Financing activity continued to ramp up in April after a slow start to the month. Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant +40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A total of four deals greater than $10 million each helped the overall statistics. Social Networking company DigitalTown Inc. (DGTW-OTCBB) was the top price performer for the week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-EHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had the worst return, dropping 27.6% in the week after news of its losing the license to operate World of Warcraft in China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances greater than +10%. Only one company returned more than 20%.

1. SOFTWARE & SERVICES 21 APRIL 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
MEDIA COMPANY (GOO M RADIO) TOP DESTINATIO N FOR CAPITAL IN THIRD WEEK OF APRIL
ACT I VIT Y H UM S AL O N G I N W E EK T H R E E OF A PR I L
Total financings (month-to-date) jumped to $92.2 million (this week) from $66.3 million (last week) – a significant
40%. As of last week, a total of 12 deals closed, with a $16 million raise by GOOM Radio being a major contributor. A
total of four deals greater than $10 million each helped the overall statistics.
It appears, from comparing the total number of capital raises (so far) in April, that the month may likely finish of at or
slightly below March levels, unless the balance of the month witnesses a sudden jump in the number of transactions
or a few high dollar financings. This may be an indication that Venture Capitalists (VC) are being more cautious with
deployment of capital in a recessionary environment. According to The W all Street Journal (18-April-2009), VC
activity has dropped to levels not seen since 1996. The journal goes on to state that pension funds, endowments, and
foundations that traditionally have funded VCs are reluctant to commit money since these institutions are seeing a
significant drop in values of the public and private investments.
Financing Activity Last Three Months
200.0 7.6
180.0
7.4
160.0
7.2
140.0
7.0
120.0
(US$m)
(US$m)
100.0 6.8
80.0
6.6
60.0
6.4
40.0
6.2
20.0
0.0 6.0
Feb-09 Mar-09 Apr-09
Total Average
Capital Market Activity: Three weeks into April and we saw 12 companies raising money, with GOOM Radio and
Collective Media raising $16 million and $20 million, respectively. The month-to-date total of total capital raised
stands at $92.2 million. The Rubicon Project (ad network sector) and Cellufun (gaming sector) followed GOOM Radio,
raising $13 million and $10 million, respectively.
Price Performance: Social Networking company DigitalTown Inc. (DGTW -OTCBB) was the top price performer for the
week, returning 20%, closely followed by Kingsoft Co. Ltd. (3888-SEHK) at 17.6%. The9 Ltd. (NCTY-NasdaqGS) had
the worst return, dropping 27.6% in the week after news of its losing the license to operate W orld of W arcraft in
China. Of the 34 companies (with stock price greater than $1), 10 companies on our list had price performances
greater than +10%. Only one company returned more than 20%.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550

2. Page 2
