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12 Year Old Gets $6.5M for Gaming Company

Posted by samzenpus on Thu Sep 20, 2007 04:39 AM
from the that's-a-lot-of-candy dept.
Bayscribe writes "A Silicon Valley company co-founded by a 12-year-old has just raised $6.5 million in venture capital. PlaySpan, based in Santa Clara, Calif. says it offers game publishers a technology that lets users make payments and shop for other items. It calls itself the first "publisher-sponsored in-game commerce network." Arjun Mehta, a 6th grader, says on his Web site that he is passionate about software that can make the game experience more "rewarding," and that he started the company last year in his garage. He paid for it from earnings made from selling online game items he won."
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  • bubble 2.0 (Score:5, Funny)

    by wwmedia (950346) on Thursday September 20, @04:41AM (#20678549)
    (http://www.footballfans.tv/)
    i smell another dot com bubble bursting
    • Re:bubble 2.0 (Score:4, Funny)

      by Opportunist (166417) on Thursday September 20, @04:47AM (#20678573)
      *sniff* Oh, ok. I already thought someone had something reeeeally bad for lunch.
      [ Parent ]
    • Incorrect linkage (Score:5, Informative)

      by asliarun (636603) on Thursday September 20, @04:53AM (#20678597)
      (http://kaa.blogspot.com/)
      The linkage in the article is incorrect. The linked article talks about a startup (Elementeo) founded by a 13 year old kid named Anshul Samar, and NOT about PlaySpan, supposedly founded by 12 year old named Arjun Mehta.

      Sloppy.
      [ Parent ]
    • Re:bubble 2.0 (Score:5, Interesting)

      by discord5 (798235) on Thursday September 20, @04:59AM (#20678629)

      i smell another dot com bubble bursting

      Nope, those are the diapers these babies are still wearing.

      Who invests money in 12 year olds? Who is so insane to do such a thing? Sure, 12 year olds can be bright, talented and even gifted, but I wouldn't trust a 12 year old with 6.5M $, nor his 11 year old vice-president of sales sister for that matter, to make correct business decisions.

      I think it's time I try to sell this kid my 6.5M matchbox car. It's a classic collectors item, worth meeeeellions on ebay.

      [ Parent ]
      • Re:bubble 2.0 by iamhassi (Score:3) Thursday September 20, @10:39AM
      • Re:bubble 2.0 by The Great Pretender (Score:2) Thursday September 20, @10:47AM
        • Re:bubble 2.0 by russ1337 (Score:2) Thursday September 20, @11:46AM
          • 1 reply beneath your current threshold.
      • Re:bubble 2.0 by iNetRunner (Score:1) Thursday September 20, @10:50AM
      • Re:bubble 2.0 by plurgid (Score:2) Thursday September 20, @11:10AM
      • Re:bubble 2.0 by kaizokuace (Score:1) Thursday September 20, @11:50AM
      • Re:bubble 2.0 by romrom97 (Score:2) Thursday September 20, @01:13PM
      • Re:bubble 2.0 by jcr (Score:3) Thursday September 20, @05:49AM
        • Re:bubble 2.0 by TapeCutter (Score:2) Thursday September 20, @08:52AM
        • 1 reply beneath your current threshold.
      • 1 reply beneath your current threshold.
    • Re:bubble 2.0 (Score:5, Insightful)

      by mwvdlee (775178) on Thursday September 20, @05:01AM (#20678631)
      (http://www.vanderlee.com/)
      From the summary it reads like he created an in-game way to buy items.
      I'm pretty sure I've seen this before (i.e. Second Life) and no company worth it's salt would have any trouble implementing this themselves.
      [ Parent ]
      • Yeah, but... by avirrey (Score:1) Thursday September 20, @08:45AM
      • Silk Roads by CasperIV (Score:2) Thursday September 20, @09:14AM
      • 2 replies beneath your current threshold.
    • Re:bubble 2.0 (Score:5, Insightful)

      by Seumas (6865) on Thursday September 20, @06:29AM (#20678935)
      I smell someone with a dad in the industry who gave him access to all the necessary advantages.

