Gaia Online, the teen-oriented virtual world and community site, has raised an $11 million third round led by Institutional Venture Partners. The company has disclosed over $21 million previously, not including an unspecified amount from Sony (NYSE: SNE), bringing its total raise to over $32 million. The virtual worlds space has seen plenty of activity lately, including some major exits, though it’s still unclear how things will ultimately shake out. Early leader Second Life seems to have peaked, while Google (NSDQ: GOOG) recently dipped its toes in (how far they’ll go with it remains to be seen). Gaia claims 350,000 unique users daily, and 5 million on a monthly basis. The San Jose-based company has made virtual goods transactions central to its business model. Release.