10 01 05 Web 2.0 Weekly Special Edition

David Shore, CFA, MBA 416.860.6784 [email protected] Damian Wojcichowsky, Associate 416.860.7652

[email protected]

5 J a n u a r y 2 0 1 0

Web 2.0 Weekly – SPECIAL EDITION

2009 Review: A Strong Year for Web 2.0

SOFTWARE AND MEDIA

TOP F I VE DE ALS OF 2 00 9

The Top Five: Despite over 400 transactions in 2009, it wasn’t hard choosing our Top Five transactions for 2009 (with a l i tt le bit of massaging). Our Top Five transactions are: Facebook’s $200 mill ion D round, Twitter’s $100 mil lion E round, the $2.25 bill ion acquisition of Skype, the almost $1 bil lion in f inancing/M&A for Social Gaming companies (including Zynga, Playdom and Playfish), and the incredible per unique visitor value ascribed in the financing for location-based social networking company Gowalla.

• Facebook raises $200 million D round: In May 2009, Facebook announced a new financing round – raising $200 mil lion from Digital Sky Technologies. The transaction gave Digital Sky a 1.96% stake, valuing Facebook at $10 bill ion. This financing brought the company’s total to $678.2 mil lion. This was also the largest financing we recorded in 2009.

• Twitter raises $100 million E round: The third largest financing round in 2009 belonged to Twitter – a $100 mil lion Series E in September 2009. The financing reportedly valued Twitter at $1 bil lion – a remarkable valuation for a company that has not yet formalized a revenue model! More recently, i t has been reported that Twitter was actually profitable in 2009 due to the $25 mill ion in search deals it signed in October with Google and Microsoft.

• Skype is acquired for $2.025 billion: By far the largest overall transaction in our database in 2009 was the acquisition of a majority posit ion (65%) in Skype from eBay for $2.025 bill ion – announced in September 2009. The transaction was completed in November 2009. eBay had purchased Skype for $4.0 bil lion in 2005.

• Social Gaming financing activity reaches ~$1 billion (Zynga, Playfish, Playdom, etc.): Perhaps the hottest sector overall in 2009 was Social Gaming. This segment of the Web 2.0 market had the third highest number of deals (39) and generated almost $1 bill ion in financing/M&A activity – the second highest total overall (Figure 1). Three transactions in particular stand out in the social gaming space – the $400 mill ion acquisit ion of Playfish (by Electronic Arts, November 2009), the $180 mil lion financing of Zynga (Series C, December 2009, by Digital Sky), and the $43 mil lion first round of f inancing for Playdom (New Enterprise lead, November 2009, Series A). There has been much speculation as to how the larger social gaming companies wil l proceed, with potential IPO or further strategic M&A most l ikely.

Financing/M&A (2009)

By S ector/Type

0

500

1,000

1,500

2,000

2,500

SMS/Voice

Gaming

Social Networks

Video

Advertising

Vertical Communities

Microblog

Infrastructure

Virtual World

Mobile

Music

Media

Online Dating

Widget

Collaboration

Comment/Reputation

Search

Social Commerce

Crowdsourced Content

Mobile Ad

Enterprise

Aggregation

Analytics

Blog

Virtual Goods

Online Learning

Financial Services

Wiki

Documents

Advertising/M

obile

Travel

Mobile Payment

Micromedia

Classified

RSS

Location-based SNS

Publishing

Visual Commerce

Internet Retail

SAS

Online Calendar

(US$ mm)

S eries E

S eries D

S eries C

S eries B

S eries A

P IP E

Debt financing

Angel/S eed

Acquis ition

Figure 1. Capital Market Activity, 2009, By Sector Source. Company reports

• Hottest new sector? Location-based social networks (Foursquare, Gowalla, etc.). Unique visitor value

skyrockets: Financing activity for location-based social networks really heated up late in 2009. While the total f inancing raised in 2009 was quite small (~$15 mill ion), the hype surrounding location-based SNS companies was substantial. In our opinion, this was highlighted by the $8.4 mil lion December Series B financing for Gowalla. The reported valuation of $28.4 mill ion implies a value of $568 for each of i ts 50,000 users (Figure 2). That compares to a $40 per user value we estimate for the Foursquare financing in September.

Es timated Value per Unique Vis itor

$568

$200

$113

$88

$48 $42 $40$32 $29 $29 $25 $22 $20 $19 $19 $16

$7 $6 $5 $2

$-

$100

$200

$300

$400

$500

$600

Gowalla

Plaxo

Mint.com

Linkedin

FriendFeed

Twitter

Foursquare

Facebook

Club Penguin

Twitter

Yelp

Bebo

People M

edia

Yelp

MMC (Poynt)

PageOnce

Playfish

Zynga

StumbleUpon

FriendsReunited

Dec-09 May-08 S ep-09 Oct-08 Aug-09 S ep-09 S ep-09 May-09 Aug-07 Feb-09 Feb-08 Mar-08 J ul-09 Dec-09 Dec-09 Dec-09 Nov-09 Dec-09 May-09 Aug-09

($)

S ource : C ompany reports , C ompe te . com

Figure 2. Unique Visitor Value Source. Company reports, RCC estimates, Compete.com

20 09 F I NANCI NG REV IEW

December – the year ends on a high note: Total transaction value in the Web 2.0 universe for December is $449.4 mil lion (Figure 3). The number of financings stands at 34, averaging $13.2 mill ion each. In comparison, total capital raised in November was $204.4 mil lion, averaging $10.8 mil lion (19 deals); October was $176.1 mil lion, averaging $5.9 mil lion (30 deals); and September was $232.8 mil lion, averaging $9.0 mill ion (26 deals).

Financing Activity Last Twelve Months

7.0 6.96.5

6.2

14.2

4.7

5.6

7.4

9.0

5.9

10.8

13.2

6.4

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

(US

$m

)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

(US

$m

)

Total Average*May-09 includes $200m FB investment

Dec-09 includes $180m Zynga investment

Figure 3. Financings, Last Twelve Months Source. Company reports

September was biggest month: September was the biggest month for capital market activity, driven by the acquisition of Skype for $2.025 bil lion (Figure 4). After a slow October, financing/M&A activity picked up in the last two months of the year, with December being the largest month for financing (excluding M&A).

Total Capital Market Activity - Las t Twelve Months

-

500

1,000

1,500

2,000

2,500

3,000

Dec-08 J an-09 F eb-09 Mar-09 Apr-09 May-09 J un-09 J ul-09 Aug-09 S ep-09 Oct-09 Nov-09 Dec-09

S eries E

S eries D

S eries C

S eries B

S eries A

P IP E

Debt financing

Angel/S eed

Acquis ition

Figure 4. Capital Market Activity, by Sector, Last Twelve Months Source. Company reports

$10 billion cumulative: With $2.8 bill ion in financing in 2009, total financing for our Web 2.0 universe is now $9.7 bill ion (Figure 5). The $2.8 bill ion raised in 2009 was down 17.2% from the $3.4 billion raised in 2008.

Web 2.0 F inancing (cumulative)

41.5 24.7

112.859.4 40.1 59.7 43.3

95.9

173.5182.1163.8

240.5262.9

338.7

492.4

1,067.3

950.4

1,431.6

623.0

426.3

658.0713.7

662.0

830.0

-

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2004 2005 2006 2007 2008 2009

(US$m)

-

2 ,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

(US$m)

Figure 5. Web 2.0 Financing, by Quarter, Cumulative Source. Company reports

Smaller deal sizes: Deal size averages fell below long-term historical levels in 2009, with Series A-D rounds all below long-term average levels (Figure 6). However, angel rounds were signif icantly larger than historical levels, averaging $3.0 mil lion in 2009, above the $2.6 mill ion long-term average.

Average financing round size

3.0 2.9

6.5

4.4

7.6

12.9

24.2

28.5

2.6

14.9

6.3 6.2

10.2

22.4

28.4 28.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E

(US

$m

)

LTM Average Size Overall Average

Figure 6. Average Financing Round Size, LTM and Overall Average Source. Company reports

Early rounds dominate: As Figures 7 and 8 show, early rounds (Angel/Series A) dominate our financing landscape, in terms of number of deals with almost 50% of deals. Series C rounds raised the most overall (25.8% of dollars raised), just ahead of Series B (25.2%).

Financ ing by Type - 2009

(# deals )

P IP E

1.6%

S eries A

28.1%

S eries B

26. 2%

Debt financing

2. 5%

S eries C

15.6%

S eries D

6. 0%

S eries E

1. 4%

Angel/S eed

18.6%

Financ ing by Type - 2009

(amount rais ed)

P IP E

1. 4%

S eries A

15. 8%

S eries B

25. 5%

Debt financing

0. 9%

S eries C

25. 6%

S eries D

18. 6%

S eries E

5.0%

Angel/S eed

7.2%

Figures 7 & 8. Capital Market Activity, by Type, Last Twelve Months Source. Company reports

Q4 largest for financing: Figures 9 and 10 show the financing activity by month and quarter for 2009, broken out by early-stage (Angel/Series A), mid-stage (Series B&C), and late-stage (Series D, E, and PIPEs). Q4 was the largest quarter in terms of amount raised, but the second lowest quarter for number of deals.

Financing by Type - 2009

(Amount raised)

75.745.6 47.4

168.7

65.4 49.179.1

193.6

76.138.1

17.5

131.7

49.3 54.9 60.5

164.7

187.1

100.0 103.3

390.3

68.667.6

105.2

241.4

99.8

121.2

80.2

301.1

123.8 96.0

312.4

532.3

19.0

48.2 27.0

94.2

12.0

205.0

5.3

222.3

31.0 63.2

133.1

227.3

2.0 52.5

76.5

131.0

281.8

193.7177.7

653.2

146.0

321.7

189.6

657.3

206.9222.4 230.8

660.0

175.1

203.4

449.4

828.0

-

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

Jan-09 Feb-09 Mar-09 Q1/09 Apr-09 May-09 Jun-09 Q2/09 Jul-09 Aug-09 Sep-09 Q3/09 Oct-09 Nov-09 Dec-09 Q4/09

(US

$m

)

Late Stage (D/E)

Mid-Stage (B/C)

Early Stage (Angel/A)

Total

Figure 9. Capital Market Activity, by Type, Last Twelve Months, Amount Source. Company reports

Financing by Type - 2009

(Number of Deals)

7 7 7

21

1410

22

46

21

13

6

40

16

7

15

3819

9 11

39

8

10

17

35

13

15

14

42

12

9

16

37

2

23

7

22

1

5

3

2

4

9

1

2

3

6

28

18

21

67

2422

40

86

37

30

24

91

29

18

34

81

-

10

20

30

40

50

60

70

80

90

100

Jan-09 Feb-09 Mar-09 Q1/09 Apr-09 May-09 Jun-09 Q2/09 Jul-09 Aug-09 Sep-09 Q3/09 Oct-09 Nov-09 Dec-09 Q4/09

(#)

Late Stage (D/E)

Mid-Stage (B/C)

Early Stage (Angel/A)

Total

Figure 10. Capital Market Activity, by Type, Last Twelve Months, # of Deals Source. Company reports

U.S. dominates financing landscape: Figures 11 and 12 show the financing/M&A activity by country (based on company HQ). The U.S. had the most deals – over 75% of the total (by number of deals).

Financing/M&A by Country - 2009 ($)

UK

7.8%

China

4.4%

USA

46.7%

ROW

2.4%

France

1.3%

Canada

2.0%

Luxembourg

31.2%

Israel

4.1%

Financing/M&A by Country - LTM (#)

China

3.6%

USA

76.2%ROW8.5%

Canada

4.6%

Israel

2.9%

UK

4.1%

Figures 11 & 12. Capital Market Activity, by Geography, Last Twelve Months Source. Company reports

TOP 1 0 L ISTS

Top 10 funded companies: Facebook tops the financing list for 2009, having raised $200 mil lion (Figure 13). Zynga, with its $180 mill ion round late in the year, came in second ($195 mil lion total), followed by Twitter which raised $135.7 mil lion. No other company raised more than $100 mil lion in 2009.

Top 10 Funded Companies - 2009

0.0

50.0

100.0

150.0

200.0

250.0

Facebook Zynga Twitter RockYou Turbine Playdom Youku Zoosk Pandora

Media

ChaCha

(US

$ m

m)

Series E

Series D

Series C

Series B

Series A

Figure 13. Top 10 Financed companies, 2009 Source. Company reports

Top 10 acquirers: As lead investor in the Skype acquisit ion, Silver Lake leads our Top 10 acquirers list for 2009 (Figure 14). Second was Electronic Arts with the $400 mil lion (including earn-outs) acquisit ion of Playfish. One of the last deals announced in 2009 drove O2 to the #3 spot with its $207 mil lion acquisition of JaJah.

