The Best Buy-backed social networking platform has secured funding from investors including NetEase in a round boosting its overall funding to $77m.
IMVU, the US-headquartered operator of an avatar-based social network, has raised $35m from investors including internet company NetEase, TechCrunch reported yesterday.
Growth capital firm Structural Capital and undisclosed other investors also took part in the round, which brought the company’s total funding to $77m according to TechCrunch.
Founded in 2004, IMVU has created a video game-like platform that enables users to create 3D virtual rooms where they can chat with other users through customisable avatars. It had more than 7 million monthly active users as of 2020.
The deal follows a restructuring that involved IMVU becoming a subsidiary of a new parent company named Together Labs. It recently launched a virtual currency called Vcoin that can be converted into fiat currencies, and will use the funding for product development and other growth-based initiatives.
Daren Tsui, chief executive officer of Together Labs, said: “We appreciate the confidence this major investment represents led by NetEase and other investors.
“The formation of Together Labs is a new chapter for the company allowing us to aggressively pursue our vision of immersive social metaverses where authentic friendship and peer-to-peer commerce thrive.”
IMVU reportedly raised $1m from investment firm Seraph Group in 2006 before adding $8m in series A round from unnamed investors the same year.
Best Buy Capital, the corporate venturing arm of retailer Best Buy, led a $10m round for the company that also featured Menlo Ventures, Allegis Capital and Bridgescale Partners in 2009.