      These wonder-kids never spring up out of trailer parks where mom and dad flip burgers and the most advanced high-tech device they own is a VCR.
      [ Parent ]
    • Re:bubble 2.0 by Antiocheian (Score:1) Thursday September 20, @09:12AM
    • Re:bubble 2.0 by recharged95 (Score:1) Thursday September 20, @07:46PM
  • From the article:

    Mehta said that he now intended to drop out of the sixth grade. "School is great, but now that I've got a multi-million dollar company, I need to concentrate on that. After all, Bill Gates and Steve Jobs did it. Sixth grade will still be there waiting for me in a few years. Now excuse me while I ask my mom to drive me in my new Ferrari to the mall."

  • dupe (Score:2)

    by the_unknown_soldier (675161) on Thursday September 20, @04:45AM (#20678563)
    Not only is this story almost certainly a dupe, it's also over 4 months old.
    • Re:dupe (Score:5, Funny)

      by Opportunist (166417) on Thursday September 20, @04:49AM (#20678583)
      Not only is this story almost certainly a dupe, it's also over 4 months old.

      In other words, could someone check whether that company still exists?
      [ Parent ]
      • Re:dupe by Opportunist (Score:2) Thursday September 20, @11:41AM
      • 1 reply beneath your current threshold.
    • Re:dupe by Luke Dawson (Score:1) Thursday September 20, @05:45AM
      • Re:dupe by asd-Strom (Score:1) Thursday September 20, @06:21AM
        • Re:dupe by Luke Dawson (Score:1) Thursday September 20, @06:54AM
          • Re:dupe by troc (Score:3) Thursday September 20, @07:28AM
            • Re:dupe by morgan_greywolf (Score:2) Thursday September 20, @07:42AM
              • Re:dupe (Score:5, Funny)

                by Puff of Logic (895805) on Thursday September 20, @08:25AM (#20679659)

                Fields? Huh. I remember when this was all molten rock and hadn't even finished cooling yet! Now you kids get off of my lawn!
                Molten rock? Luxury! We used to have to bring our own interstellar dust in a bucket and hope that we could pile up enough to have it hold together under its own gravity!
                [ Parent ]
              • Re:dupe by Skrynkelberg (Score:1) Thursday September 20, @10:50AM
              • Re:dupe by pragma_x (Score:2) Thursday September 20, @11:14AM
              • Re:dupe by Convector (Score:1) Thursday September 20, @12:37PM
              • Re:dupe by akasch (Score:1) Friday September 21, @01:24AM
              • Re:dupe by pv2b (Score:2) Friday September 21, @01:35AM
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  • riight. (Score:5, Funny)

    by apodyopsis (1048476) on Thursday September 20, @04:48AM (#20678575)
    dupe or not - that kid has just got to be an insufferable, annoying little snot.

    a bit like "doogie howser MD" only real, remember that?
    • Re:riight. (Score:5, Insightful)

      by jcr (53032) <jcr.idiom@com> on Thursday September 20, @05:52AM (#20678815)
      (Last Journal: Sunday November 05 2006, @05:31AM)
      Until and unless you meet the kid, your assumptions about his character are nothing but projections of your jealousy.

      I say, good for him.

      Now the VC, on the other hand, is probably out of his mind.

      -jcr

      [ Parent ]
      • Re:riight. by cowboy76Spain (Score:3) Thursday September 20, @07:35AM
        • Re:riight. by jcr (Score:3) Thursday September 20, @08:18AM
          • Re:riight. by GeckoX (Score:3) Thursday September 20, @08:44AM
            • Re:riight. by jcr (Score:2) Thursday September 20, @08:54AM
              • Re:riight. by GeckoX (Score:2) Thursday September 20, @08:56AM
              • Re:riight. by root-a-begger (Score:1) Thursday September 20, @11:19AM
              • Re:riight. by jcr (Score:1) Thursday September 20, @01:43PM
              • Re:riight. by jcr (Score:2) Thursday September 20, @02:30PM
              • 1 reply beneath your current threshold.
            • Re:riight. by tm2b (Score:2) Thursday September 20, @09:45AM
      • Re:riight. by benzapp (Score:1) Thursday September 20, @07:59AM
        • Re:riight. by navygeek (Score:2) Thursday September 20, @08:05AM
      • Re:riight. by Hoi Polloi (Score:2) Thursday September 20, @09:10AM
      • Re:riight. by DFENS619 (Score:1) Thursday September 20, @10:18AM
    • Re:riight. by TheVelvetFlamebait (Score:2) Thursday September 20, @06:45AM
    • 2 replies beneath your current threshold.
  • Confused (Score:2, Informative)

