After all the negative press lately regarding Kleiner Perkins Caufield & Byers neglecting the online industry, it looks like they were working on something big the entire time.  Zynga, the largest social gaming service, announced today that it has completed a new round of funding led by Kleiner Perkins Caufield & Byers along with Institutional Venture Partners (IVP). The $29 million investment also includes funding from previous investors Union Square Ventures, Foundry Group and Avalon Ventures. The funding will be used to accelerate Zynga’s creation of next generation social games.

The company also announced today that Kleiner Perkins partner and former co-founder and chief creative officer of Electronic Arts, Bing Gordon, will take an active director role in building the company. He will join LinkedIn’s chairman Reid Hoffman, Foundry Group’s Brad Feld and Zynga’s CEO Mark Pincus on the company’s board of directors.

In addition, Zynga announced today that is has acquired YoVille, the largest virtual world game on social networks.

“We are excited that Kleiner Perkins and IVP are joining our terrific investor group,” said Pincus. “With this new investment, we are doubling down on social gaming, raising the production quality and scaling the infrastructure. We’re also excited to have Bing, who has been an amazing contributor even before becoming formally involved, join in an even more significant way.”

“Social gaming is one of the most exciting applications of the consumer Internet,” said John Doerr, partner, KPCB. “Zynga gives its millions of customers a new way to make friends and have fun on the web.”

“Mark and the talented team at Zynga have the same kind of vibrant energy we had in the early, industry-defining years of EA,” said Gordon. “But their designs, technologies and approaches are all new, and are further broadening the reach and promise of interactive entertainment.”

“Social gaming, and Zynga in particular, is bringing gaming to the mass market,” said Sandy Miller, partner, IVP.