Gaming Company For Social Networks, Zynga Raises $10 Million

Posted Jan 19, 2008

Zynga Game Network is a company that builds online games for social networks like Meebo, Bebo, Friendster, and Facebook.  The Zynga Game Metwork was created by Mark Pincus.  Mark Pincus also started and  Currently, Zynga has 27 employees and the team have created games like Poker, Black Jack, Risk, Battleship, and Boggle for social networks.

Some of the games that Zynga has created stick out more than others.  For example, Texas Hold Em’ has thousands of users.

“People already love to play casual games,” stated Fred Wilson, partner at VC firm, Union Square Ventures. “But when you take a casual game and stick it inside a social network, it becomes way more exciting. This is like pouring gasoline on fire.”  Union Square Ventures recently led a $10 million investment in Zynga.

Zynga generates revenue by selling ads to creators of the games.  Everytime a user installs an advertiser’s application, the advertiser is expected to pay 50 cents.  Or game players are given incentives for installing advertiser applications such as increased funds for games of Black Jack.