Casual and social gaming company Outspark has picked up $8.3 million in a third round of funding. New investor Syncom Venture Partners led the round, with participation from previous backers SBI Investment and Mille Plateaux. The S.F.-based startup has raised close to $20 million in financing since it launched in 2007, including an $11 million round led by Chinese internet portal Tencent last year.
With 4.7 million registered users worldwide, Outspark says it generates roughly $50 in revenue per user each month through its “freemium” model: people can play basic games on the site for free, upgrade to premium versions using its virtual currency SparkCash, and use that cash to buy virtual gifts and profile badges.
Outspark first set up a games portal, complete with five massively-multiplayer online (MMO) games, here in the U.S.; it has since expanded to Europe, and will use the funding for strategic investments and acquisitions. Release.
By Tameka Kee