Top 10 Acquirers (2009)

By Amount Inves ted

0

500

1000

1500

2000

2500

Silver Lake

Electronic Arts

O2

Intuit

Match.com

KongZhong

Adknowledge

Network

Shanda Interactive

Entertainment Ltd.

ITV

Hi-Media S.A.

(US$ m

m)

Figure 14. Top 10 Acquirers, 2009, Amount invested Source. Company reports

Top 10 lead investors (# deals): Accel Partners was the most active lead investor in 2009, leading nine transactions (Figure 15). Benchmark Capital was second with seven lead investments, followed by Charles River Ventures with six. Four firms were lead on five transactions.

Most Deals (2009)

B y Lead Inves tor

0

1

2

3

4

5

6

7

8

9

10

Accel

P artners

B enchmark

C apita l

C harles R iver

V entures

New

E nterpris e

As s ociates

Draper F isher

J urvetson

C anaan

P artners

Augus t

C apita l

S equoia

C apita l

F irs t R ound

Capita l

B es semer

V enture

P artners

Figure 15. Top 10 Lead Investors, # of Deals Source. Company reports

Top 10 lead investors (amount invested): When analyzing amount invested, Digital Sky Technologies was the largest lead investor in 2009, participating in $380 mil lion of transactions (Figure 16). Insight Venture Partners was second ($100 mil lion), fol lowed closely by Benchmark Capital with $99.4 mil lion.

Top 10 Inves tors (2009)

By Amount Inves ted

380.0

100.0 99.4 91.970.5

52.5 50.0 50.0 49.0 41.0

0

50

100

150

200

250

300

350

400

Digital Sky

Technologies

Insight Venture

Partners

Benchmark Capital

Accel Partners

New Enterprise

Associates

Canaan Partners

Granite Global

Ventures

Softbank

Greylock Partners

Morgenthaler

Ventures

(US$ mm)

Figure 16. Top 10 Lead Investors, Amount Invested Source. Company reports

Top 10 acquisitions: The largest acquisition in 2009 was the $2.025 bill ion acquisit ion of Skype (Figure 17). In second place was the $400 mil lion Playfish acquisit ion, followed by the $207 mil lion JaJah acquisition.

Top 10 Acquisitions - 2009

2025

400

207 17080 80 50 44 42 410

500

1000

1500

2000

2500

Skype PlayFish Jajah Mint Shanghai

Dacheng

Network

People Media Super Rewards Ku6 Friends

Reunited

AdLink Internet

Media

(US

$ m

m)

Figure 17. Top 10 Acquisitions, 2009 Source. Company reports

CAPIT AL M ARKET S ACT IV I TY (P RI CE PE RFO RM ANCE )

Web 2.0 index outpaces NASDAQ in 2009: Our Web 2.0 index (market-cap weighted) essential ly mirrored the performance of the NASDAQ composite index for the first three months of 2009. Since then, the index has diverged in a much stronger recovery relative to the NASDAQ index (Figure 18).

Web 2.0 Index Price Performance

0

50

100

150

200

250

1/5

/09

1/1

9/0

9

2/2

/09

2/1

6/0

9

3/2

/09

3/1

6/0

9

3/3

0/0

9

4/1

3/0

9

4/2

7/0

9

5/1

1/0

9

5/2

5/0

9

6/8

/09

6/2

2/0

9

7/6

/09

7/2

0/0

9

8/3

/09

8/1

7/0

9

8/3

1/0

9

9/1

4/0

9

9/2

8/0

9

10/1

2/0

9

10/2

6/0

9

11/9

/09

11/2

3/0

9

12/7

/09

12/2

1/0

9

Index: Web 2.0 (Market Cap) ^COMP - Share Pricing

Figure 18. Web 2.0 Price Performance Source. Capital IQ

Strong 2009 performance: Fifty-three companies in our universe had positive stock price performances in 2009 (Figure 19), while 27 companies showed negative or f lat returns. The performance for the group was led by Fluid Music Canada, Inc. with a 400% return in 2009, followed by Chinese Gamer International with a 353% return. Twenty-five of the companies saw their stock prices at least double in 2009. The worst performance was by Beyond Commerce, Inc. dropping 98.4% in 2009. BroadWebAsia Inc. also fel l more than 90% (-90.9%).

2009 Price Performance

-98.4%-90.9%-88.0%

-74.4%-64.2%-59.4%-58.0%-55.6%-55.0%-52.2%-50.5%-49.2%-47.9%-45.7%-44.0%-40.5%-40.0%-38.6%

-30.7%-28.0%-26.1%-25.3%-24.2%-20.5%

-14.4%-5.0%

0.0%3.3%4.0%4.4%5.3%9.2%10.4%11.2%13.2%16.1%16.9%17.6%

24.4%28.6%28.8%29.7%33.8%

40.3%42.4%42.6%

50.0%50.0%

57.1%57.7%61.6%65.9%

80.6%82.6%85.7%

103.4%112.6%

121.6%130.1%132.3%

143.7%145.1%

150.3%153.1%155.8%

172.7%179.5%180.0%

184.6%192.3%198.1%200.0%200.0%

221.6%227.3%

235.1%277.2%

353.5%400.0%

181.3%

-200.0% -100.0% 0.0% 100.0% 200.0% 300.0% 400.0% 500.0%

Beyond Commerce, Inc.BroadWebAsia Inc.

CornerWorld CorporationDolphin Digital M edia, Inc.

Wizzard Software CorporationNorthgate Technologies Limited

UOM O M edia, IncDigitalTown, Inc.Worlds.com Inc.

Ngi Group Inc.GigaM edia Ltd.

The9 LimitedBetawave CorporationSNAP Interactive, Inc.NeXplore Corporation

LookSmart, Ltd.GameOn Co Ltd.

Socialwise, Inc.TheStreet.com, Inc.

M agnitude Information Systems Inc.Asknet AG

Ynk Korea Inc.M yriad Group AG

Jumbuck Entertainment LimitedDADA SpA

Lingo M edia CorporationGeoSentric Oyj

SpectrumDNA, Inc.Bright Things plc

Eo lith Co. Ltd.Quepasa Corp.

PNI Digital M edia Inc.HanbitSoft, Inc.

Giant Interactive Group, Inc.XING AG

YD Online Corp.Sohu.com Inc.

Spark Networks, Inc.United Online Inc.

IAC/InterActiveCorp.Open Text Corp.

Bigstring Corp.M ixi, Inc.

NetDragon WebSoft, Inc.ValueClick Inc.

NeuLion IncorporatedExtensions, Inc.

Uniserve Communications Corp.DXN Holdings Bhd

Shanda Interactive Entertainment Ltd.Actoz Soft Co., Ltd.

Changyou.com LimitedCDC Corp.

Netease.com Inc.Accelerize New M edia, Inc.

M odern Times Group M tg ABGree, Inc.

Perfect World Co., Ltd.Kingsoft Co. Ltd.

AQ Interactive, Inc.Shutterfly, Inc.

Tree.Com, Inc.Gamania Digital Entertainment Co., Ltd.

Webzen Inc.GungHo Online Entertainment, Inc.

SK Communications Co., Ltd.OAO RBC Information Systems

Gravity Co., LtdDigitalPost Interactive, Inc.

iseemedia Inc.Cyberplex Inc.

Frogster Interactive Pictures AGM OKO.mobi Limited

VOIS, Inc.Tencent Holdings Ltd.

M ultiplied M edia CorporationOpenwave Systems Inc.

NEOWIZ Games CorporationChinese Gamer International

Fluid M usic Canada, Inc.

Figure 19. 2009 Price Performance Source. Capital IQ

VAL UAT IO N

2009 ends at record high: After bottoming in November 2008 at $28.8 bill ion, the combined market capitalization of the 80 public companies we track hit an all-t ime high at the end of 2009, reaching $77.4 bil lion (Figure 20).

Market Capitalization

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Jan-05

Feb-05

Mar-05

Apr-05

May-05

Jun-05

Jul-05

Aug-05

Sep-05

Oct-05

Nov-05

Dec-05

Jan-06

Feb-06

Mar-06

Apr-06

May-06

Jun-06

Jul-06

Aug-06

Sep-06

Oct-06

Nov-06

Dec-06

Jan-07

Feb-07

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Aug-07

Sep-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

(US$m)

Figure 20. Total Market Capitalization, Monthly Source. Capital IQ

Tencent the gorilla: Tencent Holdings (SEHK:700), with a market cap of approximately US$39.5 bill ion, has driven a large portion of the gains over the last year (Figure 21), rising from a market cap of $9.8 bill ion in November 2008. The other big contributors have been CYOU (+$1.8 bil lion), TSE:3632 (+$2.8 bill ion), MTG.B (+$2.1 bil lion), NTES (+$2.5 bill ion), and SNDA (+$1.9 bill ion).

Market Capitalization

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

Jul-06

Sep-06

Nov-06

Jan-07

Mar-07

May-07

Jul-07

Sep-07

Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09

Nov-09

(US$m)

AC LZ A052790

3838 XTR A:A5A

B S GC BWAV

B YOC AIM:BG T

BWBA CHIN.A

C YOU GT S M:3083

CWR L TS X:CX

CM:DA DXN

DGLP DGTW

DPDM A041060

E XT I T S X:FMN

F R G 6180

3812 GE O1V

GA G IGM

GR V Y TS E :3632

3765 A047080

IAC I IE E

AS X: JMB 3888

T S XV :LM LOOK

MAGY 2121

MTG B MK B

T S XV :MMC MY R N

A095660 777

NTE S TS X:NLN

NXPC 2497

590057 OT E X

OPWV PWR D

T S XV :P N QP S A

R BC I S NDA

S FLY A066270

S TV I S C LW

S OHU LOV

S P XA 700

NCTY TS CM

TR E E TS XV :US S

UNTD UOMO

VCLK VOIS

K OS E :A069080 WZE

WDDD O1B C

A052770 A023770

Figure 21. Market Capitalization, By Company & Month Source. Capital IQ

Online Gaming companies lead market-cap charts: Thirteen companies in our Web 2.0 universe top US$1 bill ion in market capital ization (Figure 22). Forty-six of the 80 companies have market caps under US$100 mil lion, with 28 under US$25 mill ion. Online gaming companies dominate the top of the l ist, led by Tencent Holdings (SEHK:700) with a market cap of approximately US$39.5 bill ion.

Market Cap ($US mm)

1.21.41.52.93.73.73.94.14.24.85.67.68.09.211.211.711.913.313.515.115.916.818.218.720.221.822.424.325.531.232.632.836.440.146.751.353.061.764.172.172.874.074.676.777.994.8101.3104.7114.1128.8136.8178.8179.8193.1193.9205.8232.1237.5260.7275.4311.5463.7561.6618.6734.8869.9905.91107.41217.01594.31838.11980.32209.92289.12733.12763.03266.23549.74888.439524.0

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000

Beyond Commerce, Inc .Unis erve Communications Corp.

B igs tring Corp.CornerWorld CorporationBetaw ave Corporation

UOMO Media, IncDigita lPos t Interactive, Inc .

S NAP Interactive, Inc .B roadWebA s ia Inc .

Worlds .com Inc.B right Things plc

S pectrumDNA , Inc .Magnitude Information S ys tems Inc .

is eemedia Inc .L ingo Media CorporationDolphin Digital Media, Inc .

V OIS , Inc .Ex tens ions , Inc .

Jumbuck Enterta inment LimitedY nk Korea Inc .

MOKO.mobi L imitedLookSmart, L td.

Wiz z ard S oftw are CorporationAcceleriz e New Media, Inc .

Northgate Technologies L imitedA s knet AG

Multiplied Media CorporationS ocialw is e, Inc .Quepas a Corp.

NeXplore CorporationNgi Group Inc .

Digita lTow n, Inc .DXN Holdings BhdAQ Interactive, Inc .

Grav ity Co. , L tdGeoS entric Oy j

PNI Digita l Media Inc .S park Netw orks , Inc .

Frogs ter Interactive Pictures AGHanbitS of t, Inc .

TheS treet.com, Inc .NeuLion Incorporated

Cyberplex Inc .GameOn Co Ltd.

Eolith Co. L td.Y D Online Corp.Tree.Com, Inc .

Fluid Mus ic Canada, Inc .Webzen Inc .

A ctoz S oft Co. , L td.DADA S pA

GigaMedia L td.The9 Limited

Openw ave S ys tems Inc .OAO RBC Information S ys tems

Myriad Group AGXING AG

CDC Corp.Gamania Digita l Enterta inment Co. , L td.

NetDragon WebS of t, Inc .GungHo Online Entertainment, Inc .

S hutterf ly , Inc .S K Communications Co. , L td.

United Online Inc .NEOWIZ Games Corporation

V alueClick Inc .K ings of t Co. L td.

Chines e Gamer InternationalMix i, Inc .

G iant Interactive Group, Inc .Changyou.com LimitedPerfect World Co. , L td.

