Machinima.com has raised $3.85 million in new financing from MK Capital and a group of private investors to fund business expansion.

The site focuses on user-generated and professional videos, trailers, gameplay, montages and music videos as well as the original Machinima.com series and movies created in World of Warcraft, Halo, Sims 2, GTA, Battlefield, and Counterstrike.

“This funding is an endorsement that Machinima.com as a next-generation online video-programming brand that not only delivers significant reach and video views, but also delivers an extremely high level of user engagement which is the key differentiator for online video brands - embeds, comments, ratings, etc.,” said Allen DeBevoise, Machinima.com chairman and CEO in an article here.

Rated as the ninth most subscribed to YouTube channel, the site serves more than 30 million videos per month and allows its users to watch thousands of videos and learn how to make their own by collaborating with other users on online forums, articles and tutorials on the Machinima 101 channel.

The site also holds UGC contests like its current (yet somewhat out of date) “Sims Bootifal Home” contest which asks its users to create a Halloween home in the Sims game for the chance to win a $200 Amazon gift card.

Funding received will go towards expanding the site which Machinima.com hopes will attract advertisers from the world’s largest technology, gaming and entertainment companies.