Challenge Games Secures $10 Million Financing

AUSTIN, Texas--(BUSINESS WIRE)--Challenge Online Games^TM, Inc. (Challenge Games), developer of the popular online fantasy game Duels and the new fantasy baseball and card collecting game Baseball Boss, announced it has secured $10 million in Series B funding. The round is being led by Globespan Capital Partners with participation from Series A investor Sequoia Capital as well as existing investors.

“We believe this funding further demonstrates that we are bringing innovation and value to the gaming industry”

Duels and Baseball Boss are the first titles developed by Challenge Games. They’re free-to-play online games that combine the collectibility and trading associated with collectible card games (CCGs) and sports cards with the competitive aspects of massively multi-player games (MMORPGs) and the ease of access of community Web 2.0 applications. They are also unique in their asynchronous, short-form design, which allows them to be played in 5-15 minute increments rather than in long marathon sessions.

“Challenge Games is addressing a real need in the market,” said Eugene Yoo, Vice President at Globespan Capital Partners. “Short form, free-to-play, web-based games have the potential to pull new consumers into the category. And the engaging gameplay of their titles appeals to the active casual and hardcore gamer as well.”

“We believe this funding further demonstrates that we are bringing innovation and value to the gaming industry,” said Andrew Busey, founder and CEO of Challenge Online Games. “This funding will help us accelerate the growth of our business through the development of new games, explore partnership opportunities and potentially acquisitions.”

Duels and Baseball Boss are free to play. Gamers can collect items and cards within the game and trade them with other players. They can also sign up for VIP memberships for a small subscription fee, which provides additional benefits such as the ability to buy special items and cards to enhance the gaming experience.

To play Baseball Boss, visit www.baseballboss.com. To play Duels, visit www.duels.com or http://apps.facebook.com/duelsfb. For more information on Challenge Games, visit www.challengegames.com.

About Globespan Capital Partners

With offices in Boston, Palo Alto and Tokyo, Globespan is a leading venture capital firm committed to building a balanced portfolio in the information technology sector. The firm primarily targets US and Japan-based companies in the software, Internet/Infrastructure, communications and systems and peripherals sectors with a typical investment ranging from $250,000 to $15 million. The Globespan team has combined experience of more than 100 years in private equity investing, entrepreneurship and operations and has been involved in 16 startups as individuals.

Since 1996, the Globespan team has invested in more than 125 companies. Portfolio companies that have gone public include: Airgate PCS, Avanex, Bladelogic, Brocade, Clearwire, Glu Mobile, Net Perceptions, Shoretel, Silknet Software, Virtusa, and Vixel. Acquired portfolio companies include: Aptis, Argon, CDS, Cerulean, Digital Island, eDocs, Encommerce, m-Qube, Monterey, Obsidian, Ocular Networks, Pirus and Trigo. For more information, please visit www.globespancapital.com.

About Sequoia Capital

Sequoia Capital provides venture capital funding to founders of startups who want to turn business ideas into companies. As the “Entrepreneurs Behind the Entrepreneurs,” Sequoia Capital’s Partners have worked with innovators such as Steve Jobs of Apple Computer, Larry Ellison of Oracle, Bob Swanson of Linear Technology, Sandy Lerner and Len Bozack of Cisco Systems, Dan Warmenhoven of Network Appliance, Jerry Yang and David Filo of Yahoo!, Jen-Hsun Huang of nVIDIA, Michael Marks of Flextronics, Larry Page and Sergey Brin of Google, Chad Hurley and Steve Chen of YouTube and Dominic Orr and Keerti Melkote of Aruba Wireless Networks. To learn more about Sequoia Capital visit www.sequoiacap.com.

About Challenge Online Games, Inc.

Challenge Online Games (Challenge Games) creates online games that are fun and easy to play whether you’re a serious or casual gamer. The company was founded by veteran entrepreneur and gamer, Andrew Busey, author of Secrets of the MUD Wizards and creator of one of the first instant messaging applications. Challenge Games currently offers Duels and Baseball Boss - multiplayer web-based games that combine the best of the collectible card games (CCGs) and traditional role-playing games with the convenience of the short-form gaming experience. The company also holds a multi-year licensing agreement with MLB Advanced Media, LP (MLBAM), the interactive media and Internet company of Major League Baseball. Challenge Games is based in Austin, Texas and is privately held with funding from Sequoia Capital. For more information on Challenge Games visit www.challengegames.com.

Challenge Games, Duels and Baseball Boss are trademarks of Challenge Online Games, Inc. All other names may be trademarks or registered trademarks of their respective owners.