Updated: Gaia Online Gets $11M in Series C

Gaia Online announced today that it had received $11 million in a Series C round of funding from Institutional Venture Partners. In a statement, CEO Craig Sherman said that the money will help Gaia as the virtual world continues "growing and developing new site elements to support the rapidly increasing interest in Gaia Online." The first big new feature is Gaia's upcoming casual MMO, though it's not clear if that's the focus of the investment.  Over December and January, Gaia participated in a Series B round led by Sony and Time Warner that has been pegged at $12 million.

“Gaia Online is one of the most exciting companies that we have seen in the online social community space,”  Norm Fogelsong, a General Partner with IVP, said in  a statment. “The breadth of activity available on the site and the level of engagement of the users are truly extraordinary. It is a privilege to be involved with such a strong management team, one that is leading the way in virtual goods transactions. We feel that Gaia Online is poised for explosive growth.” UPDATE below

As noted, Gaia has already taken approximately  $12 million in Series B investment within the last 7 months. I asked Gaia Online why the company was taking more money now and if it would continue to look for more. Apparently, IVP came knocking without much effort on the part of Gaia beyond its normal work.

"Although Gaia Online didn't proactively pursue this most recent round of funding, we're thrilled that it will empower us to deliver on many of the requests from the community, making the site a more engaging and exciting place," CEO Craig Sherman said via email.

Also, Gaia confirmed that IVP will not be taking any role in the company.