S ohu.com Inc.Open Text Corp.

IAC/InterActiveCorp.Gree, Inc .

Modern Times Group Mtg A BS handa Interactive Entertainment L td.

Neteas e.com Inc.Tencent Holdings L td.

Figure 22. Market Cap Rankin Source. Capital IQ

TEV/Revenue (LTM) averages 2.47x: The overall median TEV/Revenue (LTM) multiple for our group is 2.47x (Figure 23). The multiple at year-end dropped slightly from 2.53x at the end of November. The average multiple troughed in October 2008 at just 1.40x and peaked at 4.49x in January 2007. Note that we exclude multiples greater than 100x.

EV / R evenue

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

Jul-06

Sep-06

Nov-06

Jan-07

Mar-07

May-07

Jul-07

Sep-07

Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09

Nov-09

Multiple (x)

0

10

20

30

40

50

60

70

80

Companies (#)

Median Count

Figure 23. TEV/Revenue, By Month Source. Capital IQ

TEV/Revenue (LTM) by company: Three companies trade above 25x revenue – Tencent Holdings Ltd. (27.4x), Bigstring Corp. (40.4x), and Dolphin Digital Media, Inc. (42.1x) (Figure 24). Twenty-one companies have multiples under 1.0x.

TEV/LTM R evenue (x)

0.0 0.1 0.1 0.1 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.6 0.6 0.6 0.7 0.8 0.8 0.8 0.9 1.0 1.0 1.2 1.2 1.3 1.3 1.6 1.6 1.7 1.9 2.0 2.2 2.3 2.3 2.4 2.8 2.9 2.9 3.2 3.3 3.4 3.85.1 5.1 5.2 5.7 6.0 6.0

6.78.1 8.1

12.013.113.2

14.9

17.6

20.721.0

27.4

40.442.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

GameOn Co Ltd.

Asknet AG

TheStreet.com, Inc.

Betawave Corporation

AQ Interactive, Inc.

Tree.Com, Inc.

Perfect World Co., Ltd.

Uniserve Communications Corp.

Jumbuck Entertainment Limited

Northgate Technologies Limited

Openwave Systems Inc.

Cyberplex Inc.

GigaMedia Ltd.

CDC Corp.

DXN Holdings Bhd

Actoz Soft Co., Ltd.

SNAP Interactive, Inc.

DADA SpA

IAC/InterActiveCorp.

United Online Inc.

Beyond Commerce, Inc.

HanbitSoft, Inc.

Ynk Korea Inc.

Spark Networks, Inc.

ValueClick Inc.

NetDragon W

ebSoft, Inc.

Gamania Digital Entertainment Co., Ltd.

Shutterfly, Inc.

YD Online Corp.

CornerW

orld Corporation

Modern Times Group Mtg AB

PNI Digital M

edia Inc.

Webzen Inc.

GungHo Online Entertainment, Inc.

NeuLion Incorporated

SK Communications Co., Ltd.

Open Text Corp.

XING AG

Myriad Group AG

Sohu.com Inc.

NEOWIZ Games Corporation

Wizzard Software Corporation

DigitalPost Interactive, Inc.

iseemedia Inc.

UOMO Media, Inc

Accelerize New Media, Inc.

Changyou.com Limited

Kingsoft Co. Ltd.

Frogster Interactive Pictures AG

Lingo Media Corporation

Mixi, Inc.

GeoSentric Oyj

Gree, Inc.

Eolith Co. Ltd.

Chinese Gamer International

Fluid Music Canada, Inc.

NeXplore Corporation

MOKO.mobi Limited

Tencent Holdings Ltd.

Bigstring Corp.

Dolphin Digital M

edia, Inc.

Figure 24. TEV/Revenue Ranking Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed or domiciled. Figure 25 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest number of companies (16), trading at an average multiple of 11.4x. On a geographic basis, the United States has the most companies (29), trading at an average of 7.7x revenue (Figure 26).

Average TEV/LTM Revenue - By Exchange

0.00.20.4

0.60.81.72.02.32.53.23.23.33.95.46.88.2

10.711.4

11.612.0

20.7

0.0

5.0

10.0

15.0

20.0

25.0

OT

CP

K

HLS

E

SE

HK

OT

CB

B

AS

X

GT

SM

TS

X

TS

E

TS

XV

KO

SE

XT

RA

SW

X

AM

EX

OS

E

OM

NasdaqG

S

CM

KLS

E

BS

E

NasdaqG

M

RT

S

3 1 3 16 2 2 3 5 5 8 3 1 2 1 1 14 1 1 1 4 1

(x)

# Companies

Average TEV/LTM Revenue - By Country

0.00.6 0.4

0.60.82.0

3.23.2

3.33.34.8

5.77.4

7.7

10.7

12.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

Fin

land

Austr

alia

Unite

d

Sta

tes

Chin

a

Taiw

an

Japan

Canada

South

Kore

a

Germ

any

Sw

itzerland

Sw

eden

Italy

Mala

ysia

Hong K

ong

India

Russia

1 2 29 10 3 6 9 9 3 1 1 1 1 1 1 1

(x)

# Companies

Figures 25 & 26. TEV/Revenue Ranking (Exchange, Country) Source. Capital IQ

TEV/EBITDA (LTM) averages 11.6x: The median multiple for the 41 companies with posit ive EBITDA (and multiples under 100x) is 10.75x LTM EBITDA (Figure 27). The median multiple has risen sl ightly from 10.50x at the end of November but is sti ll well below the peak of 23.7x in Apri l 2006. The median is up signif icantly from the recent trough levels around 5.5x.

EV / EB ITDA

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

Jul-06

Sep-06

Nov-06

Jan-07

Mar-07

May-07

Jul-07

Sep-07

Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09

Nov-09

Multiple (x)

0

5

10

15

20

25

30

35

40

45

Companies (#)

Median C ount

Figure 27. TEV/EBITDA , By month Source. Capital IQ

TEV/EBITDA (LTM) by company: Uniserve Communications Corp. (40.2x) and SK Communications Co., Ltd. (43.7x) have the highest multiples in the group (Figure 28). Fourteen companies have EBITDA multiples under 7x.

TEV/LTM EB ITDA (x)

0.2 0.3 0.7 1.03.4 4.1 4.2 4.4 4.5 4.8 5.0 5.4 5.8 6.0

7.6 7.8 8.09.4 9.7 10.3 10.5 10.8 11.0 11.2

12.7 12.8 13.0 13.213.8 14.2

14.9

21.022.6

24.525.7

27.7

40.2

43.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

GameOn Co Ltd.

OAO RBC Inform

ation Systems




United Online Inc.

TheStreet.com, Inc.

NetDragon W

ebSoft, Inc.

Cyberplex Inc.


AQ Interactive, Inc.

ValueClick Inc.


DADA SpA

Sohu.com Inc.

Tree.Com, Inc.

YD Online Corp.



CDC Corp.


XING AG

Ynk Korea Inc.

Open Text Corp.


PNI Digital M

edia Inc.

Shutterfly, Inc.



Openwave Systems Inc.

Kingsoft Co. Ltd.

Webzen Inc.

Gree, Inc.

Mixi, Inc.


Eolith Co. Ltd.

Uniserve Communications Corp.

SK Communications Co., Ltd.

Figure 28. TEV/EBITDA Ranking Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 29 shows the average TEV/EBITDA multiples by stock exchange. The OTCBB has the largest number of companies (14), trading at an average multiple of 4.8x. On a geographic basis, the U.S. has the most companies (29), trading at an average of 8.1x EBITDA (Figure 30).

Average TEV/LTM EBITDA - By Exchange

0.31.0

4.54.85.86.06.08.99.710.510.8

13.113.817.618.2

26.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

TS

XV

KO

SE

GT

SM

OM

TS

E

XT

RA

OS

E

SE

HK

NasdaqG

S

NasdaqG

M

CM

AM

EX

OT

CB

B

TS

X

AS

X

RT

S

5 8 2 1 5 3 1 3 14 4 1 2 16 3 2 1

(x)

# Companies

Average TEV/LTM EBITDA - By Country

0.3

1.0

6.0

7.58.110.310.8

12.613.8

17.2

17.6

18.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

South

Kore

a

Ta

iwan

Ca

nada

Sw

eden

Japan

Germ

any

Hong

Kong

Unite

d

Sta

tes

Chin

a

Italy

Aus

tralia

Ru

ssia

9 3 9 1 6 3 1 29 10 1 2 1

(x)

# Companies

Figures 29 & 30. TEV/EBITDA Ranking (Exchange, Country) Source. Capital IQ

P/E (LTM) averages 21.0x: The median multiple for the 32 companies with posit ive earnings (and multiples under 100x) is 17.7x LTM EPS (Figure 31). This is up from 16.0x at the end of November and well above the 8.8x trough multiple in November 2008. The peak multiple was 37.4x in Apri l 2006.

P / E

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

40.0x

Jan-05

Mar-05

May-05

Jul-05

Sep-05

Nov-05

Jan-06

Mar-06

May-06

Jul-06

Sep-06

Nov-06

Jan-07

Mar-07

May-07

Jul-07

Sep-07

Nov-07

Jan-08

Mar-08

May-08

Jul-08

Sep-08

Nov-08

Jan-09

Mar-09

May-09

Jul-09

Sep-09

Nov-09

Multiple (x)

0

5

10

15

20

25

30

35

40

Companies (#)

Median C ount

Figure 31. P/E, By Month Source. Capital IQ

P/E (LTM) by company: Five companies have multiples greater than 50x – GungHo Online Entertainment, Inc. (60.6x), Webzen Inc. (61.4x), Mixi, Inc. (63.1x), Tencent Holdings Ltd. (68.6x), and HanbitSoft, Inc. (70.0x) (Figure 32). Four companies have P/E multiples under 10x.

P/E LTM (x)

1.7 2.0 2.3 2.4 2.6 3.8 5.3 6.5 7.1 8.09.8

11.6 12.4 13.4 13.5

17.9 18.119.9 20.5

22.8

27.331.4

33.737.3

48.5 49.9

60.6 61.463.1

68.6 70.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Giant Interactive Group, Inc.

The9 Limited

Shanda Interactive Entertainment Ltd.


Netease.com Inc.


DXN Holdings Bhd

Cyberplex Inc.

GigaMedia Ltd.

GameOn Co Ltd.

YD Online Corp.



NetDragon W

ebSoft, Inc.

Sohu.com Inc.



Kingsoft Co. Ltd.




XING AG



Gree, Inc.

Open Text Corp.


Webzen Inc.

Mixi, Inc.

Tencent Holdings Ltd.

HanbitSoft, Inc.

Figure 32. P/E Ranking Source. Capital IQ

P/E (LTM) by country/exchange: Figure 33 shows the average P/E multiples by stock exchange. The OTCBB has the largest number of companies (16), trading at an average multiple of 22.8x. On a geographic basis, the U.S. has the most companies (29), trading at an average of 18.3x earnings (Figure 34).

Average P/E - By Exchange

0.0 0.01.7

3.85.36.511.6

18.120.522.8

30.531.434.0

39.339.8

60.6

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

OS

E

TS

E

KO

SE

SE

HK

XT

RA

GT

SM

OT

CB

B

AM

EX

OM

NasdaqG

S

TS

X

KLS

E

AS

X

NY

SE

NasdaqG

M

SW

X

1 5 8 3 3 2 16 2 1 14 3 1 2 1 4 1

(x)

# Companies

Average P/E - By Country

3.85.3

13.918.118.3

22.7

28.231.432.7

45.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Japan

South

Kore

a

Germ

any

Canada

Taiw

an

Unite

d

Sta

tes

Sw

eden

Chin

a

Mala

ysia

Austr

alia

6 9 3 9 3 29 1 10 1 2

(x)

# Companies

Figures 33 & 34. P/E Ranking (Exchange, Country) Source. Capital IQ

THE WE B 2 . 0 UNI VE RSE

Eighty public Web 2.0 companies: Our Web 2.0 universe contains 80 companies, with a combined market cap of approximately $77.3 bil lion (Figure 35). The median market cap for the group is $72.4 mill ion, with average trail ing revenue of $176.5 mill ion (median $59 mil lion). The companies are also generally profitable with a median EBITDA margin of 15.6%. On a valuation basis, the overall average is 5.4x trail ing revenue (median 1.9x) and 11.7x trai ling EBITDA (median 10.0x). Twenty of the companies have more than 500 employees.

