Outspark Raises $8.3 Million to Grow Virtual Goods Gaming Business

outsparkSince 2008, San Francisco based Outspark has been carving out its success by porting Asian multiplayer games. Host to popular titles such as Fiesta and the Secret of the Solstice, Outspark now reaches 4.7 million registered global users – with 75% stemming from the United States, and 25% coming from Europe – and 5.4 million monthly visitors.

Now, it’s preparing to continue its growth with a new round of funding – the company has just raised $8.3 million in a C round from Syncom and SBI Investments. Previously, the company has raised money from Silicon Valley VCs DCM and Altos Ventures, as well as China’s largest and most popular Internet service portal, Tencent. The most recent round was led by Syncom, a VC firm focusing on “underserved segments of the media and communications industry” and another Asian investment firm, SBI Investments, one of the largest Japanese firms in the country.

Investors are banking on the continued growth of virtual goods transactions in the US. The Asian virtual goods market 25 times larger than that in the States.

Free-to-play games utilizing virtual goods have proven to be quite popular during the current recession. Since the games are free, a significantly wide net is cast to take in large volumes of users, those that pay spend an average of $45 per month with the company.

Will virtual goods become a $5 billion (as estimated by +8* | Plus Eight Star) per year industry in the US? It’s hard to say when, but hopefully recent legal changes in China regarding virtual currency won’t spook US entrepreneurs. We’re looking forward to seeing where Outspark goes from here.