    by clarkkent09 (1104833) on Thursday September 20, @04:54AM (#20678603)
    Is it just me or the summary bears no relation to the article it links to. The article talks about this kid inventing a board game, not "a technology that lets users make payments and shop for other items".
    • Re:Confused by ROMRIX (Score:1) Thursday September 20, @08:15AM
  • misleading title (Score:2)

    by rpillala (583965) on Thursday September 20, @04:56AM (#20678609)

    I thought the kid had sold his company for $6.5m

  • by Anonymous Coward on Thursday September 20, @04:57AM (#20678613)
    The actual article is here [venturebeat.com].

    Apparently the kid isn't an actual co-founder, nor the CEO. It's his father running everything, the kid is just a sensationalist marketing tool.

    Really, I highly doubt these kids even know a tiny fraction about the technical aspects of what they're selling or how it's done. They'll get lots of money for sure, and also learn a whole lot along the way, but they're definitely not the brains or management behind the operation at the moment.
  • Kids today grow up so fast (Score:5, Funny)

    by Nymz (905908) on Thursday September 20, @04:58AM (#20678621)
    (Last Journal: Friday October 19, @12:23PM)
    This one turned 13 before I got to the article.
  • Lame (Score:1)

    by OneSmartFellow (716217) on Thursday September 20, @04:58AM (#20678625)
    Link and Blurb about two very different things.
  • I wonder... (Score:5, Funny)

    by farkus888 (1103903) * on Thursday September 20, @04:59AM (#20678627)
    I wonder if this is what my mom thought I could have been doing with my time when she kept yelling at me for wasting all my time touching myself when I was 12?

    I'll have to ask her sometime.
  • The correct link.. (Score:5, Informative)

    by slashmojo (818930) on Thursday September 20, @05:12AM (#20678667)
    Makes slightly more sense with the correct link..

    http://venturebeat.com/2007/09/19/playspan-run-12-year-old-ceo-gets-65m-in-venture-capital/ [venturebeat.com]

    Which is not to say that investing $6.5M in a company run by a 12yo makes much sense but stranger things have happened at sea.. or so they say.
  • Hmm yase (Score:1)

    by ettusyphax (1155197) on Thursday September 20, @05:16AM (#20678685)
    Man, screw college grads with innovative, realistic ideas. I'm givin all my cash to this 12 year old whose mom told my firm that we stand to make millions!
  • Micropayments? (Score:3, Insightful)

    by Rik Sweeney (471717) on Thursday September 20, @05:25AM (#20678725)
    (http://www.parallelrealities.co.uk/)
    Isn't this just micropayments? Seriously, this is why gaming is dying. Developers will send out a half finished game and then charge people to download the extra content (i.e. the stuff they couldn't fit in before the deadline).

    Let's face it, in a couple of years you'll get a game, say, Tekken where the character only has one costume. You'll then have to download the additional 5 different costumes at $2 a go. They'll do the same with maps and you'll only be able to play online with people who have also bought that map...
  • After reading the real article (Score:4, Insightful)

    by faloi (738831) on Thursday September 20, @05:31AM (#20678735)
    It sounds like there's some speculation that the kid doesn't really have that much to do with the company at all. Except for being an effective way to generate press. Nobody pays much attention if some random guy gets a few million dollars for a gaming idea. But a 12-year old...that's news!
  • The harsh reality (Score:5, Informative)