THE WEB 2.0 UNIVERSE
Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market
cap of ~ $40 billion (Figure 1). The average market cap for the group is ~$431 million (but a median of only $45.5 million),
with average trailing revenue of $145 million (median $52 million). The companies are also generally profitable, with a
median EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.1x) and 8.9x
trailing EBITDA (median 7.1x). Thirteen of the companies have more than 500 employees.
C omparable C o mpany A nalys is > W eb 2.0
Trading Current U S D Market U S D LT M To tal US D L TM T otal E BITDA TE V/LT M T E V/LT M
C om pan y Nam e L TM as of T icker E xc hange Cu rrency H Q P rice C ap ($m) R ev ($m) E B ITDA ($m) % R evenu e E B IT DA E mployees
Acce le rize N ew Me dia, Inc. 1 2/31 /200 8 AC LZ OT C B B USD U nited S ta tes 0 .49 1 3.4 3.8 (4 .8) NM 4.7 x - 11
Actoz S of t C o., L td. 1 2/31 /200 8 A0 527 90 K OS E KR W S outh K orea 14, 700 9 4.0 70. 1 1 4.0 20 .0% 0.9 x 4.7x NA
AQ Inte ractive , Inc. 1 2/31 /200 8 38 38 TSE JPY J apan 48 ,000 .00 2 6.5 61. 3 4 .9 8 .0% - - NA
As s o cia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K USD U nited S ta tes 0 0 .1 0.1 (2 .3) NM 8.1 x - 3
B igstring Co rp. 1 2/31 /200 8 BS GC OT C B B USD U nited S ta tes 0 .01 0 .7 0.1 (2 .1) NM 23.6 x - 4
B e tawave Corpora tion 1 2/31 /200 8 B W AV OT C B B USD U nited S ta tes 0 4 .1 7.7 (1 1.8) NM - - 45
B e yo nd Commerce, In c. 1 2/31 /200 8 B Y OC OT C B B USD U nited S ta tes 1 .50 6 2.0 1.8 (8 .6) NM 35.7 x - 43
B right T hings plc 9 /30 /200 8 AIM:B G T AIM GBP U nited K ingdom 0 5 .0 0.2 (1 .6) NM 20.6 x - 3 ,12 5
B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K USD U nited S ta tes 0 .45 3 8.2 0.0 (4 .6) NM - - 37
C DC C orp. 9 /30 /200 8 C HIN .A N as da qG S USD H ong K on g 1 15 1.0 428 .1 1 8.8 4 .4% 0.5 x 1 1.0 x NA
C hina G ate wa y C orpo ra tion 9 /30 /200 8 C GW Y OT C B B USD U nited S ta tes 0 .00 0 .0 6.7 (6 .6) -9 8.9% 6.0 x - NA
C hine s e G amer International 1 2/31 /200 8 G T S M:308 3 GTSM TWD T aiwan 188 47 1.1 46. 1 2 3.3 50 .5% 1.1 x 1 2.9 x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B USD U nited S ta tes 0 .10 6 .4 1.3 NM NM 0.7 x 4.2x 574
C yberplex Inc. 1 2/31 /200 8 T S X:C X TSX C AD C ana da 1 5 2.2 46. 4 3 .9 8 .4% 0.5 x 3.9x NA
DADA S pA 9 /30 /200 8 C M:D A CM EUR Ita ly 4 .99 10 4.4 219 .0 3 5.0 16 .0% - - NA
DXN Holdings B hd 1 1/30 /200 8 DXN KLSE MY R Ma la ys ia 0 1 9.8 76. 5 1 0.2 13 .3% 5.0 x - 11
Dibz Inte rnational, Inc. NA DIB Z OT C P K USD U nited S ta tes 0 .00 0 .0 NA NM NM - - 3
DigitalP ost Inte ra ctive , Inc. 9 /30 /200 8 DG LP OT C B B USD U nited S ta tes 0 1 .1 0.4 (3 .3) NM - - 6
DigitalT own, In c. 1 1/30 /200 8 DG T W OT C B B USD U nited S ta tes 3 .00 8 1.2 NM (2 .5) NM 1.2 x - NA
Dolphin D igital Me dia, Inc. NA DP DM OT C B B USD U nited S ta tes 1 2 6.6 NA NM NM - - 2
E o lith C o. L td. 1 2/31 /200 7 A0 410 60 K OS E KR W S outh K orea 625 .00 2 1.9 18. 8 (0 .1) -0 .3% - - 22
E xte ns ions , Inc. 9 /30 /200 8 E XT I OT C P K USD U nited S ta tes 0 1 4.2 NM NM NM 0.0 x - 29
F inancia l Media G roup, Inc. 1 1/30 /200 8 F NG P OT C B B USD U nited S ta tes 0 .01 0 .4 6.8 1 .2 18 .3% 4.8 x - NA
