Zynga Completes $29 Million Financing, Led by Kleiner Perkins Caufield & Byers and IVP
Bing Gordon, KPCB Partner and EA Founder, Joins Board Company Acquires YoVille – Largest Virtual World Game on Social Networks
San Jose , Calif. – July 23, 2008 – Zynga, the largest social gaming service, announced today that it has completed a new round of funding led by Kleiner Perkins Caufield & Byers along with Institutional Venture Partners (IVP). The $29 million investment also includes funding from previous investors Union Square Ventures, Foundry Group and Avalon Ventures. The funding will be used to accelerate Zynga’s creation of next generation social games.
The company also announced today that Kleiner Perkins partner and former co-founder and chief creative officer of Electronic Arts, Bing Gordon, will take an active director role in building the company. He will join LinkedIn’s chairman Reid Hoffman, Foundry Group’s Brad Feld and Zynga’s CEO Mark Pincus on the company’s board of directors.
In addition, Zynga announced today that is has acquired YoVille, the largest virtual world game on social networks.
“We are excited that Kleiner Perkins and IVP are joining our terrific investor group,” said Pincus. “With this new investment, we are doubling down on social gaming, raising the production quality and scaling the infrastructure. We’re also excited to have Bing, who has been an amazing contributor even before becoming formally involved, join in an even more significant way.”
“Social gaming is one of the most exciting applications of the consumer Internet,” said John Doerr, partner, KPCB. “Zynga gives its millions of customers a new way to make friends and have fun on the web.”
“Mark and the talented team at Zynga have the same kind of vibrant energy we had in the early, industry-defining years of EA,” said Gordon. “But their designs, technologies and approaches are all new, and are further broadening the reach and promise of interactive entertainment.”
“Social gaming, and Zynga in particular, is bringing gaming to the mass market,” said Sandy Miller, partner, IVP.
Savvian Advisors, LLC, served as the financial advisor to Zynga for this transaction.
Zynga (www.zynga.com) is the largest social gaming company. Zynga games are available on Facebook, MySpace, Bebo, Hi5 and Friendster and include Texas Hold’em Poker, Blackjack, Mafia Wars, Scramble, Word Twist and Triumph. The company is funded by Kleiner Perkins Caufield & Byers, IVP, Union Square Ventures, Foundry Group, Avalon Ventures and The Pilot Group, as well as leading individual investors Reid Hoffman and Peter Thiel. Zynga is headquartered at the Chip Factory in San Francisco.
About Kleiner Perkins Caufield & Byers
Kleiner Perkins Caufield & Byers is passionately committed to helping portfolio companies succeed. Entrepreneurs gain access to KPCB’s matched portfolio of companies and associations with global business leaders. These relationships are the foundation for strategic alliances, partnership opportunities and the sharing of insights to help build new ventures faster, broader and with less risk.
About Institutional Venture Partners
With more than $2.2 billion of committed capital, Institutional Venture Partners (IVP) is a premier later-stage investment firm in the technology and media markets. Founded in 1980, IVP specializes in venture growth investments, industry consolidations, recapitalizations, buyouts, and select public market transactions. During its 28-year history, IVP has invested in over 200 companies – with more than 80 IPOs. It has consistently delivered superior returns with a 27-year IRR of 43.2%. IVP has offices in Menlo Park and San Francisco, California.