Comparable Company Analys is > Web 2.0

Company Name LTM as of Ticker E xchange

Trading

Currency HQ

Current

Price

USD Market

Cap ($m)

USD LTM Total

R ev ($m)

USD LTM Total

E B ITDA ($m)

EB ITDA

%

TEV/LTM

Revenue

TEV/LTM

E B ITDA Employees

Accelerize New Media , Inc. 9/30/2009 AC LZ OTCB B US D United S tates 0.65 18.7 4.1 (1 .5) -36.5% 5.7x - 11

Actoz S oft C o. , L td. 9/30/2009 A052790 K OS E K R W S outh K orea 17,050 128.8 118.8 26.4 22.2% 0.7x 3.4x NA

AQ Interactive, Inc. 9/30/2009 3838 T S E J P Y J apan 68,300 40.1 71.4 3 .6 5.1% 0.3x 5.0x NA

Asknet AG 9/30/2009 XT R A:A5A XT R A E UR Germany 3 21.8 101.1 (2 .3) -2.3% 0.1x - NA

B igs tring C orp. 9/30/2009 B S GC OTCB B US D United S tates 0.02 1.5 0.1 (1 .0) NM 40.4x - 4

B etawave C orpora tion 9/30/2009 BWAV OTCB B US D United S tates 0.13 3.7 8.4 (14.3) NM 0.1x - 48

B eyond C ommerce, Inc. 9/30/2009 B YOC OTCB B US D United S tates 0.02 1.2 13.5 (12.4) -91.9% 1.0x - 86

B right T hings plc 3/31/2009 AIM:B G T AIM GB P United K ingdom 0.01 5.6 0.0 (2 .7) NM - - NA

B roadW ebAs ia Inc. 9/30/2008 BWBA OTCP K US D United S tates 0.05 4.2 0.0 (4 .6) NM - - 46

CDC C orp. 9/30/2009 CHIN.A NasdaqG S US D Hong K ong 2.24 237.5 334.2 20.0 6.0% 0.6x 10.3x 2,227

C hangyou.com L imited 9/30/2009 C YOU NasdaqG S US D China 33.42 1,838.1 255.3 157.4 61.7% 6.0x 9.7x 628

C hinese G amer Interna tional 9/30/2009 G T S M:3083 G T S M TWD T a iwan 424.00 1,107.4 68.8 39.9 58.0% 14.9x 25.7x NA

C ornerWorld C orporation 7/31/2009 CWR L OTCB B US D United S tates 0.03 2.9 6.8 NM NM 1.9x - 16

C yberplex Inc. 9/30/2009 T S X:C X T S X CAD C anada 1 74.6 109.0 12.1 11.1% 0.5x 4.5x NA

DADA S pA 6/30/2009 CM:DA CM E UR Ita ly 5.91 136.8 236.1 31.0 13.1% 0.8x 6.0x NA

DXN Holdings B hd 8/31/2009 DXN K LS E MYR Malays ia 0.55 36.4 78.5 (85.2) NM 0.6x - NA

Digita lP os t Interactive, Inc. 9/30/2009 DGLP OTC B B US D United S tates 0 3.9 1.2 (0 .9) -73.8% 5.1x - 7

Digita lT own, Inc. 8/31/2009 DGTW OTCB B US D United S tates 1.20 32.8 0.0 (1 .8) NM - - 3

Dolphin Digita l Media , Inc. 9/30/2009 DPDM OTCB B US D United S tates 0.21 11.7 0.3 (4 .6) NM 42.1x - NA

E olith C o. Ltd. 9/30/2009 A041060 K OS E K R W S outh K orea 595.00 77.9 5.9 2 .8 47.6% 13.2x 27.7x NA

E xtens ions , Inc. 9/30/2009 E XT I OT C P K US D United S tates 0.30 13.3 0.0 NM NM - - 2

F luid Mus ic C anada, Inc. 9/30/2009 T S X:FMN T S X CAD United S tates 1.75 104.7 5.6 (3 .0) -54.0% 17.6x - NA

F rogs ter Interactive P ictures AG 6/30/2009 FR G XT R A E UR Germany 17.50 64.1 9.4 (4 .4) -47.0% 6.7x - NA

G amania Digita l E nterta inment C o. , L td. 9/30/2009 6180 G T S M TWD T a iwan 55 260.7 152.2 25.1 16.5% 1.6x 9.4x NA

G ameOn C o L td. 9/30/2009 3812 T S E J P Y J apan 73500.00 76.7 76.5 18.0 23.5% 0.0x 0.2x NA

G eoS entric Oyj 9/30/2009 G E O1V HLS E E UR F inland 0.04 51.3 4.5 (18.5) NM 12.0x - 118

G iant Interactive G roup, Inc. 9/30/2009 GA NY S E US D China 7.04 1,594.3 202.3 137.9 68.2% - - 1,570

G igaMedia Ltd. 3/31/2009 G IGM NasdaqG S US D T a iwan 3.28 178.8 183.6 NM NM 0.6x - 751

G ravity C o. , L td 9/30/2009 GR V Y NasdaqGM US D S outh K orea 2 46.7 51.2 18.1 35.4% - - 469

G ree, Inc. 9/30/2009 T S E :3632 T S E J P Y J apan 5720.00 2,763.0 202.9 117.9 58.1% 13.1x 22.6x NA

G ungHo Online E nterta inment, Inc. 9/30/2009 3765 OS E J P Y J apan 252000 311.5 116.4 25.9 22.3% 2.3x 10.5x NA

HanbitS oft, Inc. 9/30/2009 A047080 K OS E K R W S outh K orea 3830.00 72.1 59.1 (0 .3) -0.6% 1.0x - NA

IAC /InterActiveC orp. 9/30/2009 IAC I NasdaqG S US D United S tates 20.71 2,733.1 1,359.6 82.4 6.1% 0.8x 13.2x 3,200

is eemedia Inc. 9/30/2009 IE E T S XV CAD C anada 0 9 .2 1.9 (4 .2) NM 5.1x - NA

J umbuck E nterta inment L imited 6/30/2009 AS X: JMB AS X AUD Aus tra lia 0 13.5 17.1 7 .3 42.8% 0.4x 1.0x 79

K ingsoft C o. Ltd. 9/30/2009 3888 S E HK HK D China 6 905.9 143.5 57.7 40.2% 6.0x 14.9x 2,271

L ingo Media C orpora tion 9/30/2009 T S XV :LM T S XV CAD C anada 0.95 11.2 1.4 (2 .3) NM 8.1x - NA

LookS mart, Ltd. 9/30/2009 LOOK NasdaqGM US D United S tates 0.98 16.8 54.0 (4 .5) -8.4% - - 90

Magnitude Information S ys tems Inc. 9/30/2009 MAGY OTCB B US D United S tates 0.02 8.0 0.1 (2 .3) NM - - 14

Mixi, Inc. 9/30/2009 2121 T S E J P Y J apan 732,000 1,217.0 134.7 44.5 33.0% 8.1x 24.5x NA

Modern T imes G roup Mtg AB 9/30/2009 MTG B OM S E K S weden 356 3,266.2 1,942.0 274.4 14.1% 2.0x 13.8x 2,969

MOKO.mobi L imited 6/30/2009 MK B AS X AUD Aus tra lia 0.15 15.9 0.7 (2 .5) NM 21.0x - NA

Multiplied Media C orporation 9/30/2009 T S XV :MMC T S XV CAD C anada 0.18 22.4 0.2 (4 .7) NM - - NA

Myriad G roup AG 6/30/2009 MY R N S W X CHF S witzerland 4.85 205.8 63.0 3 .4 5.4% 3.2x - 405

NE OW IZ G ames C orporation 12/31/2008 A095660 K OS E K R W S outh K orea 40550.00 734.8 212.7 57.1 26.8% 3.4x 12.7x NA

NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D China 4.04 275.4 91.4 27.8 30.4% 1.3x 4.4x 2,426

Netease.com Inc. 9/30/2009 NT E S NasdaqG S US D China 37.77 4,888.4 483.1 291.9 60.4% - - 3,109

NeuLion Incorporated 9/30/2009 T S X:NLN T S X CAD C anada 0.67 74.0 24.9 (16.1) -64.5% 2.4x - 237

NeXplore C orporation 6/30/2009 NXPC OTCP K US D United S tates 0.56 31.2 1.7 (13.3) NM 20.7x - NA

Ngi G roup Inc. 9/30/2009 2497 T S E J P Y J apan 24400.00 32.6 78.8 3 .1 3.9% - - NA

Northgate T echnologies L imited 9/30/2009 590057 B S E INR India 27 20.2 47.7 (51.2) NM 0.4x - NA

Open T ext C orp. 9/30/2009 OT E X NasdaqG S US D C anada 40.60 2,289.1 814.5 211.1 25.9% 2.9x 11.2x 3,900

Openwave S ys tems Inc. 9/30/2009 OPWV NasdaqG S US D United S tates 2.31 193.1 190.5 6 .2 3.3% 0.5x 14.2x 590

P erfect W orld C o. , L td. 9/30/2009 PWR D NasdaqG S US D China 40 1,980.3 286.2 157.4 55.0% 0.4x 0.7x 2,096

P NI Digita l Media Inc. 9/30/2009 T S XV :P N T S XV CAD C anada 1.66 53.0 23.2 3 .9 17.0% 2.2x 12.8x NA

Quepasa C orp. 9/30/2009 QP S A OTCB B US D United S tates 2.00 25.5 0.2 (9 .8) NM - - 74

OAO R B C Information S ys tems 12/31/2007 R B C I R T S US D R uss ia 1.40 193.9 156.3 20.4 13.1% 0.0x 0.3x NA

S handa Interactive E nterta inment Ltd. 9/30/2009 S NDA NasdaqG S US D China 52.78 3,549.7 694.6 317.3 45.7% - - 3,124

S hutterfly, Inc. 9/30/2009 S FLY NasdaqG S US D United S tates 18.06 463.7 223.1 27.0 12.1% 1.6x 13.0x 514

S K C ommunications C o. , L td. 12/31/2008 A066270 K OS E K R W S outh K orea 15600.00 561.6 197.7 12.9 6.5% 2.8x 43.7x NA

S NAP Interactive, Inc. 9/30/2009 S T V I OT C B B US D United S tates 0 4 .1 3.4 0 .5 15.6% 0.8x 4.8x 11

S ocia lwise, Inc. 6/30/2009 S C LW OTCB B US D United S tates 0.51 24.3 0.0 (5 .6) NM - - NA

S ohu.com Inc. 9/30/2009 S OHU NasdaqG S US D China 57.46 2,209.9 501.0 218.4 43.6% 3.3x 7.6x 3,197

S park Networks , Inc. 9/30/2009 LOV AME X US D United S tates 3.00 61.7 47.5 10.0 21.0% 1.2x 5.8x 183

S pectrumDNA, Inc. 9/30/2009 S P XA OTCB B US D United S tates 0.16 7.6 0.1 (2 .5) NM - - 7

T encent Holdings L td. 9/30/2009 700 S E HK HK D China 169 39,524.0 1,589.0 811.6 51.1% 27.4x - 6,194

T he9 L imited 12/31/2008 NC T Y NasdaqG S US D China 7.16 179.8 250.7 85.5 34.1% - - 1,626

T heS treet. com, Inc. 3/31/2009 T S CM NasdaqGM US D United S tates 2 72.8 67.0 1 .9 2.9% 0.1x 4.2x 310

T ree.C om, Inc. 9/30/2009 T R E E NasdaqGM US D United S tates 9.29 101.3 217.1 9 .7 4.5% 0.3x 7.8x 700

Unis erve C ommunications Corp. 8/31/2009 T S XV :US S T S XV CAD C anada 0.06 1.4 16.6 0 .2 0.9% 0.4x 40.2x NA

United Online Inc. 9/30/2009 UNTD NasdaqG S US D United S tates 7 618.6 996.8 212.9 21.4% 0.9x 4.1x 1,469

UOMO Media , Inc 7/31/2009 UOMO OTCB B US D C anada 0 3 .7 0.8 (0 .4) -54.2% 5.2x - NA

V alueC lick Inc. 9/30/2009 V C LK NasdaqG S US D United S tates 10 869.9 545.7 130.8 24.0% 1.3x 5.4x 1,189

V OIS , Inc. 6/30/2009 VOIS OTC B B US D United S tates 0.01 11.9 0.0 (1 .0) NM - - 4

W ebzen Inc. 9/30/2009 K OS E :A069080 K OS E K R W S outh K orea 11200.00 114.1 23.6 2 .6 11.0% 2.3x 21.0x 328

W izzard S oftware C orpora tion 9/30/2009 W ZE AME X US D United S tates 0.34 18.2 5.2 (3 .9) -76.4% 3.8x - 110

W orlds . com Inc. 9/30/2009 WDDD OTCB B US D United S tates 0.09 4.8 0.1 (0 .6) NM - - 1

XING AG 9/30/2009 O1B C XT R A E UR Germany 30.80 232.1 61.0 16.5 27.0% 2.9x 10.8x 266

YD Online C orp. 12/31/2007 A052770 K OS E K R W S outh K orea 7350.00 94.8 58.9 12.7 21.6% 1.7x 8.0x NA

