Trion Grabs $30M

Entertainment startup gets cash from media giants including Time Warner and Bertelsmann.

By Ryan Olson July 9th, 2007

Silicon Valley video game and entertainment startup Trion World Network said Monday it has secured $30 million in funding from multiple investors including some of the world's largest media companies.

Built around the idea of creating and publishing original video games and entertainment accessible via broadband Internet, Trion said the new money and partners will help it develop and publish additional games and entertainment franchises.

Los Angeles venture capital firm Rustic Canyon Partners led the round and was joined by media giants Time Warner, NBC Universal-and parent company GE-along with Europe's Bertelsmann. Existing investors Doll Capital Management and Trinity Ventures also participated in the round.

Redwood City, California-based Trion hasn't revealed much about its network and games but said the titles will combine gaming, traditional media, and the Internet. Expect Bertelsmann, NBC Universal, and Time Warner to bring some of their own intellectual property to the young company as well. "Having these media stalwarts and IP owners... provides us with some pretty amazing access [to content]" said Trion CEO Lars Buttler.

Mr. Buttler, a former Electronic Arts vice president, launched Trion in September along with Jon Van Caneghem, an experienced game developer whose resume includes the creation of the Might and Magic game franchise (see Trion Makes its Internet Play).

The company said it plans to shift an industry paradigm focused on the packaged goods business to one where games become a service accessible via different types of Internet-enabled devices. Trion intends to deliver content via different channels and is working with Hewlett-Packard to design and build a technology infrastructure.

Mr. Buttler said Trion would announce its first big game later this year.

Analyst firm DFC Intelligence predicts the worldwide online game market will be worth more than $13 billion by 2012, up from $4.5 billion in 2006. Major growth will come from digitally distributed content and the sale of virtual items like clothing and equipment inside games and virtual worlds.

Asked about the company's biggest challenge, Rustic Canyon Partner and new Trion board member Nate Redmond said one part is meeting milestones on time-something it has done thus far. Delivering quality entertainment is also vital. "It's very clear that the success of the underlying content is going to be critical," Mr. Redmond said.

Trion is the second gaming startup in two months to announce a partnership with big media companies. In June, Hollywood game production company Brash Entertainment unveiled itself atop a $400 million investment (see Brash Gets $400M).

Brash plans to make video games based on movies, television shows, and movies. The company said it has acquired some 40 licenses, reached agreements with five film studios, and has 12 games in development.

Asked about potential similarities between Trion and Brash because both have media company connections, Mr. Buttler emphatically stated that his company's content is "disruptive from the ground up." While there may be some overlap, Trion's offerings will be fundamentally different, he added.