    by morpheus83 (708114) on Thursday September 20, @05:45AM (#20678781)
    A comment says The story about 12 year old co-founder is a big oversell...I know because I broke the story on funding two days ago. The CEO Karl Mehta and Arjun's dad is the real guy behind it...arjun just came up with part of the idea for it, and is not really involved with the business per se. Arjun's mention on the site is a gimmick which will be rectified soon...the release doesn't mention him and for good reason. Venture beat is investigating it, turns out the it is a hoax. Father using his son to make millions.
  • by someone1234 (830754) on Thursday September 20, @05:51AM (#20678811)
    The chinese gold farmers do this since years, isn't there already a patent for this business method?
  • That's NOTHING (Score:2)

    by Ancient_Hacker (751168) on Thursday September 20, @05:53AM (#20678823)
    Some of you may recall a little bit of crazyness a few years back, where almost a MILLION times as much money as was handed to the 12 year old went down the drain. IIRC the final tab for that orgy was about nine *trillion* dollars.

    We humans seem to very quickly forget the not too distant past.

  • Where's the perpective? (Score:5, Insightful)

    by Anonymous Coward on Thursday September 20, @05:53AM (#20678825)
    Has anyone drilled down to find out more info on the kid's background?
    I have done a little, and no, it's not the kid in a vacuum making these
    accomplishments. He's 12 years old and smart, not a super genius born with 142
    man years of VC experience. That's not built into the genetic code or injected
    in the pop tarts he eats. But his support network does have this VC experience.
    You could have achieved similar things as a child, if:
    - You lived in Silicon Valley
    - Had a support network with VC pitching experience
    - Had family with connections to above said group
    - Had family that planned for your achievements

    I've read gushing stories of young entrepreneurs that seem outlandish or super human
    in accomplishment for their age. But, when I dive down into the details, more often than not, I find cases of ready made systems that will not let the child fail.
    Stories of a young furniture magnate with 2 warehouses and a booming business, only to find that his father owns 12 warehouses as is accomplished in the furniture business. The media loves portraying these kids in a light of pure achievement with no mention of their contacts, support and guiding but that is dishonest reporting.

    I guess it makes for a less interesting story when you see the looming shadow of a father pulling strings for the child like a puppet behind the curtain.
    The child seems happy enough with the attention though.
  • Ooh, ditto! (Score:2)

    by kiwioddBall (646813) on Thursday September 20, @06:14AM (#20678871)
    (http://www.petesmith.co.nz/)
    and in other news, someone has decided that pets.com is a good idea
    • Mascot by Dareth (Score:2) Thursday September 20, @08:28AM
  • Should read: "12-year old takes credit for his father's entrepreneurship and garners headlines for his father's company, father rewards extra publicity with new ferrari which kid will subsequently wreck during driver's ed"
  • Here is the link that corresponds to your summary: http://venturebeat.com/2007/09/19/playspan-run-12-year-old-ceo-gets-65m-in-venture-capital/ [venturebeat.com]
  • by superdude72 (322167) on Thursday September 20, @07:34AM (#20679257)
    I couldn't help but notice that Bayscribe's (the submitter) e-mail handle is VentureBeat. So I'm assuming he wrote the article that the writeup links to? If so, that needs to be more clear in the writeup. It's not enough that the e-mail address is a tell. He isn't submitting this article as a disinterested third party who finds it interesting; he most likely wants to drive traffic to his site.

    Kind of explains a lot, actually.

    How very Web 2.0 Bubble...

    Well, there goes 5 minutes I'll never get back.
  • by Anonymous Coward on Thursday September 20, @07:37AM (#20679275)
    I know his father Karl Mehta. He hails from Bombay/India and is a known 'hack' in Silicon Valley devising all sorts of get-rich-quick schemes with his VC brother Miten Mehta (go google). This appears to be one of his yet-another pipedreams. His previous idea was Tradeits.com (www.tradeits.com) which didnt reach anywhere. More here: http://center.spoke.com/info/p2iETB/KarlMehta [spoke.com]

    Please don't waste a min of your time on this crap. Arjun, his son, has no clue about what's going on - his father is using him for the dramatic effect.
  • He paid for it from earnings made from selling online game items he won.

