Nolan Bushnell’s son Brent has raised seed funding to launch his first mobile gaming company called Doppelgames. XG Ventures and TomorrowVentures is investing between $250,000-$500,000 in Doppelgames. XG and TomorrowVentures are VC firms that are run by employees associated with Google. Google CEO Eric Schmidt is an investor in TomorrowVentures and XG was founded by four early Google employees.

Y Combinator, the successful incubator firm started by Paul Graham has raised $8.25 million in funding from Sequoia Capital, Ron Conway, Paul Buchheit, Aydin Senkut, XG Ventures, and Geoff Ralston. Last year Y Combinator raised $2 million. Y Combinator plans to increase the number of companies that they provide start-up funding to. Since starting in summer 2005, Y Combinator has invested in about 207 startups. [TechCrunch]