F luid Mus ic Ca nada, In c. 9 /30 /200 8 T S X:F MN TSX C AD U nited S ta tes 0 1 4.9 4.2 (8 .6) NM 1.1 x 7.7x NA
F rogs te r Interactive P ictu re s AG 6 /30 /200 8 FRG XT R A EUR G ermany 8 .35 2 5.4 5.2 (3 .1) -6 0.6% 0.5 x 1.8x NA
G a ma nia Digital E ntertainmen t C o., L td. 1 2/31 /200 8 61 80 GTSM TWD T aiwan 32 14 3.2 111 .4 1 6.1 14 .5% 6.9 x - 94
G a me On C o L td. 1 2/31 /200 8 38 12 TSE JPY J apan 93 ,800 .00 9 2.2 75. 8 1 9.6 25 .9% - - NA
G e oS e ntric O yj 1 2/31 /200 8 G E O1 V H LS E EUR F inland 0 4 6.3 5.7 (1 2.7) NM 1.5 x 6.4x NA
G ian t Intera ctive G roup, Inc. 1 2/31 /200 8 GA NYS E USD C hina 7 .60 1,7 17.6 233 .2 14 4.4 61 .9% - - 636
G iga Media Ltd. 1 2/31 /200 8 G IG M N as da qG S USD T aiwan 7 36 8.5 190 .4 4 6.0 24 .2% 39.5 x - NA
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M USD S outh K orea 0 .98 2 7.2 36. 8 7 .1 19 .2% 1.1 x 6.0x NA
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE JPY J apan 5, 480 1,2 42.7 29. 9 1 0.7 36 .0% 1.0 x - NA
G u ngH o O nline E ntertainment, Inc. 1 2/31 /200 8 37 65 OS E JPY J apan 122 ,300 .00 14 2.4 114 .3 2 0.4 17 .8% 0.4 x 8.2x 3 ,20 0
H anbitS of t, Inc. 1 2/31 /200 8 A0 470 80 K OS E KR W S outh K orea 4, 160 6 8.5 52. 2 (1 4.7) -2 8.2% - - NA
IAC /InterActiveC orp. 1 2/31 /200 8 IAC I N as da qG S USD U nited S ta tes 16 .19 2,2 81.9 1 ,44 5.1 6 4.6 4 .5% - - NA
IAS E n ergy, Inc. 1 /31 /200 9 IAS C.A OT C B B USD C ana da 0 1 7.2 0.0 (0 .8) NM 2.1 x - NA
IdeaE dge, Inc. 1 2/31 /200 8 OT C B B :ID AE OT C B B USD U nited S ta tes 0 .30 1 2.8 0.0 (4 .6) NM 1.0 x 2.8x 72
is ee media Inc. 1 2/31 /200 8 IE E T S XV C AD C ana da 0 4 .2 1.2 (4 .8) NM 2.6 x - 237
J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .50 1 7.4 12. 6 4 .7 37 .2% 1.1 x 1 1.1 x NA
J umpT V Inc. 1 2/31 /200 8 T S X:J T V TSX C AD C ana da 1 5 0.7 13. 4 (8 .4) -6 2.6% 3.8 x 9.8x 2 ,27 1
K a boos e Inc. 1 2/31 /200 8 T S X:K AB TSX C AD C ana da 0 .58 6 5.9 66. 4 6 .6 9 .9% 3.0 x - NA
K ings oft Co. Ltd. 1 2/31 /200 8 38 88 S E HK HKD C hina 4 52 8.4 120 .1 4 6.3 38 .5% 0.2 x - NA
Lin go M edia Corporation 9 /30 /200 8 T S XV : LM T S XV C AD C ana da 0 .89 9 .3 3.3 (1 .4) -4 2.5% - - 90
Live Wo rld Inc. 1 2/31 /200 8 LV WD OT C P K USD U nited S ta tes 0 3 .1 11. 8 (0 .5) -4 .3% - - 13
Lo okS mart, Ltd. 1 2/31 /200 8 LOOK N as da qG M USD U nited S ta tes 1 .13 1 9.3 65. 0 (2 .0) -3 .1% 4.7 x 1 2.4 x NA
Magnitu de Information S ys tems Inc. 9 /30 /200 8 MA G Y OT C B B USD U nited S ta tes 0 6 .5 0.1 (3 .2) NM 1.1 x 7.1x 2 ,96 9
Mixi, In c. 1 2/31 /200 8 21 21 TSE JPY J apan 427 ,000 .00 66 6.3 119 .3 4 5.4 38 .0% - - 3
Mode rn Times G rou p Mtg AB 1 2/31 /200 8 MT G B OM S EK S weden 166 1,2 63.1 1 ,52 0.5 24 5.3 16 .1% 4.0 x - NA
Moggle , Inc 1 2/31 /200 8 MMOG OT C B B USD U nited S ta tes 2 .30 8 3.5 NM (1 .1) NM 2.9 x 1 0.8 x NA
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 5 .0 1.0 (2 .1) NM 2.0 x 4.4x NA
N E OW IZ G ames C orpora tion 1 2/31 /200 7 A0 956 60 K OS E KR W S outh K orea 55 ,600 .00 40 1.9 135 .5 3 6.4 26 .9% - - NA
N etD rago n W ebS oft, Inc. 1 2/31 /200 8 77 7 S E HK HKD C hina 5 31 9.2 87. 2 3 9.9 45 .7% - - 19
