Chinese social networking site snags cash

Kaixin001, also known as "Happy Net," raises $20 million in VC funding

Chinese social networking Website, Kaixin001, has raised $20 million from Qiming Venture Partners and existing investor Northern Light Venture Capital, reports peHUB.  

Kaixin001, also known as “Happy Net,” was launched in April of 2008.  The startup grew to 8 million active users in less than 5 months from its opening.  This is the SNS’s second round of funding.  Its first came back in September of 2008, and totalled at $4 million dollars.  

As of 2009, Kaixin001 is ranked as the 13th most popular Website in China, according to research by Alexa Internet.  

Due to this new round of funding, Kaixin001, is apparently seeing an increase in advertisers, says this report.  No names or number of advertisers have been disclosed as of yet. 

Whether it be through advertising, virtual goods or casual games - social networking sites are trying to find reliable business models.  Facebook, with its 200 million monthly active users only generates $2.57 in annual revenue/user.  On the other hand DENA, a Japanese social networking site with 12.9 million monthly active users generates $29.37 in annual revenue/user.  These stats taken from this article.   Facebook is currently focused on an advertising model, while DENA is more focused on virtual goods and social gaming. 

For an overview of the site, in English, see video below.

Image source - asia.cnet.com