Cash for Virtual Goods Company Rixty Raises $1.24 Million

With a business model of helping online gamers to exchange cash for virtual goods, Rixty has raised a $1.24 million seed round of funding from a group of early stage investors. The company works with Coinstar, the coin machine company, and convenience stores in more than 20,000 locations, letting users purchase credits or pre-paid cards that they can redeem in online games.

Many gaming companies have been working to get a place in physical locations. Most of the large social gaming companies have deals with pre-paid card providers like InComm and convenience stores like 7-11 or larger retailers like target. Like virtual candy, game credits are a convenient and impulsive purchase. For example, if you’re buying real candy at your neighborhood store with your pocket change, and you’re going home to play your favorite online game, then why not buy access to some virtual goods to help you do better in the game. Rixty’s credits can be used across games.

Deals with Coinstar and regional convenience stores, like Stripes and Cumberland Farms, help the company reach customers that competitors can’t, according to head of business development Jason Hovey.

The San Francisco company has cut deals with a diverse group of game companies. In Zynga’s FarmVille, for example, you can redeem Rixty in Offerpal’s offer window, above the advertising offers. Here’s the list: Aeria Games, Atlus Online, Bigpoint, Blue Frog Gaming, Challenge Games, DoubleDing, Flowplay, G4Box, Games Campus, HitGrab Labs, IGG, ijji, Kru Interactive, Mochi Media, Ndoors Interactive, Inc., NetDragon, Ntreev, Offerpal, Orbis Games, Outspark, Perfect World, Roblox, THQ*ICE, Three Rings, Wicked Interactive,

Javelin Venture Partners led the round. Accelerator Ventures, First Round Capital, Freestyle Capital, Nueva Ventures and SoftTechVC participated.