Y nk K orea Inc. 12/31/2008 A023770 K OS E K R W S outh K orea 3290 15.1 12.2 1 .3 10.5% 1.2x 11.0x NA

High 39,524.0 1,942.0 811.6 68.2% 42.1x 43.7x 6,194

Low 1.2 0.0 -85.2 -91.9% 0.0x 0.2x 1

Average 966.1 176.5 45.1 11.8% 5.4x 11.7x 1,015Median 72.4 59.0 3.4 15.6% 1.9x 10.0x 319

Figure 35. Web 2.0 Universe Summary Source. Capital IQ

Comparable Company Analys is > Web 2.0

Price Performance

Company Name Currency Ticker E xchange USD Market Cap ($m) Current Price 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week

Accelerize New Media, Inc. US D AC LZ OTC B B 18.7 0.65 0.0% -11.0% 0.0% 62.5% 85.7% -18.8%

Actoz S oft C o. , L td. K R W A052790 K OS E 128.8 17,050 -6.8% -22.0% -5.3% -33.8% 61.6% -52.6%

AQ Interactive, Inc. J P Y 3838 T S E 40.1 68,300 50.8% 68.9% 34.2% -1.7% 132.3% -17.7%

Asknet AG E UR XTR A:A5A XT R A 21.8 3.03 -3.8% -16.1% -2.3% -3.5% -26.1% -26.5%

B igs tring Corp. US D B S GC OTC B B 1.5 0.02 20.6% -17.2% -33.3% -29.4% 29.7% -57.9%

B etawave C orporation US D BWAV OTC B B 3.7 0.13 4.2% 56.3% 56.3% 56.3% -47.9% -47.9%

B eyond Commerce, Inc. US D B YOC OTC B B 1.2 0.02 0.0% -50.0% -85.2% -94.9% -98.4% -98.9%

B right T hings plc G B P AIM:BG T AIM 5.6 0.01 13.0% 6.1% 3.8% -13.3% 4.0% -47.4%

B roadW ebAs ia Inc. US D BW BA OTC P K 4.2 0.05 -44.4% -44.4% -78.3% -78.3% -90.9% -97.5%

CDC C orp. US D CHIN.A NasdaqG S 237.5 2.24 -2.6% -8.9% -9.3% 48.3% 80.6% -42.9%

C hangyou.com L imited US D CYOU NasdaqG S 1,838.1 33.42 -0.2% 1.2% 2.7% -16.0% NM -30.9%

C hines e Gamer International TWD GT S M:3083 G T S M 1,107.4 424.00 3.4% -1.6% -9.8% -4.3% 353.5% -18.3%

C ornerW orld C orpora tion US D CW R L OTC B B 2.9 0.03 0.0% -40.0% -50.0% -50.0% -88.0% -92.7%

C yberplex Inc. C AD T S X:CX T S X 74.6 1.14 -0.9% -7.3% -12.3% -30.9% 192.3% -42.7%

DADA S pA E UR CM:DA CM 136.8 5.91 1.1% -5.9% -14.8% -8.0% -14.4% -27.9%

DXN Holdings B hd MYR DXN K LS E 36.4 0.55 -1.8% -1.8% -8.3% 48.6% 57.1% -20.3%

DigitalP os t Interactive, Inc. US D DG LP OTC B B 3.9 0.05 -8.2% -15.1% -19.6% 28.6% 181.3% -54.5%

DigitalT own, Inc. US D DG TW OTC B B 32.8 1.20 18.8% -14.3% -40.0% -41.5% -55.6% -65.7%

Dolphin Digital Media, Inc. US D DP DM OTC B B 11.7 0.21 -2.4% -26.8% -48.8% -57.3% -74.4% -74.4%

E olith C o. Ltd. K R W A041060 K OS E 77.9 595.00 4.4% 6.3% -18.5% -20.1% 4.4% -48.7%

E xtens ions , Inc. US D E XT I OTC P K 13.3 0.30 -33.3% 0.0% 25.0% 200.0% 50.0% -70.3%

F luid Mus ic C anada , Inc. C AD T S X:FMN T S X 104.7 1.75 1.2% -12.5% 25.0% 150.0% 400.0% -18.6%

F rogs ter Interactive P ictures AG E UR FR G XT R A 64.1 17.50 0.3% -1.4% -2.7% 54.9% 198.1% -18.6%

G amania Digita l E nterta inment C o. , Ltd. TW D 6180 G T S M 260.7 54.70 8.7% 18.8% 14.3% -7.3% 150.3% -20.5%

G ameOn Co Ltd. J P Y 3812 T S E 76.7 73,500.00 11.5% 17.8% -17.5% -32.9% -40.0% -44.7%

G eoS entric Oyj E UR GE O1V HLS E 51.3 0.04 -20.0% 0.0% -20.0% 0.0% 0.0% -33.3%

G iant Interactive G roup, Inc. US D GA NYS E 1,594.3 7.04 0.4% -1.4% 6.8% -11.3% 11.2% -26.4%

G igaMedia Ltd. US D G IGM NasdaqG S 178.8 3.28 3.1% -17.6% -29.9% -41.5% -50.5% -57.6%

G ravity Co. , L td US D GR V Y NasdaqGM 46.7 2 17.5% 12.8% -5.6% 52.7% 180.0% -36.1%

G ree, Inc. J P Y T S E :3632 T S E 2,763.0 5, 720.00 3.8% 24.3% 19.2% 59.8% 112.6% -5.0%

GungHo Online E nterta inment, Inc. J P Y 3765 OS E 311.5 252,000.00 60.0% 71.8% 9.6% 0.0% 155.8% -10.0%

HanbitS oft, Inc. K R W A047080 K OS E 72.1 3, 830.00 -4.4% 4.4% -7.9% -18.1% 10.4% -42.3%

IAC /InterActiveC orp. US D IAC I NasdaqG S 2,733.1 20.71 4.6% 6.6% 8.0% 28.8% 28.6% -2.7%

is eemedia Inc. C AD IE E T S XV 9.2 0 0.0% -5.1% 42.3% 117.6% 184.6% -31.5%

J umbuck E nterta inment L imited AUD AS X:JMB AS X 13.5 0 3.3% -6.1% -20.5% -20.5% -20.5% -38.0%

K ingsoft C o. Ltd. HKD 3888 S E HK 905.9 6 4.6% 10.3% -7.1% 12.2% 130.1% -32.2%

L ingo Media C orpora tion C AD T S XV :LM T S XV 11.2 0.95 0.0% -1.0% -5.0% -20.8% -5. 0% -33.6%

LookS mart, L td. US D LOOK NasdaqGM 16.8 0.98 -5.7% -8.3% -14.7% -18.2% -40.5% -45.0%

Magnitude Information S ys tems Inc. US D MAGY OTC B B 8.0 0.02 -5.3% -5.3% 100.0% 93.5% -28.0% -53.8%

Mixi, Inc. J P Y 2121 T S E 1,217.0 732,000.00 -5.5% 4.6% 25.6% 28.9% 33.8% -15.4%

Modern T imes G roup Mtg AB S E K MTG B OM 3,266.2 355.90 3.7% 14.8% 19.4% 54.4% 103.4% -0.1%

MOKO.mobi L imited AUD MK B AS X 15.9 0.15 -9.1% 25.0% 130.8% 114.3% 200.0% -25.0%

Multiplied Media C orporation C AD T S XV :MMC T S XV 22.4 0.18 2.9% 5.9% 33.3% 125.0% 227.3% -23.4%

Myriad G roup AG CHF MYR N S WX 205.8 4.85 1.0% 0.0% 4.8% -2.8% -24.2% -24.2%

NE OW IZ G ames Corpora tion K R W A095660 K OS E 734.8 40,550.00 2.4% -4.0% -4.9% 25.5% 277.2% -9.7%

NetDragon W ebS oft, Inc. HKD 777 S E HK 275.4 4.04 2.0% -5.8% -19.8% -29.0% 40.3% -43.5%

Neteas e. com Inc. US D NT E S NasdaqG S 4,888.4 37.77 0.2% -5.0% -14.0% 12.6% 82.6% -22.1%

NeuLion Incorpora ted C AD T S X:NLN T S X 74.0 0.67 1.5% -8.2% -33.0% -8.2% 42.6% -48.5%

NeXplore C orpora tion US D NXP C OTC P K 31.2 0.56 -11.1% -24.3% -13.8% -20.0% -44.0% -44.0%

Ngi G roup Inc. J P Y 2497 T S E 32.6 24,400.00 -6.1% 9.9% 0.7% -32.2% -52.2% -59.3%

Northgate T echnologies L imited INR 590057 B S E 20.2 27.05 -2.0% -16.4% -35.4% -29.8% -59.4% -62.8%

Open T ext Corp. US D OT E X NasdaqG S 2,289.1 40.60 1.1% 6.0% 9.4% 10.3% 28.8% -2.0%

Openwave S ys tems Inc. US D OPW V NasdaqG S 193.1 2.31 -0.3% -2.0% -7.9% 5.6% 235.1% -26.1%

P erfect W orld Co. , L td. US D PW R D NasdaqG S 1,980.3 39.80 -3.1% -11.8% -11.5% 34.7% 121.6% -21.2%

P NI Digital Media Inc. C AD T S XV :P N T S XV 53.0 1.66 -2.9% 0.6% -14.0% 10.7% 9.2% -22.1%

Quepasa Corp. US D QP S A OTC B B 25.5 2.00 -9.1% 43.9% 25.0% 100.0% 5.3% -20.0%

OAO R B C Information S ys tems US D R B C I R T S 193.9 1.40 -12.7% -12.7% 20.5% 55.3% 179.5% -17.8%

S handa Interactive E nterta inment L td. US D S NDA NasdaqG S 3,549.7 52.78 2.3% -0.6% 9.8% -0.7% 57.7% -18.8%

S hutterfly, Inc. US D S F LY NasdaqG S 463.7 18.06 -0.8% 20.4% 15.5% 33.8% 143.7% -4.0%

S K C ommunications C o. , Ltd. K R W A066270 K OS E 561.6 15,600.00 27.9% 106.9% 76.3% 58.4% 172.7% -4.3%

S NAP Interactive, Inc. US D S T V I OTC B B 4.1 0.38 26.7% 90.0% 8.6% -15.6% -45.7% -64.8%

S ocialwis e, Inc. US D S C LW OTC B B 24.3 0.51 4.1% 4.1% -16.4% -26.1% -38.6% -50.0%

S ohu.com Inc. US D S OHU NasdaqG S 2,209.9 57.46 1.4% 2.1% -11.1% -5.2% 16.9% -20.5%

S park Networks , Inc. US D LOV AME X 61.7 3.00 0.0% 27.7% 34.5% 29.3% 17.6% -11.0%

S pectrumDNA, Inc. US D S P XA OTC B B 7.6 0.16 3.3% 10.7% 19.2% -46.6% 3.3% -65.6%

T encent Holdings Ltd. HKD 700 S E HK 39,524.0 168.50 4.3% 14.9% 37.1% 89.9% 221.6% -0.3%

T he9 L imited US D NC TY NasdaqG S 179.8 7.16 -1.5% -7.9% -5.6% -24.4% -49.2% -57.0%

T heS treet.com, Inc. US D T S CM NasdaqGM 72.8 2.38 0.8% 2.9% -18.8% 17.7% -30.7% -33.0%

T ree.C om, Inc. US D TR E E NasdaqGM 101.3 9.29 -0.4% 46.1% 19.1% -1.8% 145.1% -28.9%

Unis erve Communications Corp. C AD T S XV :US S T S XV 1.4 0.06 50.0% 50.0% 50.0% -25.0% 50.0% -40.0%

United Online Inc. US D UNTD NasdaqG S 618.6 7.31 0.9% 5.1% -5.2% 14.3% 24.4% -22.7%

UOMO Media , Inc US D UOMO OTC B B 3.7 0.04 -16.0% -30.0% -65.3% -68.9% -58.0% -96.0%

V alueC lick Inc. US D VC LK NasdaqG S 869.9 10 2.5% 5.6% -20.3% 1.9% 42.4% -27.2%

VOIS , Inc. US D VOIS OTC B B 11.9 0.01 0.0% 0.0% 200.0% -16.7% 200.0% -47.8%

W ebzen Inc. K R W KOS E :A069080 K OS E 114.1 11,200.00 -5.9% 0.9% 6.7% -30.2% 153.1% -45.9%

W izzard S oftware Corporation US D W ZE AME X 18.2 0.34 -8.1% -19.1% -26.1% -32.0% -64.2% -64.2%

W orlds .com Inc. US D WDDD OTC B B 4.8 0.09 0.0% -10.0% 0.0% -21.7% -55.0% -60.9%

XING AG E UR O1BC XT R A 232.1 30.80 1.8% -6.4% -13.2% 2.3% 13.2% -18.9%

YD Online C orp. K R W A052770 K OS E 94.8 7, 350.00 6.5% 20.1% -14.6% -18.2% 16.1% -40.7%

