European Founders Fund backs virtual world for kids creator Dizzywood

Written on 27th August 2008                                                                                                              5 COMMENTS
Robin Wauters, Next web enthusiast & Plugg organizer

The European Founders Fund, the investment vehicle of the infamous Samwer brothers, puts money in social networking sites other than Facebook. According to a regulatory filing picked up by peHUB, the EFF has invested $1 million in Series A-1 funding for Dizzywood, a San Francisco-based creator of entertainment websites for kids.

“Dizzywood is a fun virtual world for kids where you can play free games, explore unique and imaginative areas, and meet new friends in a safe environment. Whether it’s a visit to a Mayan-themed jungle or a super power challenge to defeat Emperor Withering, Dizzywood offers children ages 8-12 the opportunity to create their own adventure, cooperate with other players in exciting games and challenges, and have fun while learning.”

Virtual worlds for kids is certainly a hot space: both RocketOn and Knowledge Adventure recently raised $5 million second rounds, Gaia Online took $11 million in a third round and Disney recently acquired Club Penguin for $350 million (with $350 million in earn out).

Dizzywood won the Best in Show Award at the 2008 Under the Radar Conference. Last February, TechCrunch reported that the company had raised $1 million Series A in a round led by Shelby Bonnie with Charles River Ventures with other individual investors also participating.

Dizzywood has notable founders, including Scott Arpajian, who headed CNet’s Download.com for over a decade in the past, ex-Microsoftie and former Wallop CTO Sean Uberoi Kelly and Ken Marden.

(Hat tip to Paidcontent)