    So he's just one of those thousands of annoying twits who spam the MMOs with "fast, cheap gold" and other game-spoiling ventures. I'm sure he's passionate, alright... but not passionate about the games, it's the money he's after.

    Man, that's really young to be so corrupt!
  • If only it IPO'd (Score:2)

    by gwappo (612511) on Thursday September 20, @08:40AM (#20679815)
    Such a beautiful, obviously overpriced candidate for shorting.
  • I wish ... (Score:2, Funny)

    by xednieht (1117791) on Thursday September 20, @08:52AM (#20679959)
    (http://www.jenom.com/)
    my kid would find a generous VC to suck money out of instead of always emptying my wallet.

  • Games Company Wannabes (Score:2, Interesting)

    by mdwh2 (535323) on Thursday September 20, @08:55AM (#20680003)
    Something that is common on games programming websites (such as Gamedev) is someone with no industry experience, or even programming ability, wanting to make their own game - either assuming a company will pick it up, or wanting to start their own company.

    They tell us how they have a great "idea" for a game. They want programmers to work for them; we ask what they will contribute, and it's "ideas". We tell them that it's like someone with no experience in car design saying they have a great idea for a car, and expecting a company to make it. Typically they want to make a complex game, and most popular of all, it's MMORPGs - so not only do you have the complexities of making a game, but also all the troubles of running a server.

    Misleading articles such as this make me sad - promoting that ideas are important, and an idea is all it takes to get funding, and get into the business. No doubt this will encourage more people to post "I have great idea for a game, I wanna make a MMORPG".

    I'm sure most of us had money-making ideas when we were 12. Some of us pulled it off when we were older, some of us didn't. But there's nothing special about ideas.
  • by frankencat (946892) on Thursday September 20, @09:03AM (#20680119)
    Just saying.
  • Great... (Score:1)

    by beatbox32 (325106) on Thursday September 20, @11:07AM (#20682097)
    (http://blog.humanmodem.com/)
    Now I get to hear from my family, "Hey you work in computers. Why aren't you making $6.5mil like this 12-year-old?"
  • Pay for sex? (Score:1)

    by corifornia2 (1158503) on Thursday September 20, @11:26AM (#20682447)
    I wonder how long it takes before this kid starts pulling in some gold digging whores.
  • by hitmanWilly1337 (1034664) on Thursday September 20, @12:08PM (#20683307)
    He paid for it from earnings made from selling online game items he won.

    What online game was this? Unless it was Second Life, that would more than likely be a violation of the game's terms of service. So, how long before thay start demanding a piece of the action?
  • by stacey7165 (1081097) on Thursday September 20, @01:21PM (#20684975)
    I have heard before that models are over the hill at age 25 - but now software engineers too?

    When I was 12 I programmed a lemonade store where I could sell fictional lemonade to my brothers and sister. I made about $.45 off that puppy. I think I wrote it in BASIC and it ran on a Commodore 64. Somehow, even with a modern computer, I know I wouldn't have been much more capable in present day computing to sell my lemonade stand for anything more than a dollar - and that prob would've come from my mother. Sigh.

    Back to work, a little sadder that I'm 33 and all washed up.
  • Lame (Score:1)

    by OKCfunky (1016860) on Thursday September 20, @08:59PM (#20691383)
    Just making a statement here. But lame. So what if the kid's 12 yrs old. Cute? Not so much when there are dogs in the world who have inherited more. Besides, anyone in the country can make their own company, plop a bunch of money and/or credit into, and voila "I co-founded X!! look at me!!! My baby is CFO!!! OMG!" not looking for points here, just stating the obvious.
  • not run by kid (Score:2)

    by sentientbrendan (316150) on Monday September 24, @05:51AM (#20726649)
    (Last Journal: Monday February 03 2003, @08:59PM)
    if you RTFA *referenced* by TFA, you go on to find out that the company was *founded* by a kid, but no longer run by one. Very deceptive!
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