Formed by ex-Blizzard developers, Red 5 Studios has managed to raise $18.5 million in funding from Benchmark Capital and Sierra Ventures. Scoop:

“Red 5 is a creative mecca for the world’s best game development talent to realize their own vision,” said Mark Kern, president and CEO of Red 5 Studios. “With the financial backing and operational advice of Benchmark and Sierra, our uniquely talented team will have the resources to create the most exciting massively multiplayer titles for a worldwide audience.”

Benchmark Capital has invested in dozens of successful consumer-technology companies, including Second LifeTM, mobile entertainment leader JAMDAT, and eBay. Sierra focuses on investments across all areas of the information technology sector, and works with entrepreneurs and management teams to originate and build new companies into large, profitable businesses.

“Historically, the winners in the gaming space have been publishers rather than independent studios. However, World of Warcraft® is no ordinary game title and Red 5 is no ordinary team,” said Bill Gurley, general partner, Benchmark Capital. “With the track record, talent and vision behind Red 5, it is positioned to become a unique creative powerhouse in the online games space.”

“Sierra invests in world-changing ideas, and we believe that MMOs are poised to become a dominant form of entertainment on a global scale. Red 5 Studios’ mission is aligned perfectly with our goals of building the premiere independent development studio in the online gaming market,” said Jeff Loomans, partner, Sierra Ventures. “Future MMOs need to combine great gameplay and social networking - giving players the ability to reach beyond borders both virtually and globally, and Red 5 Studios is designing the company and its games around this premise from the beginning.”

Red 5 Studios is already working on a MMO title which is being financed and distributed by Webzen.