Officials from in-game advertising firm IGA Worldwide have announced that the company has secured a first close of $12 million in its initial round of institutional financing, as it continues to prepare for a wider launch of its service.
Investors were led by New York-based Easton Capital Group and Morgenthaler Venture, as well as existing investor DN Capital. IGA Worldwide’s proprietary Radial Network is used to deliver a range of advertising content including audio, video and 3D geometry into both PC and console games.
"This funding round will help us take in-game advertising to another level," said IGA Worldwide CEO, Justin Townsend. "The medium is already proving itself, but this vote of confidence along with our unique, proven approach to the market means that there is no end to the value we can provide to both advertisers and game publishers."
"We and Morgenthaler Ventures both believe that this is a major market with explosive growth potential. After an extensive analysis of the space and feedback from the varied constituencies served, we targeted IGA as the most attractive player based on the unique breadth of its management team and their service and product offerings," said John Friedman, managing general partner of Easton Capital Group.
According to an IGA Worldwide statement citing recent analyst research, in-game advertising is forecast to grow by at least 40 percent this year and exceed $1 billion before the end of the decade. IGA's major competitors in the in-game ad space include Massive Inc. and nascent efforts by the Fox-owned GameSpy/IGN.