Venturebeat: A Silicon Valley company co-founded by a 12-year-old has just raised $6.5 million in venture capital.

PlaySpan, based in Santa Clara, Calif. says it offers game publishers a technology that lets users make payments and shop for other items. It calls itself the first “publisher-sponsored in-game commerce network.”

Arjun Mehta, a 6th grader, says on his Web site that he is passionate about software that can make the game experience more “rewarding,” and that he started the company last year in his garage. He paid for it from earnings made from selling online game items he won from quests he fought.

This has got to be downright depressing for most budding entrepreneurs, most of whom strike out while pitching investors for funds, even in their 30s or 40s.

This is the second company led by a middle-schooler of south Asian heritage. In May we wrote about 13-year old founder and chief executive, Anshul Samar, who runs an educational gaming company.

The difference is that PlaySpan is making all the sounds of a traditional silicon valley company, right down to the slick web site and a press release manufactured by a PR firm that is barely decipherable. Mehta will probably learn to write his own press releases within a year. While the “company” section of the site profiles only Arjun, however, a closer look at the press release reveals that the actual CEO is Karl Mehta, which we presume is an older relative — so there’s adult supervision at least. [Update: Rafat has some thoughts about this in comments below, suggesting this is a gimmick. We’re awaiting response to questions we’ve posed to the company, and should note that the PR person who responded to us stressed that Arjun prefers email correspondence.]

New York based Easton Capital led the funding round, along with Silicon Valley based Menlo Ventures, South Korea based STIC International and Hong Kong based Novel TMT Ventures.

The release said the market for “in-game commerce” has surpassed $2 billion this year and continues its rapid growth as more publishers adopt micro-transaction based revenue models.

Shawn Carolan, of Menlo Ventures, has some experience with gaming, as a board member of virtual world game, IMVU. The young Mehta even knows how to pick his VCs.

Social and Connected Entertainment – Online and On-Demand

Got game? Millions do. Gaming is clearly one of the trend stories of the decade. It is making an impact on our lives no matter where we are — in our living rooms in front of the TV, on our cell phones, working at our PC, and coming to a portable media player near you. The next level of gaming is here, and it is being driven by three converging trends: high-definition gaming; on-demand, online gaming; and social entertainment. So hold on, and get ready for a screaming fast, gaming experience. One that dominates with breakneck performance, captivates with stunning visuals and heart-pounding, even breathtaking audio tracks, and goes deep into virtual worlds. And remember PacMan? It and other classic arcade games are making a big comeback. In fact, PacMan is a featured game on Xbox Live Arcade. So what’s up with gaming? What are the trends, and how do they benefit startups, and, most important, what are the must-have games for the holiday season? Sit back, sip some eggnog, invite a friend or two over, and let’s jump into gaming.

Ho Ho Ho. Microsoft Gets Social — Our Game Plan for a Connected Entertainment Experience

Party of one? Rarely happens. Entertainment is becoming a shared, connected experience. A social experience. In fact, we envision a time when all gaming and entertainment services will be connected. Imagine this scenario: A gamer starts a connected game on her Xbox at home, continues it on the cell phone in the cab on the way to the airport, and finishes it up on the plane by plugging into the armrest. It’s increasingly about a social experience — and it’s not just male-dominated anymore.

Ultimately, our vision is to move toward more connected entertainment everywhere, and get everyone involved in the action. Women. Young kids. Older adults.

Beyond gaming, Microsoft TV software platforms are also an integral part of Microsoft’s overall connected entertainment strategy — one that will enable rich TV experiences and new forms of TV-based entertainment and information services. Through Windows Vista, Xbox 360, new mobile devices, and an emerging wave of software-based services, we are delivering more connected and richly personalized experiences for consumers. With all of these converging elements, Microsoft is enabling a platform, and the underlying architecture and tools, for this new world of high-definition gaming and this social entertainment experience. And it all starts with game development.

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