Another sign that the online, community-driven stock “market” is heating up, even in the face of real stock market uncertainty: virtual investing social network UpDown has just received $750,000 in additional funding from Swiss investor Joachim Schoss. With this lastest round of funding, UpDown has raised just under $1.2 million in total.

Officially launching last September, UpDown is still very new on the scene. As with most new entrants in a crowding market, UpDown pushes its differentiating factor hard: users can earn money on the site, without putting up any real cash of their own. With $1 million in virtual cash that users start with on UpDown, the group functions along with the trading and analysis functions are very much tied to a competitive spirit with cash rewards.

The setup of UpDown’s community is much like a Fantasy Football site, where users can join with others to reach a common goal, or compete with others on an individual basis. For good investments and solid stock quote analysis, users will be able to get paid for their participation. It’s often a risky model to take, especially with a new startup, but it helps UpDown stand out in a crowded market, as others in this space like SocialPicks are seeing significant funding in order to integrate real life stock experiences as well.

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