San Jose-based Gaia Interactive, the company behind teen-targeted social network and MMO Gaia Online, has picked up an $11 million Series C round of venture funding from VC firm Institutional Venture Partners.

According to Gaia Interactive, over five million users participate in the community every month, with 350,000 logging into Gaia Online each day. Research group Hitwise also claimed in an April 2008 report that the service had the highest average visit time among social networking websites.

Previously, the company raised $12 million in Series B in March 2007 to finance the free-to-play MMO. According to CEO Craig Sherman, Gaia Interactive intends to use its new capital to grow and develop new site elements for Gaia Online.

Said Institutional Venture Partners General Partner Norm Fogelsong: "Gaia Online is one of the most exciting companies that we have seen in the online social community space. The breadth of activity available on the site and the level of engagement of the users are truly extraordinary.  It is a privilege to be involved with such a strong management team, one that is leading the way in virtual goods transactions.  We feel that Gaia Online is poised for explosive growth."