N ete as e.com I nc. 1 2/31 /200 8 NT E S N as da qG S USD C hina 28 .92 3,5 58.7 451 .1 29 3.3 65 .0% - - NA
N eXplo re Co rpora tion 9 /30 /200 7 N XP C OT C P K USD U nited S ta tes 1 3 9.0 NM (4 .9) NM 0.2 x 1.3x 286
N gi G roup Inc. 1 2/31 /200 8 24 97 TSE JPY J apan 30 ,500 .00 3 8.3 100 .0 3 0.8 30 .8% 2.5 x 1 0.0 x 3 ,40 0
N orthgate Te chno lo gies L imited 1 2/31 /200 8 59 005 7 BS E INR India 43 2 9.8 134 .1 2 3.6 17 .6% 0.1 x - 627
Open T e xt Corp. 1 2/31 /200 8 OT E X N as da qG S USD C ana da 35 .13 1,8 23.2 769 .3 19 5.0 25 .3% - - NA
Openwave S ys tems Inc. 1 2/31 /200 8 OP W V N as da qG S USD U nited S ta tes 1 10 0.8 199 .6 (1 0.2) -5 .1% 2.7 x - NA
P e rf ect W orld C o., Ltd. 1 2/31 /200 8 PW R D N as da qG S USD C hina 15 .93 84 0.4 210 .2 11 3.7 54 .1% - - 74
P h otoChann el N etwork s Inc. 1 2/31 /200 8 T S XV : P N T S XV C AD C ana da 2 4 5.5 16. 2 (0 .8) -4 .9% 0.0 x 0.1x NA
Qu epa s a C orp. 1 2/31 /200 8 QP S A N as da qC M USD U nited S ta tes 0 .72 9 .2 0.1 (1 1.4) NM 0.1 x 0.2x NA
OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS USD R us s ia 1 6 9.4 139 .7 1 8.2 13 .1% 0.8 x 6.2x 514
S h anda In teractive E ntertainme nt L td. 1 2/31 /200 8 S N DA N as da qG S USD C hina 44 .46 3,0 84.8 522 .0 23 9.8 46 .0% 1.8 x 1 9.1 x NA
S h utte rf ly, In c. 1 2/31 /200 8 S F LY N as da qG S USD U nited S ta tes 11 26 4.5 213 .5 2 8.4 13 .3% 2.0 x 6.4x 11
S K C ommun ications Co., Ltd. 1 2/31 /200 7 A0 662 70 K OS E KR W S outh K orea 9 ,090 .00 28 0.9 155 .8 1 4.7 9 .4% 1.1 x - 33
S N AP Inte ra ctive , Inc. 1 2/31 /200 8 S T VI OT C B B USD U nited S ta tes 1 7 .6 3.0 0 .9 31 .4% 0.0 x - NA
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K USD U nited S ta tes 0 .00 0 .0 2.0 (0 .7) -3 4.8% 3.4 x 8.1x 3 ,19 7
S o cia l Media V e nures , In c. 1 2/31 /200 8 S MV I OT C P K USD U nited S ta tes 0 0 .0 0.1 (0 .1) -6 0.5% - - 15
S o hu. com Inc. 1 2/31 /200 8 S OH U N as da qG S USD C hina 46 .43 1,7 69.7 429 .1 18 0.5 42 .1% 0.8 x 3.9x 183
S ite s earch C orpo ration 1 /31 /200 9 S T PC OT C B B USD U nited S ta tes 3 2 8.2 NM (1 .1) NM - - 7
S park N etworks , Inc. 1 2/31 /200 8 LOV AME X USD U nited S ta tes 2 .35 4 8.3 57. 3 1 2.3 21 .5% 15.4 x 3 1.4 x 6 ,19 4
S pectrumDN A, Inc. 1 2/31 /200 8 S P XA OT C B B USD U nited S ta tes 0 1 0.2 0.1 (2 .5) NM 0.2 x - 347
T encent Holdin gs L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 63 .90 14,8 48. 6 1 ,04 6.3 51 1.7 48 .9% - - NA
T he P aren t C ompan y 8/2/2008 K IDS .Q OT C P K USD U nited S ta tes 0 0 .5 112 .0 (1 3.5) -1 2.0% - - 310
T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S USD C hina 9 .59 25 7.2 249 .8 8 4.1 33 .7% 4.6 x - 16
T he S treet.com, Inc. 1 2/31 /200 8 TSCM N as da qG M USD U nited S ta tes 2 6 9.0 71. 9 7 .0 9 .7% 0.3 x - 700
T otal S po rt Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 .04 0 .2 2.0 (1 .0) -5 0.6% 0.1 x 2 9.5 x NA
T ree.C om, Inc. 1 2/31 /200 8 TR EE N as da qG M USD U nited S ta tes 6 5 6.7 228 .6 (2 3.9) -1 0.4% 1.0 x 4.5x 1 ,46 9
U nis erve C ommu nication s Co rp. 1 1/30 /200 8 T S XV : US S T S XV C AD C ana da 0 .04 0 .8 24. 2 0 .1 0 .4% 11.3 x - NA
