Irvine, Calif.– June 18, 2007– K2 Network, Inc. ( www.k2network.net), an online game publisher, today announced that the company has closed a $16 million Series B round of venture capital led by Intel Capital, the investment arm of Intel Corporation. The funds will be used to further develop and internationally market and grow its portfolio of personal computer, Free2Play™ multi-player online games.
Intel Capital was joined in this funding by new investors Greycroft Partners, Khosla Ventures and Novel TMT Ventures as well as returning investors BV Capital and mvp Capital. The online gaming industry has grown rapidly in recent years and is forecasted to hit $13 billion by 2011 according to DFC Intelligence. With its plans for international expansion, key portfolio acquisitions and more, K2 Network is poised to be a significant player in that growth
“K2 Network has demonstrated leadership in this market with its innovative business acumen to build a gaming company that is focused on service-oriented architecture,” said Joshua Hong, CEO and Co-founder of K2 Network.“K2 Network is in a position to take some major steps in growth and market share and we are glad Intel Capital, as a strategic investor, is supporting us as we write the next exciting chapter in our company’s history.”
“The online gaming market segment is experiencing tremendous growth supported by multiple revenue models from subscription, free to play, advertising supported to micro-transaction and virtual currency,” said Alexander Marquez, director of strategic investments for Intel Capital.“K2 Network’s extensive gaming knowledge along with its unique Free2Play model is well positioned to capitalize on this exciting opportunity in interactive entertainment.”
Serving over 10 million gamers in over 100 countries, K2 Network is a leading Western Hemisphere MMO service company with successful online game titles from Asia. Climbing rapidly, K2 Network is one of the fastest growing companies in the fastest growing segment of the video game industry. K2 Network has an operational presence in the United States, Korea and India.
In 2001, K2 Network was founded on the belief that the community experience of Massively Multiplayer Online Games (MMO’s) will become one of the most significant forms of entertainment in the 21st Century. K2 Network is devoted to removing barriers between players and games, believing players should experience a game before they invest any money in it. K2 Network digitally distributes games for free through its Free2Play™ model where players can choose between completely free, discreet item/service purchases, or paid monthly Premium services.
About Intel Capital
Intel Capital, Intel's venture capital organization, makes equity investments in innovative technology start-ups and companies worldwide. Intel Capital invests in a broad range of companies offering hardware, software, and services targeting enterprise, home, mobility, health, consumer Internet, semiconductor manufacturing, and cleantech. Since 1991, Intel Capital has invested more than U.S. $6 billion in approximately 1,000 companies in over 40 countries. In that timeframe, about 157 portfolio companies have gone public on various exchanges around the world and another 187 have been acquired by other companies. In 2006, Intel Capital invested about US$1.07 billion in 163 deals with approximately 60 percent of funds (excluding Clearwire) invested outside the United States. For more information on Intel Capital and its differentiated advantages, visit www.intelcapital.com.
About K2 Network
K2 Network publishes and services highly engaging online games and cultivates dynamic player environments. The company puts Gamers First™ by giving them free access to its compelling titles, supporting its amazing communities, offering creative pricing models and updating its games based on community feedback. K2 Network currently has 10 million registered users and offers War Rock, Knight Online, Global MU Online, Red Stone and Sword of the New World: Granado Espada. K2 Network has an operational presence in the United States, Korea, and India. More information can be found at www.k2network.net.