Social network Xuqa’s in the black
Cynics take note, social networking and online game startup Xuqa has announced that their daily revenue has exceeded their operating costs and that they will take no more VC funding. They’ve raised $1.3 million from BV Capital and Skype investor Morten Lund; about half of that funding is left a year after launch.
Xuqa is currently focused on poker and hot-or-not style modeling contests but other games will be rolled out soon. Competitors play for “peanuts”, the in-game currency. Modeling contest winners get peanuts, interviews with a partner modeling agency and intros to other agencies. Those peanuts are given in exchange for activity on the site and then redeemed for privileges including the ability to see who has viewed your profile page and tools that can be used in play. Players who reach the highest status level in the game are given a $1000 cash prize.
Users play the games on the site for free and revenues are generated in some very interesting ways. Instead of paying cash for in game currency, users fill out market research surveys, browse Cost Per Action advertisements and refer other users. Other than those pages, the rest of the site is ad free.

technorati tags:Techcrunch, Xuqa, SocialNetworking, VCs, BreakEven