Virtual Goods News

PlaySpan, which provides publisher-sponsored virtual goods marketplaces, announced today that it had raised $16.8 million in a Series B round from Easton Capital Group, Menlo Ventures, Novel TMT Ventures, STIC and other undisclosed investors. The money will be used to expand into Europe and Asia and to grow PlaySpan's  global publisher and user-base, which, according to the company, already reaches 100 million online gamers worldwide across 200 online games and virtual worlds. 

The funding brings PlaySpan's total to $24 million, including $6.5 million raised just over a year ago. This past summer, PlaySpan added payment technologies to its stable with an acquisition of PayByCash.

The microtransaction business has been especially busy of late, with publishers looking for additional revenue streams beyond the supposedly wavering advertising market and subscriptions, which some worry might be less attractive in a declining economy. Live Gamer, which, coincidentally, raised $24 million in its first round last December, recently announced partnerships to integrate its platform with Icarus as well as Acclaim Games, GoPets and InstantAction.com.

PlaySpan is seeing similar motivations.

"Online games publishers and social media application developers are looking for new sources of revenue beyond traditional advertising and subscriptions.  We are enabling a new business model in the form of mi