Updated: Social network hi5 expected to raise second round

Social network hi5 is expected to announce a second round of funding for its efforts to become a social gaming destination. (Based on regulatory filings, an earlier version of this story incorrectly reported that hi5 had already raised another $23 million. See update below.)

Last fall, hi5′s growth stalled and the company decided that its salvation lay in a tight focus on social gaming, which would bring in revenue from virtual goods. It hired gaming veteran Alex St. John as its new president and chief technology officer, acquired social game company Big Six, and last month announced a new initiative to recruit game developers. Since his hiring, St. John has argued that hi5′s gaming focus will give it an advantage over bigger competitors like Facebook, whose games strategy he has called “schizophrenic.”

The filings don’t say who’s funding the new round. Hi5 previously raised a $20 million first round, plus $15 million in debt. I’ve emailed the company for comment and will update if I hear back.

Update: Michael Trigg, hi5′s vice president of marketing and development, sent me the following email in response to the earlier version of the story (to be clear, the current version is correct):

The story is incorrect. We did *not* raise an additional $23 million. The only reason this filing was done was for a $3 million convertible from our existing series A investor, Mohr-Davidow.

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