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June 12, 2012 04:23 pm GMT

Trouble At Habbo Hotel: Balderton Dumps 13% Stake In Owner Sulake Over Dodgy Child Content

Easter_bunnyTop European VC firm Balderton today has confirmed that it is ditching a 13 percent stake in Finnish social networking and virtual world company Sulake, creators of Habbo, after the youth-oriented site was exposed for hosting illicit content not appropriate for its intended users. Balderton had been an investor in Sulake for the past eight years and together with other backers had invested some $35 million in the site. This is the first time in Balderton's history that it has exited an investment over a matter like this, we understand. Meanwhile, another investor, 3i, which owns 15 percent of the company, has told TechCrunch that it will "remain committed to Sulake."The story of the dodgy content was first brought to light as the UK broadcaster Channel 4 was investigating allegations over the content, for a program that is due to be aired tonight. That investigation was then picked up by the UK tech blog The Kernel, which reported Balderton's exit. TC understands from a source that Balderton is leaving behind its stake and not looking to recover any funds.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/gGMkS17iGJw/

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