U nited Online Inc. 1 2/31 /200 8 U NT D N as da qG S USD U nited S ta tes 5 39 1.0 669 .4 15 3.9 23 .0% 1.1 x 6.0x 1 ,18 9
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B USD C ana da 0 .08 6 .9 0.6 (0 .5) -7 8.2% - - 4
V a lueC lick Inc. 1 2/31 /200 8 V C LK N as da qG S USD U nited S ta tes 9 80 5.1 625 .8 11 3.6 18 .2% - - NA
V O IS , Inc. 1 2/31 /200 8 V OIS OT C B B USD U nited S ta tes 0 .30 2 .5 0.0 (1 .3) NM 4.5 x - 110
W ebze n Inc. 1 2/31 /200 8 W ZE N N as da qG M USD S outh K orea 3 3 1.2 21. 4 (4 .2) -1 9.8% - - NA
W izza rd S of twa re Corpora tion 1 2/31 /200 8 W ZE AME X USD U nited S ta tes 0 .57 2 6.8 6.1 (6 .0) -9 8.2% - - 1
W oo zyF ly, Inc. 1 2/31 /200 8 W ZY F OT C B B USD U nited S ta tes 0 2 .6 NM NM NM - - NA
W orlds .com In c. 9 /30 /200 8 W DD D OT C B B USD U nited S ta tes 0 .17 8 .9 0.1 NM NM 2.7 x 8.5x 174
W ynds torm C orporatio n NA W YND OT C B B USD U nited S ta tes 0 1 .6 NA NM NM 2.2 x 9.6x NA
XIN G AG 1 2/31 /200 8 O1B C XT R A EUR G ermany 27 .00 17 8.7 45. 1 1 4.4 32 .0% 0.6 x - NA
Y e dangOnline Co rp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 9, 510 11 1.8 51. 5 1 1.5 22 .4% 0.6 x - NA
Y n k K orea Inc. 1 2/31 /200 7 A0 237 70 K OS E KR W S outh K orea 4 ,440 .00 8 .2 14. 7 (1 .1) -7 .6% - - -
ZipLocal Inc. 1 2/31 /200 8 T S XV : ZIP T S XV C AD C ana da 0 0 .3 2.6 (2 .8) NM 39.5 x 3 1.4 x 2 0,22 2
H igh 14,8 48. 6 1 ,520 .5 51 1.7 65 .0% 39.5 x 3 1.4 x 20 ,22 2
Lo w 0 .0 0.0 -23.9 -9 8.9% - - 0
A vera ge 431.5 145 .0 31.9 6 .9% 4.7x 8 .9x 1,074
Median 4 5.5 52. 2 1 .2 17 .6% 1.1 x 7.1x 179
Figure 1. Web 2.0 Universe Summary
Source. Capital IQ

3. Page 3
C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Is April levelling off? Last week closed with 12 financings (month-to-date April) totalling $92.2 million. The month of April
(so far) has registered four deals greater than or equal to $10 million and two deals greater than $15 million. The month of
March registered 22 financings (total $130.7 million, average $5.9 million) compared to 25 financings announced in
February, totalling $185.5 million, or $7.4 million on average (Figure 2). The average value for February was above the
$6.8 million average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and
Offerpal Media) vs. no deals over $15 million in January.
Financing Activity Last Three Months
200.0 7.6
180.0
7.4
160.0
7.2
140.0
7.0
120.0
(US$m)
(US$m)
100.0 6.8
80.0
6.6
60.0
6.4
40.0
6.2
20.0
0.0 6.0
Feb-09 Mar-09 Apr-09
Total Average
Figure 2. Financings, Last Three Months
Source. Company reports
Collective Media largest deal in April: Three weeks into April and Collective Media tops the list with a $20 million raise,
followed by Goom Radio and The Rubicon Project with $16 million and $13 million, respectively (Figure 3). For additional
details, see Figures 23 and 24 (at end of note).

4. (US$m)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Twitter
Kaixin001.com
Collective Media
Source. Company reports
Synthasite
Tremor Media
GOOM Radio
Vidyo
Offerpal Media
Imagini
The Rubicon Project
Buzznet
Figure 3. Capital Market Activity, Last Three Months
Emergent Game
Outbrain
LendingClub
companies raising $63.4 million.
SendMe Inc.
