October 3, 2007
- GMO VenturePartners
October 3, 2007
Press Release
GMO VenturePartners, Inc.
GMO Venture Partners Establishes Virtual World Investment Fund
Tokyo – October 3, 2007 – GMO Internet Group venture capital investor and business incubation company, GMO Venture Partners, last month (20/09/07) established the Virtual World Fund Investment Partnership. This fund will support the start-up and growth of virtual world technology and service ventures.
The first investment the fund will make is to underwrite the capital increase of MagSL, Inc, the leading Japanese portal site, area developer, construction, advertising and finance services company for virtual worlds like Second Life.
Virtual World Fund
The Virtual World Fund will target virtual world technology and services offering unique technology and business models that are expected to play a significant role in the virtual world field over the next ten years.
Investments will be made in the following three divisions with the Enabler segment being the focal area.
Players | Virtual World business development (advertising, recruitment, content sales, real estate development) – participants in virtual worlds |
Enablers | Promotional support, advertising agencies, operations handling and other businesses that support the development of virtual world participant businesses – virtual world participant support businesses |
Platforms | Companies like Splume and the American producer of Second Life, Linden Lab – virtual world operators |
*Our research shows that in addition to Second Life there are approximately 60 virtual world platforms in operation throughout the world.
MagSL, Inc.
MagSL, Inc. (a 7/2007 spin off from GIP Service) is one of Japan’s largest landowners inside Second Life, the Virtual World development and promotion company owns the four million square meter residential area, MagSL Tokyo and has over 500 tenants including Nippon Television, Toshiba, Suntory, HIS and Cyber Agent. The company has proven business development results inside Second Life and they have achieved good business results within a fixed community and financial scale. They formed partnerships with major advertising agencies at an early stage and have developed virtual world media at the same time as developing virtual world cities. GMO-VP has evaluated the company and believes that it will play an important role in the future of the virtual world industry. The Virtual World Fund will underwrite the capital increase by third party allocation to be executed by MagSL on October 5. As a minority shareholder we will offer business, capital policy and other support with the objective of accelerating MagSL growth.
Background to the Virtual World Fund
GMO-VP established the Blog Business Fund (approx. ￥1 billion) in 2005, this was our first fund with a specified target. To date two of the companies we have invested in are preparing to execute an IPO and the fund has performed well.
Internet users began to really start talking about Second Life in the latter half of last year. We conducted research in this field and led projects including the Second Life Fund Project and a business contest. We looked at approximately 60 virtual worlds operating around the globe, GMO-VP employed virtual world specialists and we spoke with many individuals and businesses in regard to the virtual global market. We discovered that not only Second Life, but virtual worlds in general have huge potential, and it was then we began to seriously consider establishing a dedicated fund.
The GMO Internet group has a strong hosting business and virtual worlds are likely to become a hosting business in the future so we can expect the fund to contribute to group synergy.
Development of Online Communities
Virtual World Fund Investment Business Partnership -Fund Outline
Name | Virtual World Fund Investment Business |
Term | 6 years |
Application Period | October 2007 – May 2008 *Please inquire for the second close date |
Amount | Up to ￥100 million |
Media Inquiries
GMO VenturePartners Inc.
E-mail: [email protected]
GMO Internet Inc. Group PR Team
E-mail: [email protected]
The GMO Internet Group
The GMO Internet Group is a leading force in the Internet industry offering one of the most comprehensive ranges of Internet services in Japan. We hold top domestic market shares in domain registration, web hosting and payment processing and we provide a host of other services including e-commerce solutions and Internet advertising to individual and corporate customers. Striving to redefine the industry and foster a vibrant Internet culture, the GMO Internet Group is continuously working to inspire enthusiasm in our customers and put smiles on their faces.
GMO VenturePartners Inc.
Company Name | GMO VenturePartners Inc. http://www.gmo-vp.com/ |
Address | Cerulean Tower, 26-1 Sakuragaokacho, Shibuya ku, Tokyo, JAPAN |
CEO | Masatoshi Kumagai |
Business Description | ■Investment, business expansion and joint venture support for IT venture companies that are publicly listed in Japan or abroad and for private companies. ■Fund management - including Blog Business Fund Investment Limited Partnership (total ￥2.2 billion) ■Major investments 25 companies including: Full Speed Inc. (TSE Mothers Market) , Next Co. Ltd, (TSE Mothers Market), AXEL MARK, Inc, Web-Shark, Inc, Jetrun Technology Corporation, Jimaku.in, ANY, ACCESSPORT |
Capital | ￥210, 000,000 |
GMO Internet Inc.
Company Name | GMO Internet Inc. http://www.gmo.jp/en (TSE First Section Code: 9449) |
Address | Cerulean Tower, 26-1 Sakuragaokacho, Shibuya ku, Tokyo, JAPAN |
CEO | Masatoshi Kumagai |
Business Description | ■Internet Use Support (Infrastructure) ■Internet Advertising Support (Media) |
Capital | ￥9,651,750,000 |