Y nk K orea Inc. K R W A023770 K OS E 15.1 3, 290.00 -1.5% -11.0% -15.6% -52.2% -25.3% -62.2%

High 60.0% 106.9% 200.0% 200.0% 400.0% -0.1%

Low -44.4% -50.0% -85.2% -94.9% -98.4% -98.9%

Average 966.1 1.8% 3.8% 2.0% 8.5% 56.1% -37.2%Median 0.2% -0.3% -5.2% -3.2% 28.6% -33.2%

Figure 36. Price Performance Source. Capital IQ

Comparable Company Analys is > Web 2.0Valuation Multiples

Company Name Sector Country

Primary

E xchange Ticker

USD Market

Cap ($m)

TE V/LTM

Revenue

TEV/ NTM

Revenue

TEV/LTM

EB ITDA

TEV/NTM

E B ITDA P/LTM EPS P/NTM EPS P/TangBV

Accelerize New Media , Inc. Direct Marketing United S ta tes OTCB B AC LZ 18.7 5. 7x - - - - - -

Actoz S oft C o. , Ltd. G aming S outh K orea KOS E A052790 128. 8 0. 7x - 3.4x - 17.9x - 1. 9x

AQ Interactive, Inc. G aming J apan T S E 3838 40. 1 0. 3x - 5.0x - - - 0. 7x

As knet AG G aming G ermany XT R A XT R A:A5A 21.8 0. 1x - - - - - -

B igs tring C orp. Ins tant Mes saging United S ta tes OTCB B B S GC 1.5 40.4x - - - - - -

B etawave Corporation Media United S ta tes OTCB B BW AV 3.7 0. 1x - - - - - 2. 5x

B eyond Commerce, Inc. S ocia l Network ing United S ta tes OTCB B B YOC 1.2 1. 0x - - - - - -

B right T hings plc S ocial Network ing United K ingdom AIM AIM:B G T 5.6 - - - - - - -

B roadWebAs ia Inc. S ocia l Network ing United S ta tes OTCP K BW BA 4.2 - - - - - - -

C DC C orp. G aming Hong K ong NasdaqGS CHIN .A 237. 5 0. 6x 0. 6x 10. 3x 4.9x - - 10.1x

C hangyou. com L imited G aming C hina Nas daqGS CYOU 1,838. 1 6. 0x 5. 0x 9.7x 7.7x 12.4x 10.9x 9. 6x

C hinese G amer International G aming T aiwan GT S M GT S M:3083 1,107. 4 14.9x - 25. 7x - 33.7x - 16.1x

C ornerW orld C orpora tion Content United S ta tes OTCB B CW R L 2.9 1. 9x - - - - - -

C yberplex Inc. Advertis ing C anada T S X T S X:C X 74. 6 0. 5x 0. 4x 4.5x 3.6x 6. 5x 6. 8x 2. 6x

DADA S pA S ocial Network ing Ita ly CM CM:DA 136.8 0. 8x - 6.0x - - - -

DXN Holdings B hd S ocial Network ing Ma lays ia K LS E DXN 36.4 0. 6x - - - 5. 3x - 0. 7x

Digita lP os t Interactive, Inc. C ontent United S ta tes OTCB B DGLP 3.9 5. 1x - - - - - -

Digita lT own, Inc. S ocia l Network ing United S ta tes OTCB B DG TW 32.8 - - - - - - -

Dolphin Digita l Media , Inc. S ocia l Network ing United S ta tes OTCB B DPDM 11.7 42.1x 0. 8x - - - 0. 8x -

E olith C o. Ltd. G aming S outh K orea KOS E A041060 77. 9 13.2x - 27. 7x - - - 0. 9x

E xtens ions , Inc. C ontent United S ta tes OTCP K E XT I 13. 3 - - - - - - -

F luid Mus ic C anada, Inc. Media United S ta tes T S X T S X:FMN 104.7 17.6x 17.6x - - - - 7. 6x

F rogs ter Interactive P ictures AG G aming G ermany XT R A F R G 64.1 6. 7x - - - - - 8. 1x

G amania Digita l E nterta inment C o. , L td. G aming T aiwan GT S M 6180 260. 7 1. 6x - 9.4x - 27.3x - 3. 3x

G ameOn C o L td. G aming J apan T S E 3812 76. 7 0. 0x - 0.2x - 8. 0x - 0. 9x

G eoS entric Oyj Mobile F inland HLS E GE O1V 51.3 12.0x - - - - - -

G iant Interactive G roup, Inc. G aming C hina NYS E GA 1,594. 3 - - - - 1. 7x 14.9x 0. 3x

G igaMedia L td. G aming T aiwan NasdaqGS G IGM 178.8 0. 6x 1. 1x - 22.6x 7. 1x - 1. 5x

G ravity C o. , Ltd G aming S outh K orea Nas daqGM GR V Y 46.7 - - - - 0. 0x - 0. 0x

G ree, Inc. S ocia l Network ing J apan T S E T S E :3632 2,763. 0 13.1x - 22. 6x - 48.5x - 23.0x

G ungHo Online E nterta inment, Inc. Media J apan OS E 3765 311. 5 2. 3x - 10. 5x - 60.6x - 9. 9x

HanbitS oft, Inc. G aming S outh K orea KOS E A047080 72. 1 1. 0x - - - 70.0x - 2. 0x

IAC /InterActiveCorp. Media United S ta tes Nas daqGS IAC I 2,733. 1 0. 8x 0. 8x 13. 2x 5.6x 11.6x 30.4x 1. 4x

is eemedia Inc. C ontent C anada T S XV IE E 9. 2 5. 1x - - - - - -

J umbuck E nterta inment L imited S ocial Network ing Aus tralia AS X AS X:JMB 13.5 0. 4x - 1.0x - 3. 8x - 1. 2x

K ingsoft C o. L td. G aming C hina S E HK 3888 905. 9 6. 0x - 14. 9x - 19.9x - 4. 8x

L ingo Media C orporation Learning C anada T S XV T S XV :LM 11.2 8. 1x - - - - - -

LookS mart, Ltd. Direct Marketing United S ta tes Nas daqGM LOOK 16.8 - - - - - - 0. 7x

Magnitude Information S ys tems Inc. S ocia l Network ing United S ta tes OTCB B MAG Y 8.0 - - - - - - -

Mixi, Inc. S ocia l Network ing J apan T S E 2121 1,217. 0 8. 1x - 24. 5x - 63.1x - 8. 1x

Modern T imes G roup Mtg AB Media S weden OM MTG B 3,266. 2 2. 0x - 13. 8x - 18.1x - -

MOK O.mobi L imited S ocial Network ing Aus tralia AS X MK B 15.9 21.0x - - - - - 14.2x

Multiplied Media C orporation Mobile C anada T S XV T S XV :MMC 22.4 - 5. 5x - - - - 16.2x

Myriad G roup AG Mobile S witzerland S WX MY R N 205.8 3. 2x - - - - - -

NE OW IZ G ames C orporation G aming S outh K orea KOS E A095660 734. 8 3. 4x - 12. 7x - 37.3x - 18.9x

NetDragon W ebS oft, Inc. G aming C hina S E HK 777 275. 4 1. 3x - 4.4x - 13.4x - 1. 5x

Netease.com Inc. G aming C hina Nas daqGS NT E S 4,888. 4 - - - - 2. 6x 14.2x 0. 7x

NeuL ion Incorporated V ideo C anada T S X T S X:NLN 74.0 2. 4x - - - - - 10.0x

NeXplore C orporation Content United S ta tes OTCP K NXP C 31.2 20.7x - - - - - -

Ngi G roup Inc. Media J apan T S E 2497 32. 6 - - - - - - 0. 6x

Northgate T echnologies L imited Direct Marketing India B S E 590057 20. 2 0. 4x - - - - - -

Open T ext C orp. C ollabora tion C anada NasdaqGS OT E X 2,289. 1 2. 9x 2. 5x 11. 2x 9.3x 49.9x 13.6x -

Openwave S ys tems Inc. Mobile United S ta tes Nas daqGS OPWV 193.1 0. 5x 0. 5x 14. 2x 4.4x - 32.6x 2. 7x

P erfect W orld C o. , Ltd. G aming C hina Nas daqGS PW R D 1,980. 3 0. 4x 1. 9x 0.7x 3.7x 2. 4x 11.5x 1. 1x

P NI Digita l Media Inc. Digita l Imaging C anada T S XV T S XV :P N 53.0 2. 2x 1. 9x 12. 8x 5.9x - 10.4x 11.5x

Quepasa C orp. S ocia l Network ing United S ta tes OTCB B QP S A 25.5 - - - - - - -

OAO R B C Information S ys tems Media R us s ia R T S R B C I 193. 9 0. 0x - 0.3x - - - -

S handa Interactive E nterta inment Ltd. G aming C hina Nas daqGS S NDA 3,549. 7 - - - - 2. 3x 14.6x 0. 4x

S hutterfly, Inc. Digita l Imaging United S ta tes Nas daqGS S FLY 463. 7 1. 6x 1. 5x 13. 0x 8.0x - - 2. 8x

S K C ommunications C o. , Ltd. S earch S outh K orea KOS E A066270 561. 6 2. 8x - 43. 7x - - - -

S NAP Interactive, Inc. Dating United S ta tes OTCB B S T V I 4. 1 0. 8x - 4.8x - 22.8x - 2. 2x

S ocialwise, Inc. S ocia l Network ing United S ta tes OTCB B S C LW 24.3 - - - - - - -

S ohu. com Inc. G aming C hina Nas daqGS S OHU 2,209. 9 3. 3x 2. 9x 7.6x 6.5x 13.5x 15.5x 4. 0x

S park Networks , Inc. S ocia l Network ing United S ta tes AME X LOV 61.7 1. 2x - 5.8x - 20.5x - 27.8x

S pectrumDNA, Inc. Media United S ta tes OTCB B S P XA 7.6 - - - - - - -

T encent Holdings L td. P ortal C hina S E HK 700 39,524. 0 27.4x - - - 68.6x - 30.5x

T he9 L imited G aming C hina Nas daqGS NCT Y 179. 8 - - - - 2. 0x - 0. 1x

T heS treet. com, Inc. Media United S ta tes Nas daqGM T S CM 72.8 0. 1x 0. 1x 4.2x - - - 0. 9x

T ree.C om, Inc. P ortal United S ta tes Nas daqGM TR E E 101. 3 0. 3x 0. 3x 7.8x 9.1x - - 1. 5x

Uniserve C ommunica tions C orp. S ocia l Network ing C anada T S XV T S XV :US S 1. 4 0. 4x - 40. 2x - - - -

United Online Inc. Media United S ta tes Nas daqGS UNTD 618.6 0. 9x 0. 9x 4.1x 3.6x - 5. 6x -

UOMO Media , Inc Media C anada OTCB B UOMO 3.7 5. 2x - - - - - -

V a lueC lick Inc. Media United S ta tes Nas daqGS VC LK 869. 9 1. 3x 1. 4x 5.4x 5.3x - 16.5x 4. 7x

VO IS , Inc. S ocia l Network ing United S ta tes OTCB B VOIS 11. 9 - - - - - - 63.2x

W ebzen Inc. G aming S outh K orea KOS E KOS E :A069080 114. 1 2. 3x - 21. 0x - 61.4x - 1. 1x

W izzard S oftware C orpora tion P odcas ting United S ta tes AME X WZE 18.2 3. 8x - - - - - -

W orlds .com Inc. C ontent United S ta tes OTCB B WDDD 4.8 - - - - - - -

X ING AG S ocial Network ing G ermany XT R A O1BC 232. 1 2. 9x - 10. 8x - 31.4x - 6. 7x

Y D Online C orp. G aming S outh K orea KOS E A052770 94. 8 1. 7x - 8.0x - 9. 8x - 2. 9x

Y nk K orea Inc. G aming S outh K orea KOS E A023770 15. 1 1. 2x - 11. 0x - - - 0. 7x

H igh 39,524. 0 42.1x 17.6x 43. 7x 22.6x 70.0x 32.6x 63.2x

Low 1.2 0. 0x 0. 1x 0.2x 3.6x 0. 0x 0. 8x 0. 0x

Average 966.1 5.4x 2.5x 11.7x 7.2x 23.5x 14.2x 7.0xMedian 72. 4 1. 9x 1. 2x 10. 0x 5.7x 15.7x 13.9x 2. 6x

Figure 37. Valuation Comparison Source. Capital IQ

Comparable Company Analys is > Web 2.0Summary by Country

Company Name USD Market Cap ($m) Avg USD Market Cap ($m) USD LTM Total Rev ($m) USD LTM Total E B ITDA ($m) EB ITDA %

United S tates 29 China 56,945.8 China 5,694.6 China 4,496.8 China 2,262.8 China 49.0%

