Hangout Industries, the company behind Facebook game Fashion City, has raised $2 million in equity from its existing backers. It has previously raised $6 million from Highland Capital Partners and Polaris Venture Partners in March 2007 and another $4 million last June.
CEO Pano Anthos described the $2 million from insiders as a "prelude" to Mass High Tech and noted that his company looking to add another $3 million from new venture capital firm. Anthos says Hangout is currently in discussions to raise those funds.
Hangout's Fashion City currently has over 315,000 monthly active users on Facebook, so it seems to be doing well. Hangout initially had a broader approach to virtual worlds. In 2008 it showed off a world targeting 16-to-24-year-olds with more unisex appeal. It managed to bring in a few partners and included games, music, and even physics. Fashion City is definitely more targeted at young girls, but Hangout may expand.
More generally, the company is working to develop a social gaming platform to run on social networks and sell virtual goods. Its higher-end technology may still come into play.
For now Anthos told Mass High Tech that the money would go towards new distribution strategies and efforts, not hiring.
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