  also include major technology, media and
entertainment companies,” said  Christopher Sherman, Executive Director of
Virtual Worlds Management. “The  amount of money invested in this period of time
is staggering. We donÕt see  any slowing in the market adoption of virtual
worlds technologies and expect  investment in the space to continue. In fact the
market is growing  significantly, with the rate of adoption of virtual worlds
increasing as the  technology matures and has more to offer both consumers and
enterprise  customers.”
 
Investment spanned  the entire
virtual worlds value chain, including technology platform  companies, virtual
worlds developers, service providers and tools providers.  Business models of
the companies raising capital vary, ranging from  advertising and subscriptions
to virtual item sales, to enterprise software  licensing, hosting and
services.

Via the San Jose Mercury News