China 10 United S tates 5,465.2 S weden 3,266.2 United S tates 3,752.1 United S ta tes 393.7 Aus tra lia 42.8%

Canada 9 J apan 4,440.9 J apan 740.1 S weden 1,942.0 S weden 274.4 T aiwan 37.3%

S outh K orea 9 S weden 3,266.2 T aiwan 515.6 Canada 992.4 J apan 213.0 J apan 24.3%

J apan 6 Canada 2,538.6 Canada 282.1 S outh K orea 740.1 Canada 199.5 S outh K orea 20.1%

Ta iwan 3 S outh K orea 1,845.8 Hong K ong 237.5 J apan 680.8 S outh K orea 133.5 S weden 14.1%

Germany 3 T a iwan 1,546.9 S witzerland 205.8 T a iwan 404.6 T a iwan 65.0 Italy 13.1%

Aus tra lia 2 Germany 318.0 S outh K orea 205.1 Hong K ong 334.2 Italy 31.0 R us s ia 13.1%

S witzerland 1 Hong K ong 237.5 R us s ia 193.9 Ita ly 236.1 R us s ia 20.4 Hong K ong 6.0%

India 1 S witzerland 205.8 United S ta tes 188.5 Germany 171.4 Hong K ong 20.0 S witzerland 5.4%

F inland 1 R us s ia 193.9 Italy 136.8 R us s ia 156.3 Germany 9.7 Germany -7.4%

United K ingdom 1 Ita ly 136.8 Germany 106.0 Malays ia 78.5 Aus tra lia 4.9 Canada -10.6%

Ita ly 1 F inland 51.3 F inland 51.3 S witzerland 63.0 S witzerland 3.4 United S ta tes -15.4%

Hong K ong 1 Malays ia 36.4 Malays ia 36.4 India 47.7 United K ingdom -2.7 F inland NA

S weden 1 Aus tra lia 29.4 India 20.2 Aus tralia 17.8 F inland -18.5 India NA

R us s ia 1 India 20.2 Aus tra lia 14.7 F inland 4.5 India -51.2 United K ingdom NA

Malays ia 1 United K ingdom 5.6 United K ingdom 5.6 United K ingdom 0.0 Malays ia -85.2 Malays ia NA

Grand Total 80 Grand Total 77,284.4 Grand Total 966.1 Grand Total 14,118.5 Grand Total 3,473.8 Grand Total 11.8%

Figure 38. Comparison by Country Source. Capital IQ

Comparable Company Analys is > Web 2.0Summary by E xchange

Company Name USD Market Cap ($m) Avg USD Market Cap ($m) USD LTM Total Rev ($m) USD LTM Total E B ITDA ($m) EB ITDA %

OTCB B 16 S E HK 40,705.3 S E HK 13,568.4 OM 1,942.0 NasdaqG S 1,918.2 NY S E 68.2%

NasdaqGS 14 NasdaqGS 22,230.0 OM 3,266.2 S E HK 607.9 S E HK 897.1 AS X 42.8%

KOS E 8 TS E 4,129.4 NY S E 1,594.3 NasdaqGS 508.5 OM 274.4 S E HK 40.6%

TS XV 5 OM 3,266.2 Nas daqG S 1,587.9 CM 236.1 T S E 187.1 G TS M 37.3%

TS E 5 KOS E 1,799.1 T S E 825.9 NY S E 202.3 NY S E 137.9 Nas daqG S 30.7%

NasdaqGM 4 NY S E 1,594.3 G TS M 684.0 R T S 156.3 K OS E 115.4 T S E 24.7%

TS X 3 GT S M 1,368.0 OS E 311.5 OS E 116.4 G TS M 65.0 OS E 22.3%

XTR A 3 XTR A 318.0 K OS E 224.9 T S E 112.9 CM 31.0 K OS E 18.2%

OTCP K 3 OS E 311.5 S WX 205.8 G T S M 110.5 OS E 25.9 OM 14.1%

S E HK 3 TS X 253.3 R T S 193.9 NasdaqGM 97.3 NasdaqGM 25.2 CM 13.1%

AME X 2 NasdaqGM 237.6 CM 136.8 K OS E 86.1 R T S 20.4 R T S 13.1%

AS X 2 S WX 205.8 XT R A 106.0 K LS E 78.5 XT R A 9.7 T S XV 9.0%

GT S M 2 R T S 193.9 T S X 84.4 S W X 63.0 AME X 6.0 Nas daqGM 8.6%

S WX 1 OTCB B 166.1 Nas daqGM 59.4 XTR A 57.1 AS X 4.9 S WX 5.4%

HLS E 1 CM 136.8 HLS E 51.3 B S E 47.7 S WX 3.4 XT R A -7.4%

CM 1 TS XV 97.3 AME X 40.0 T S X 46.5 AIM -2.7 AME X -27.7%

B S E 1 AME X 79.9 K LS E 36.4 AME X 26.4 T S X -7.0 T S X -35.8%

OS E 1 HLS E 51.3 B S E 20.2 AS X 8.9 T S XV -7.2 OTC B B -48.2%

NY S E 1 OTCP K 48.8 T S XV 19.5 T S XV 8.6 OTC P K -17.9 OTC P K NA

AIM 1 K LS E 36.4 OTC P K 16.3 HLS E 4.5 HLS E -18.5 AIM NA

OM 1 AS X 29.4 AS X 14.7 OT CB B 2.4 B S E -51.2 B S E NA

R T S 1 B S E 20.2 OTC B B 10.4 OT CP K 0.6 OTC B B -58.3 HLS E NA

K LS E 1 AIM 5.6 AIM 5.6 AIM 0.0 K LS E -85.2 K LS E NA

Grand Total 80 Grand Total 77,284.4 Grand Total 966.1 Grand Total 14,118.5 Grand Total 3,473.8 Grand Total 11.8%

Figure 39. Comparison by Exchange Source. Capital IQ

Fin. Amount (Million) Type of financing Fin. Amount (Million) Type of financing

Company Name Acquis ition Company Name Angel/S eed

S kype 2025.0 MediaMath 16.6

P layF ish 400.0 E do Interactive 16.5

J a jah 207.0 K ontera L td. 15.5

Mint 170.0 B oku 13.0

S hanghai Dacheng Network 80.0 Causes 10.0

P eople Media 80.0 Imeem 8.8

S uper R ewards 50.0 S canS cout 8.1

K u6 44.0 S BNation 8.0

F riends R eunited 42.0 B ubble Motion 6.0

AdL ink Internet Media 41.2 Tongxue 6.0

Grand Total 3139.2 Grand Total 108.4


Company Name Debt financing Company Name Series A

One Net E nterta inment 10.0 P laydom 43.0

The R ubicon P roject 8.0 P opC ap G ames 22.5

Topsy 3.0 GOOM R adio 16.0

Loomia 1.5 Marin S oftware 13.0

Myngle 1.3 gWallet 12.5

CommunityLend 1.3 S uperS ecret 10.0

P rosper. com 1.0 AdChina 10.0

T ransG aming Inc. 0.5 Nurien 10.0

Grand Total 26.5 Go Internet Media 10.0

Intent Media 9.0

InXpo 9.0

Grand Total 165.0


Company Name Series B Company Name Series C

Groupon 30.0 Zynga 180.0

S mith & T inker 29.0 P andora Media 35.0

S ynthas ite 20.0 ChaCha 30.0

K aixin001. com 20.0 DailyMotion 25.3

Collective Media 20.0 S ezmi 25.0

As ter Data S ys tems 17.0 T remor Media 20.0

Livebookings 16.0 E ngine Y ard 19.0

Zynga 15.0 L ithium 18.0

Offerpal Media 15.0 S ugar Inc. 16.0

Tumri 15.0 Millennia l Media 16.0

Grand Total 197.0 HubS pot 16.0

Grand Total 400.3


Company Name Series D Company Name Series E

F acebook 200.0 Twitter 100.0

Turbine 50.0 E mergent G ame T echnologies 12.5

R ockY ou 50.0 G lam Media 10.0

Y ouku 40.0 NewsG ator 10.0

Twitter 35.7 Mzinga 10.0

Zoosk 30.0 Grand Total 142.5

E ns equence 20.0

Ning 15.0

Zoove 13.2

QuickP lay Media 12.0

S endMe Inc. 12. 0

Grand Total 477.9

Financing - 2009 (US$ mm) - Top Ten by Type

Figure 40. Top 10 Deals, By Type, 2009 Source. Company reports

F inancing - 2009 (US$ m)F in. Amount (Million) Type of financing

Month Company Name Country Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E Grand Total

J an-09 ChaCha US A 30.0 30. 0

As ter Data S ystems US A 17.0 17. 0

Yodle US A 13.0 13. 0

AdMob US A 12.5 12. 5

VirtuOz F rance 11.4 11. 4

IMVU US A 10.0 10. 0

NewsGator US A 10.0 10. 0

DECA US A 10.0 10. 0

Go Internet Media US A 10.0 10. 0

RatePoint US A 10.0 10. 0

Nurien K orea 10. 0 10. 0

Limbo US A 9.0 9.0

One True Media US A 9.0 9.0

Play Hard S ports US A 8.0 8.0

SundaySky Is rael 8. 0 8.0

J ibJab US A 7.5 7.5

Xobni US A 7.0 7.0

Evernote US A 6.5 6.5

Ins ideView US A 6.5 6.5

Kewego F rance 6. 2 6.2

Ohai US A 6.0 6.0

C loudera US A 6.0 6.0

Motionbox US A 6.0 6.0

Fliqz US A 6.0 6.0

SocialMedia US A 6.0 6.0

Geni US A 5.0 5.0

AboutUs US A 5.0 5.0

Gbox US A 5.0 5.0

Sportsblogs US A 5.0 5.0

Scrapblog US A 4.0 4.0

OneSeason.com US A 3.5 3.5

E -G lobal Sports Network US A 3.5 3.5

Tripwolf Aus tria 2. 5 2.5

mEgo US A 2.5 2.5

Hubdub UK 1.2 1.2

Snooth US A 1.0 1.0

CoveritL ive Canada 1. 0 1.0

TweetDeck UK 0.5 0.5

BackType US A 0.3 0.3

Identi.ca Canada 0. 2 0.2

Meez US A

J an-09 Total 9.5 66.2 74.9 112.2 9.0 10.0 281.8

Feb-09 Twitter 35. 7 35. 7

Synthas ite S outh Africa 20.0 20. 0

Tremor Media US A 18.0 18. 0

Offerpal Media US A 15.0 15. 0

Imagini UK 13.5 13. 5

Emergent Game Technologies US A 12.5 12. 5

Outbrain Is rael 12.0 12. 0

Tvtrip F rance 9.0 9.0

Tongxue China 6. 0 6.0

Oodle US A 5.6 5.6

Tributes .com US A 4.3 4.3

TextDigger US A 4.3 4.3

OneSpot US A 4.2 4.2

FetchDog US A 4.0 4.0

Mixpo Canada 4.0 4.0

Virtual Fairground Netherlands 4. 0 4.0

7 B illion People US A 3.0 3.0

FamilyLink.com US A 2.9 2.9

Whis tleBox US A 2.3 2.3

MobGold China 2. 0 2.0

Mendeley UK 2.0 2.0

Outright US A 2.0 2.0

Tvinci Is rael 1. 6 1.6

Filtrbox US A 1.4 1.4

MMO L ife Netherlands 1. 3 1.3

Cake F inancial US A 1.3 1.3

Invodo US A 1.2 1.2

fav.or.it UK 0.7 0.7

Feb-09 Total 13.3 32.3 76.4 23.6 35.7 12.5 193.7

Mar-09 Kaixin001.com China 20.0 20. 0

Vidyo US A 15.0 15. 0

Buzznet US A 12.5 12. 5

LendingC lub US A 12.0 12. 0

SendMe Inc. US A 12.0 12. 0

Auditude US A 10.5 10. 5

Ngmoco United S ta tes 10.0 10. 0

Glam Media US A 10.0 10. 0

Vis ible Measures US A 10.0 10. 0

SuperSecret US A 10.0 10. 0

GoViral UK 8.8 8.8

Greys tripe US A 5.5 5.5

J ajah Is rael 5.0 5.0

C loudera US A 5.0 5.0

OMGPOP US A 5.0 5.0

Apture US A 4.1 4.1

S imulmedia US A 4.0 4.0

Tynt Canada 3. 9 3.9

AnySource Media US A 3.2 3.2

Pixazza US A 3.1 3.1

Topsy US A 3.0 3.0

Sports Compos ite DE US A 2.0 2.0

B it.ly US A 2.0 2.0

Hunch US A 2.0 2.0

AdultSpace US A 1.3 1.3

Myngle Netherlands 1. 3 1.3

33Acros s US A 0.8 0.8

Three Melons Argentina 0.6 0.6

Mar-09 Total 1.3 4.3 0.6 46.1 60.3 43.0 17.0 10.0 182.5

Financing - 2009 (US$ m)Fin. Amount (Million) Type of financ ing

Month Company Name Country Angel/S eed Debt financing PIPE Series A S eries B S eries C S eries D Grand Total

