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CNET NEWS -- July 14 -- Gaia Online, a virtual world targeted at teens, has raised $11m in a series C round of financing from Institutional Venture Partners. The round brings its total financing to more than $32m. Its previous investors include Benchmark Capital, Redpoint Ventures, and Time Warner. Craig Sherman, CEO of Gaia, said the company plans to use the funds to continue developing the site. This summer, for example, Gaia said it will introduce a casual (and free) Flash-based massively multiplayer online game, or MMO, that has been in development since last year.

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