Red 5 secures US$ 18.5 million in funding

Californian developer Red 5 Studios has secured an investment of US$ 18.5 million (13.97 million Euro) from financiers Benchmark Capital and Sierra Ventures, according to Reuters.

Red 5 was established in September 2005 by a group of former Blizzard employees. The company is led by William Petras and Mark Kern, who were previously director and team lead on World of Warcraft.

In February the studio announced an exclusive partnership deal with Korean publisher Webzen to produce a new MMOG, but details of the title have yet to be announced.

Benchmark Capital's other investment interests include Second Live, EA-purchased mobile gaming company Jamdat, and auction site eBay. Sierra's portfolio also features a range of IT companies and the firm specialises in building companies from the ground up.