Apr-09 Collective Media US A 20.0 20. 0

GOOM R adio F rance 16. 0 16. 0

Marin S oftware US A 13.0 13. 0

The R ubicon Project US A 8.0 5.0 13. 0

FreeWheel US A 12.0 12. 0

Cellufun US A 10.0 10. 0

Conductor Inc . US A 10.0 10. 0

ScanS cout US A 8.1 8.1

Batanga US A 7.5 7.5

Viximo US A 5.0 5.0

DoubleTwis t US A 5.0 5.0

IMShopping US A 4.7 4.7

Booyah US A 4.5 4.5

Socialtext US A 4.5 4.5

Mixercas t US A 4.1 4.1

SoundCloud Germany 3. 3 3.3

TubeMogul US A 3.0 3.0

Tribal Nova Canada 2.5 2.5

Tripbase US A 2.0 2.0

Socialcas t US A 1.4 1.4

Brandtology S ingapore 1. 4 1.4

Scan & Target F rance 1. 3 1.3

J odange US A 1.2 1.2

Foodis ta US A 0.6 0.6

Apr-09 Total 15.6 8.0 49.8 52.5 16.1 12.0 154.0

May-09 Facebook US A 200.0 200. 0

One Net E ntertainment China 10.0 10.0 20. 0

Cyberplex Canada 12.9 12. 9

Peer39 US A 10.5 10. 5

OpenX UK 10.0 10. 0

Intent Media US A 9.0 9.0

Imeem US A 8.8 8.8

EveryZing US A 8.3 8.3

ConnectEdu US A 8.2 8.2

B logHer Inc . US A 7.0 7.0

WonderHill US A 7.0 7.0

Gis t US A 6.8 6.8

Fuhu Inc . US A 6.3 6.3

Azuki S ys tems US A 6.0 6.0

I Love Rewards Canada 5.9 5.9

DocuS ign US A 5.0 5.0

TimeBridge US A 5.0 5.0

OLX US A 5.0 5.0

Medialets US A 4.0 4.0

Cloud E ngines US A 3.3 3.3

Resonate Networks US A 2.0 2.0

VoxPop US A 1.5 1.5

Mo'Minis Is rael 1. 5 1.5

Loop'd Network US A 0.8 0.8

May-09 Total 13.6 10.0 22.9 35.5 26.9 40.8 205.0 354.6

Jun-09 Sugar Inc. US A 16.0 16. 0

Tumri US A 15.0 15. 0

Boku US A 13.0 13. 0

Wimba US A 12.0 12. 0

Grab Networks US A 12.0 12. 0

AdChina China 10. 0 10. 0

Goojet SAS F rance 8.5 8.5

Edo Interactive US A 8.0 8.0

AdMeld Inc . US A 8.0 8.0

beeTV US A 8.0 8.0

blueK iwi Software SA F rance 6.5 6.5

Nokeena US A 6.5 6.5

Bubble Motion US A 6.0 6.0

Sens e Networks US A 6.0 6.0

Zoos k US A 6.0 6.0

Gather US A 5.3 5.3

MojoPages US A 5.0 5.0

Taomee China 5. 0 5.0

Animoto US A 4.4 4.4

GameGround Is rael 4. 1 4.1

R ingRevenue US A 3.5 3.5

Crowdcas t US A 3.0 3.0

YuMe US A 2.9 2.9

eRepublik S pain 2. 8 2.8

Newser LLC US A 2.5 2.5

ClickFuel US A 2.5 2.5

Inigral US A 2.4 2.4

AdE x Media US A 2.3 2.3

GROU.PS US A 2.1 2.1

my6sens e Is rael 2. 0 2.0

Yapta US A 2.0 2.0

OneTXT US A 2.0 2.0

I Love Rewards Canada 1.8 1.8

Cliqset US A 1.5 1.5

Picaboo US A 1.0 1.0

TodaCell Is rael 1. 0 1.0

Glubble Netherlands 1.0 1.0

AdWhirl US A 1.0 1.0

LiquidPlanner US A 1.0 1.0

MOG US A 0.5 0.5

MashLogic US A 0.5 0.5

CommunityLend Canada 0.3 0.3

OneForty US A 0.2 0.2

J un-09 Total 50.6 0.3 15.3 28.5 71.2 34.0 5.3 205.1

Financing - 2009 (US$ m)Fin. Amount (Million) Type of financing

Month Company Name Country Angel/S eed Debt financ ing Series A S eries B S eries C S eries D Series E Grand Total

J ul-09 Pandora Media US A 35.0 35.0

Kontera L td. Is rael 15.5 15.5

Ning US A 15.0 15.0

QuickP lay Media Canada 12.0 12.0

B lekko US A 11.5 11.5

Causes US A 10.0 10.0

Outspark US A 8.3 8.3

ConnectE du US A 8.2 8.2

Acquia, Inc US A 8.0 8.0

SBNation US A 8.0 8.0

MediaMath US A 6.6 6.6

Metaversum Germany 6.3 6.3

iMemories US A 6.2 6.2

Invodo US A 6.0 6.0

J ambool US A 5.0 5.0

Quikr India Pvt. L td. India 4.1 4.1

ChaCha US A 4.0 4.0

Nexage US A 4.0 4.0

S tyleCaster US A 4.0 4.0

OPEN Sports network US A 4.0 4.0

TweetDeck UK 3.2 3.2

Busca US A 2.6 2.6

ProtonMedia US A 2.5 2.5

Akademos US A 2.5 2.5

iLoop Mobile US A 2.0 2.0

Comunitae S pa in 1.7 1.7

Lat49 Canada 1.5 1.5

Aloqa Germany 1.5 1.5

Thread US A 1.2 1.2

Tributes .com US A 1.2 1.2

CoTweet US A 1.1 1.1

Cellufun US A 1.0 1.0

Cognitive Match L imited UK 1.0 1.0

Clikthrough US A 1.0 1.0

BookFresh US A 0.5 0.5

People Capital US A 0.5 0.5

Masher Media US A 0.3 0.3

Jul-09 Total 65.0 11.1 36.8 63.0 31.0 206.9

Aug-09 Turbine US A 50.0 50.0

Smith & Tinker US A 29.0 29.0

Mint US A 14.1 14.1

Zoove US A 13.2 13.2

R ichR elevance US A 12.5 12.5

Traffiq US A 10.0 10.0

MediaMath US A 10.0 10.0

B ill.com US A 8.5 8.5

Edo Interactive US A 8.5 8.5

InnoCentive US A 7.3 7.3

OneR iot US A 7.0 7.0

Balihoo US A 7.0 7.0

Boxee US A 6.0 6.0

Polyvore US A 5.6 5.6

Fanbase US A 5.0 5.0

MOG US A 5.0 5.0

OurS tage US A 3.0 3.0

Z2L ive US A 3.0 3.0

KODA US A 3.0 3.0

S coreloop Germany 2.8 2.8

Roblox US A 2.2 2.2

Tremor Media US A 2.0 2.0

iS ocket US A 2.0 2.0

R ights Flow US A 1.5 1.5

Plis ta Germany 1.4 1.4

Ches sCube S outh Africa 1.3 1.3

SCVNGR US A 0.8 0.8

Links ify US A 0.5 0.5

iS yndica US A 0.4 0.4

DailyBooth US A 0.0 0.0

Aug-09 Total 25.8 12.3 77.6 43.6 63.2 222.4

Sep-09 Twitter 100.0 100.0

Ensequence US A 20.0 20.0

Livebookings UK 16.0 16.0

Mzinga US A 10.0 10.0

InXpo US A 9.0 9.0

J obvite US A 8.3 8.3

R iot Games US A 8.0 8.0

NextB io US A 8.0 8.0

Imeem US A 6.0 6.0

Vuclip US A 6.0 6.0

YuMe US A 5.0 5.0

Booyah US A 5.0 5.0

NeoEdge US A 4.0 4.0

Alliance Health Networks US A 3.3 3.3

Unis fair US A 3.1 3.1

Conduit Labs US A 3.0 3.0

Mocapay US A 3.0 3.0

Fwix US A 2.8 2.8

Vantrix Canada 2.6 2.6

MashLogic US A 2.5 2.5

Greystripe US A 2.0 2.0

Loomia US A 1.5 1.5

FourSquare US A 1.4 1.4

EduFire US A 1.3 1.3

Fluther US A 0.6 0.6

TransGaming Inc . Canada 0.5 0.5

OnL ive US A

Sep-09 Total 0.6 2.0 16.9 52.3 27.9 23.1 110.0 232.8

Financing - 2009 (US$ m)Fin. Amount (Million) Type of financing

Month Company Name Country Angel/S eed Debt financing PIPE Series A Series B S eries C S eries D Series E Grand Total

Oct-09 DailyMotion F rance 25.3 25.3

PopCap Games US A 22.5 22.5

Engine Yard US A 19.0 19.0

HubSpot US A 16.0 16.0

J ive S oftware US A 12.0 12.0

Spigit US A 10.0 10.0

Ooyala US A 10.0 10.0

S canS cout US A 8.5 8.5

Box.net US A 7.1 7.1

Reality Mobile US A 6.5 6.5

Watercooler US A 5.5 5.5

Vdopia US A 4.7 4.7

Sometrics US A 4.0 4.0

Amie S treet US A 3.9 3.9

Aurora Feint US A 3.7 3.7

ViVu US A 3.0 3.0

Fizzback UK 2.6 2.6

Technorati US A 2.0 2.0

Onehub US A 1.3 1.3

DataS ync US A 1.2 1.2

CommunityLend Canada 1.0 1.0

Hot Potato US A 1.0 1.0

DailyBooth US A 1.0 1.0

L inkedex UK 1.0 1.0

S tatusNet Canada 0.9 0.9

IngBoo US A 0.8 0.8

Chango Canada 0.7 0.7

Credit K arma US A 0.5 0.5

L is tia US A 0.4 0.4

OneForty US A 0.2 0.2

Oct-09 Total 4.7 1.0 44.6 56.5 67.4 2.0 176.1

Nov-09 RockYou US A 50.0 50.0

Playdom US A 43.0 43.0

Sezmi US A 25.0 25.0

Millennial Media US A 16.0 16.0

Zynga US A 15.0 15.0

E vernote US A 10.0 10.0

CubeTree US A 8.0 8.0

Alice.com US A 6.0 6.0

E ventbrite US A 6.0 6.0

Placecas t US A 5.0 5.0

AppNexus US A 5.0 5.0

Altruik US A 4.7 4.7

Credit K arma US A 2.5 2.5

B lekko US A 2.5 2.5

Playfire UK 2.1 2.1

S impleGeo US A 1.5 1.5

Prosper.com US A 1.0 1.0

Adfonic UK 0.6 0.6

S coopler US A 0.5 0.5

Nov-09 Total 2.6 1.0 52.3 44.0 52.0 52.5 204.4

Dec-09 Zynga US A 180.0 180.0

Youku China 40.0 40.0

Zoosk US A 30.0 30.0

Groupon US A 30.0 30.0

L ithium US A 18.0 18.0

gWallet US A 12.5 12.5

MobGold China 12.0 12.0

Movik Networks US A 8.5 8.5

Gowalla US A 8.4 8.4

Gogii US A 8.2 8.2

L iveMocha US A 8.0 8.0

SonicMule US A 8.0 8.0

kaChing US A 7.5 7.5

SeekingAlpha Is rael 7.0 7.0

Pageonce US A 6.5 6.5

Genius .com US A 6.5 6.5

Curse US A 6.0 6.0

AlikeL is t US A 5.0 5.0

PowerR eviews US A 4.9 4.9

Smaato US A 4.5 4.5

SCVNGR US A 4.0 4.0

Tonchidot J apan 4.0 4.0

Twilio US A 3.7 3.7

5 Minutes China 3.5 3.5

J anRain US A 3.3 3.3

S tockTwits US A 3.0 3.0

Artic le One Partners US A 3.0 3.0

Whiskey Media US A 2.5 2.5

Appolic ious US A 2.4 2.4

Grapeshot UK 2.4 2.4

Center'd US A 1.9 1.9

WePay US A 1.7 1.7

J inni Is rael 1.6 1.6

GlobalMotion Media US A 1.0 1.0

Dec-09 Total 2.5 58.0 101.5 210.9 76.5 449.4

Grand Total 205.1 26.5 38.8 453.5 730.6 734.4 532.3 142.5 2863.7

Figure 41. Financing, 2009 by Company, Country, Round, Month Source. Company reports

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L IST OF D IS CLOS URE TE RMS :

1. None applicable.

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