Brazilian social game developer Vostu has taken $30 million in funding from Accel Partners and Tiger Global Management, as reported by the Wall Street Journal. Vostu publishes its games primarily on Orkut, a Google-owned social network that’s obscure in the US but extremely popular in Brazil, which is South America’s largest Internet market. Accel partner Jim Breyer will join Vostu’s board of directors as part of the deal. Breyer also sits on Facebook’s board of directors.
Vostu is sometimes called the “Zynga of Brazil.” Its flagship game is Mini Fazenda, a farming sim that’s similar to Zynga’s current flagship game FarmVille. While Vostu’s deal may seem small when compared to earlier monster social game deals like Electronic Arts’s $408 million purchase of Playfish or Disney’s $763 million purchase of Playdom, it’s a very large sum of money by South American social game development standards. Zynga itself remains privately held, but its estimated valuation is $5.4 billion according to Second Shares.
Accel has invested in social games before, most notably as an earlier backer of Playfish. Hedge fund Tiger Global is one of Zynga’s backers. Vostu’s total funding raised in the past six months now stands at approximately $50 million, an enormous sum by South American industry stands. Vostu says it is a profitable company that plans to use the funds to expand its operations. It currently employs 220 people and is based in New York, with offices in Sao Paolo and Buenos Aires. Vostu’s titles serve over 20 million monthly active users, which means roughly one-fourth of all Brazilians with Internet access play Vostu’s games.
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