Miva
Auditude
Cellufun
Glam Media
Visible Measures
SuperSecret
Tvtrip
GoViral
ScanScout
Tongxue
Oodle
Greystripe
Wamba
DoubleTwist
OMGPOP
Socialtext
TextDigger
OneSpot
Mixercast
Apture
Simulmedia
Mixpo
FetchDog
Virtual Fairground
Tynt
SoundCloud
AnySource Media
Pixazza
7 Billion People
Financing Summary - Last Three Months
TubeMogul
FamilyLink.com
Tribal Nova
WhistleBox
Sports Composite DE
Outright
Hunch
Bit.ly
Mendeley
Tvinci
Socialcast
Filtrbox
Scan & Target
AdultSpace
MMO Life
Cake Financial
Myngle
33Across
fav.or.it
Three Melons
Apr-09
Mar-09
Feb-09
Page 4
sector, with 12 companies raising over $74.4 million (Figure 4). The video sector has the next highest totals, with eight
Social Networks is the most active sector: Activity over the last three months was busiest in the Social Networks

5. Page 5
Capital Market Activity by Sector - Last Three Months
80.0
70.0
60.0
50.0
(US$m)
40.0
74.4
63.4
30.0
49.9
41.9 41.4
20.0
37.0
22.5 20.0
10.0
16.0 15.0
12.0 12.0
9.0 6.5 5.5 4.3 4.1 4.1 3.9 3.1 2.0 2.0 1.4 1.3 1.3
0.0
Comment/Reputation
Gaming
Visual Commerce
Wiki
Travel
Media
Microblog
Mobile
Publishing
Online Learning
Financial Services
Widget
Lending
Mobile Ad
Search
Infrastructure
Social Networks
Virtual Goods
SAS
Video
Aggregation
Virtual World
Crowdsourced
Ad Network
Analytics
Content
# companies
12 8 6 5 7 2 4 1 3 1 1 1 1 2 1 1 1 1 1 1 1 1 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports
C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Price Performance: Our W eb 2.0 index (market-cap weighted) essentially mirrored the performance of the NASDAQ
composite index from mid 2008 until recently when it has moved higher than the NASDAQ index (Figure 5).

6. Page 6
Web 2.0 Index Price Performance
140
120
100
80
60
40
20
0
4/21/2008
5/5/2008
5/19/2008
6/2/2008
6/16/2008
6/30/2008
7/14/2008
7/28/2008
8/11/2008
8/25/2008
9/8/2008
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
^COMP - Share Pricing Index: Web 2.0 X (Market Cap)
Figure 5. Web 2.0 Price Performance
Source. Capital IQ
A positive week: Most of the companies in our universe had positive stock price performances over the past week (for
stocks with prices greater than $1) (Figure 6), with 19 companies showing positive returns on the week. DigitalTown Inc.
(DGTW -OTCBB) led the group with a 20% return over the past week. The9 Ltd. (NCTY-NasdaqGS) had the worst return,
dropping 27.6% in the week after news of its losing the license to operate W orld of W arcraft in China.

7. Page 7
1 Week P rice P erformance
DigitalTow n, Inc. 20.0%
K ings of t Co. Ltd. 17.6%
B ey ond Commerce, Inc. 17.2%
DA DA S pA 16.3%
NetDragon WebS oft, Inc. 12.5%
Ngi G roup Inc. 11.3%
A Q Interac tive, Inc. 11.1%
CDC Corp. 11.1%
10.9%
Mix i, Inc.
G igaMedia Ltd. 10.4%
Frogs ter Interac tive Pictures A G 8.2%
Modern Times G roup Mtg A B 6.8%
TheS treet. com, Inc. 6.6%
S park Netw orks , Inc. 4.4%
Tencent Holdings Ltd. 3.4%
Tree.Com, Inc. 3.3%
G ameOn Co Ltd. 0.9%
G iant Interactive G roup, Inc. 0.4%
Open Tex t Corp. 0.1%
Cy berplex Inc. 0.0%
Neteas e.c om Inc. -1.5%
S hutterf ly , Inc. -2.2%
IA C/InterA ctiveCorp. -2.5%
PhotoChannel Netw orks Inc. -3.5%
G ree, Inc. -3.9%
X ING A G -4.5%
LookS mart, Ltd. -5.0%
Perf ect World Co., Ltd. -6.2%
S ohu.com Inc. -7.1%
Webz en Inc. -8.0%
V alueClick Inc. -8.2%
Openw ave S y s tems Inc. -9.7%
United Online Inc. -11.2%
S handa Interactive -14.8%
The9 Limited -27.6%
-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%
Figure 6. 1-Week Price Performance
Source. Capital IQ

8. Page 8
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
B lizz a rd E ntertainment to P artner with N etea se in B lizz a rd E nterta i nment I nc. and N eteas e. com I nc . a nnounced that B lizz ard E ntertainment(R )'s W orld of W arcraft(R ) will be lic ens ed to an
B lizzard E n tertainment, Inc . ;
Ma inland China on W orld of W a rcraft(R ) a ffilia ted c ompa ny of NetE a se. com Inc. in mainl a nd C hina for a te rm of 3 y ears following the expira tion of the current l icens e agreement.
