Weblo Raises $3.3M

Okay, I kind of get Second Life and the need for many people to have another digital existence to fill in whatever they’re missing from their physical existence.

What I don’t get is all the size of these virtual economies and the money being spent on digital “assets” such as cars, clothes and property. Perhaps it’s because I’m careful about spending money on tangible things let alone stuff made out of bits and bytes.

This is why I don’t get the concept of Montreal-based Weblo, which launched last year by creating a new world where people can buy and sell virtual properties. Why to buy California? Well, that will cost you a cool $53K. The wild part is Weblo owned all of the inventory out of the gate so it pulled in all the money from initial sales. Not a bad way to recoup your investment and make some money if the concept flies – which it seemed to do.

In any event, Weblo has just raised $3.3-million in venture capital from VantagePoint Venture Partners. Weblo’s original investors included Richard Rosenblatt the co-founder, chairman and CEO of Demand Media and the former Chairman of MySpace.com and CEO of parent company Intermix; Fred Harman, the managing partner of Oak Investment; Matt Hill, the chairman and founder of eForce Media; and William Woodward, the managing director and founder of Anthem Venture Partners.

For more thoughts, check out Austin Hill who thinks the Weblo concept makes sense. Venture Beat, which described Weblo as a “pyramid scheme” a few months ago, also posted on the VC news.

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