Virtual worlds aren’t exactly fashionable these days. They went through a hype cycle when everyone predicted that we’d all be living virtual lives in online worlds like Second Life.

Virtual worlds have come down to earth, but they’re still getting started.

MiniMonos is the latest example. The Christchurch, New Zealand-based company has raised $800,000 in New Zealand dollars ($550,000 U.S.) for a virtual world for children.

MiniMonos is a virtual island focused on fun and sustainability. Kids can create monkey avatars, explore, chat and play.

The investors include  the Venture Accelerator Nelson (VANL) and the government’s Seed Co-Investment Fund (SCIF, part of NZVIF). It is the first co-investment deal between the two groups.

Previously, MiniMonos raised money from an angel investor.MiniMonos is currently in “open alpha” testing, and it is targeting children (primarily boys) in the US. The company plans to launch its beta test in early April. The founder of MiniMonos is Melissa Clark-Reynolds, a seasoned tech entrepreneur and entrepreneur in residence at Wellington’s incubator, Creative HQ. She is also an amabassador for Al Gore’s The Climate Project. The company will seek more capital later this year.

Clark-Reynolds has been working on the business for two years. Her research showed there was a gap to fill for boys who want to play an online game. The world is a place to explore without the constant pressure to buy things. Children plan in treehouses that require care and nourishment. It embodies core values such as sustainability and generosity, but it doesn’t deliver those values via a boring lecture.