Neteas e. com Inc. (Nas daqG S : NT E S )
B oth companies a nnounc ed a pa rtnership on B lizz a rd E nterta inment's W a rcraft(R ) I I I, S tarCra ft(R ) II , a nd B attle.net(R ) gaming pla tform last
summer. Announce ment furth er enha nc es the pa rtnership between B li zza rd E nterta inment and NetE as e a nd promotes a cons is tent lev el of
quality a nd serv ic e in ma i nland C hina for a ll B liz zard E ntertainment games involv ed in the partnership.
T he Dis trict C ourt Atta ches As sets of O AO R B C T he Dis tric t C ourt of the city N icos ia ha s su stained the claim of B a nk of Mos cow to attach a s sets of O AO R B C Information S ys tems
E DI S PR E S S Holdin g; OAO R BC
Information S ys tems (R TS : R B C I); R BC Informa tion S ys tems , E D I S P R E S S Holding, R B C registered in Cy prus , including E D I S P R E S S Holding, R B C I nves tments (Cy prus) L td. a nd Ad Net Ltd. T his attac hment is an i nterloc utory
Inv estments (C yprus ) Ltd. a nd Ad Net L td injunction on the lawsuit filed by B a nk of M oscow against the media holding in M a rch 2009 to the L ondon C ourt of I nternational Arbitration.
Inves tments (Cyprus ) L td.
B a nk of Mos cow is a la rge holder of CL N is s ued by R B C Inves tments in D ecember 2007 agains t a credit of B a rclay s Ca pital B a nk for th e
sum o f $45 million (E UR 33. 54 million). T he pa per ma tured in Nov ember 2008.
O pen T ext and E ndeca P artner to Deliv er U nprecedented E ndeca Technologies I nc . a nd O pen Tex t Corp. a nnounced a formalized partners hip to deliver E ndeca's D igita l As set Na viga tor solution on
E ndec a T ec hn olog ies , Inc.; Open Text
Digita l Ass et R eus e O pen T ext D igital Media G roup's E nterprise Media Ma na gement S olution. T he joint offering is designed to provide media , publis hing and
C orp. (Nas daqG S : OTE X)
retail orga nizations with a n unprecedented a bility to cut cos ts and s treamline operations b y reusing exis ting digita l a s sets , suc h as audio,
video, a nd images that a re s tored in hous e instea d of recreating or purc ha sing new ass ets .
F inancia l Media G roup, Inc . a nnounc ed dela y ed 10-Q O n 04/14/2009, F ina nc ia l M edia G roup , Inc. announced tha t they will be una ble to file their nex t 10-Q by the deadline required by th e S E C .
F inanc ial Media G roup, Inc .
filing
(OT CB B: F N G P)
P a rty G aming E yeing G igamedia P a rty G a mi ng P lc is reportedly in ta lk s with G iga media Ltd. for a poss ible merger or takeover o f E veres t P ok er bra nd. G igamedia , which has
G igaMedia L td. (Nas daqG S : G IG M);
a ma rket value of $363 million, is believed to ha ve a ppointed G oldma n S a chs to look for a buyer for the whole company or simply its E v erest
P artyG amin g Plc (L S E : PR TY)
poker brand. P arty G a ming is among a s mall number of parties thought to be negotiating with G iga media. O ne potential ba rri er to a full
merger coul d be the unwillingnes s of G iga media sha reholders to hold s toc k in a L ondon-li sted c ompa ny. A P arty G aming s pokes man s aid:
quot;W e hav e ma de it very clea r we believe the industry will c onsolidate a nd we will look a t opportunities as a nd when they a ris e.quot; G igamedia
told inves tors la st month it wa s quot;in discus sions with s everal interes ted parties concerning the poss ibility of a strategic merger or a sal equot;.
J umpT V U nveils P remier L atin O nline T elevisi on S erv ice J umpTV I nc. annou nced the launc h of J umpTV L atino, a n online destination for L atin America n telev ision with prominent new features .
