If you’d been wagering on the explosion of venture capital investments in social gaming firms late in 2009, you’d be making off like a bandit right now. Just days after RockYou brought home $50 million in funding, and Playdom announcing their $43 million haul – according to VentureBeat, the biggest fish in the pound, Zynga has recently raised an additional $15.18 million in funding.

Zynga founder Mark Pincus
With more than 196 million users on Facebook alone, Zynga is clearly the market dominator right now. According to the VC filing, there were no new investors listed, presuming that the additional funding has arrived from previous or currently funding partners. This latest round of funding is equal to almost half the initial $40 million Zynga raised in their first round of VC funding. Previous venture capital has been provided by Kleiner Perkins, Foundry Group, Avalon Ventures, Institutional Venture Partners and Union Square Ventures.
This latest influx of cash is only one part of the party going on at Zynga. The social gaming company current enjoys the number one app spot on Facebook, with over 65 million monthly users, FarmVille is clearly the industry benchmark to beat.
And while Zynga might be the top of the heap in the Facebook app world, a market that they’ve been less than success in is mobile (read:iPhone) games. In a recent interview with AdAge, Zynga founder Mark Pincus states, “Smartphones. They’re the next frontier in social gaming.” While some might argue that that frontier is already here, we’ve still yet to see what wonders Zynga can do for mobile gaming when given the proper amount of funding and resources to devote to the platform. Could this recent bestowment of funding be earmarked for that exact purpose? And remember, Apple only recently gave the green light to microtransactions within free-to-play games, and area where Zynga shines.
Another way of looking at this new capital is a clear display of faith from investors that the potential class action lawsuit that Zynga and other social gaming companies are looking at is something that can be handled, and shouldn’t slow development.




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