J u mpTV Inc . (TS X : J TV)
J umpTV L atino is a s ubscription-ba sed service that provides the la rgest s election of live and on-demand L atin Americ an televis ion channels
a va ila ble via the I nternet, providing viewer's one c entra l pla ce to a ccess L atino enterta inment. T he onli ne des tina tion continues to s erve
exis ting JumpT V s ubs cribers and offers a key hot spot for new v iewers with a sleek new look and feel, enha nc ed video ex perience a nd
improved c us tomer s upport. J umpT V La tino is a dua l language destination tha t features up to 30 top La tin American cha nnels from C hile (T V
Chile), P eru (America TV ), Colombia (C arac ol T V and T V C olomb ia), Argentina (Tele fe Internacional), V enezuela (Meridiano TV ), B olivia,
E cua dor, G uatemala , Mex ico, P ara guay, D omin ican R epublic and U rugua y.
L ingo M edia C orporation announced delay ed 2 0-F filing O n 04/17/2009, L ingo M edia C orpora tion a nnounced tha t they will be unable to fi le their nex t 20-F by th e dea dline required by the S E C.
L ing o Media C orporation (TS XV: L M)
L ionbridge T ec hnologies Inc. Announces P a rtnership with L ionbridge T echnologi es Inc. announced a n alliance wi th O pen T ext C orp. W ith the alliance, joint c us tomers of O pen Tex t and L ionbridge
L ion bridge Tech nologies In c.
O pen T ext C orporation to S treamline R egula tory can now streamline the dev elopment, implementa tion and integration of regula tory complia nc e s olutions by combining expert development
(Nas daqG M:LIOX); Open Text C orp.
Complia nc e S olutions for P ha rmac eutic al Compa nies services from L ionbridge together with innov ativ e enterpris e c ontent ma na gement s olutions from O pen T ext. P ha rmac eutical companies a nd
(Nas daqG S : OT E X)
other orga nizations need a complete, relia ble s olution for managing enterprise content within a complex regula tory c omplia nce env ironment.
NetDragon W ebS oft, I nc. , 0. 11 (H K D), Ca s h D ividend, NetDragon W ebS oft, I nc. , 0. 11 (H K D), C a sh Di vidend, Apr-15-2009
NetDrago n W ebS oft, Inc. (S E HK :777)
Apr-15-2009
O pen T ext E xpands C ontent S ec urity O ffering with O pen T ext C orp. announced the immediate a va ila bi lity of its la test C onnec tiv ity s olution, O pen T ext S O CK S Client, an enterpris e-gra de
Open T ext C orp. (Nas daqG S : OT E X)
R elea s e of S O CK S C lient S O CK S V 4 a nd V 5 client, tha t a s sis ts organiza tions to transparently and c os t-effectively s ecure thei r enterprise content applica tions over
T C IP /IP network s. P rotec ting confidential and miss ion critical applica tion content ha s bec ome a strateg ic priority for many organiz ations
thes e da y s. Unfortunately, ma ny homegrown or v endor a pplications have not been built to opera te with network firewa lls and proxies forcing
a dminis tra tors to lea ve gaping holes in their s ecurity infra structures . S O CK S is an industry s ta ndard security protoc ol tha t facilitates the
routing of network traffic throu gh firewalls and proxy s ervers . T he O pen Tex t S O C K S C lient ca n dy na mica lly 'sock s-enable' enterpris e
a pplications without requiring changes to their c ode. A rules -bas ed engine a llows adminis trators to decide which applica tion tra ffic shoul d be
sec ured, ins tantly enabling i t to trav erse S O C K S prox ies and firewa ll s.
S pec trumDN A, I nc. E lects R ebecc a D . Hers hinger a s O n April 13, 2009, the B o ard of D irectors of S pec trumD NA, I nc. elected R ebec ca D. H ers hinger as C hief F inancia l O fficer of the compa ny,
S pec trumDNA, Inc . (OTC BB :S PXA)
Chief F ina nc ial O fficer effective immedi a tely . Ms . Hers hinger, a ge 35, ha s been an employ ee of the compa ny sinc e J uly 2008 s erving as V ice P res ident of F inance
a nd C orpora te Development. P rior thereto, a nd from 2007 to 2008, she provided financia l a nd s tra tegy consulting serv ices to K urt S a lmon
Ass ocia tes a nd S pectrumDN A, I nc.
Figure 7. Key Developments
Source. Capital IQ

9. Page 9
VALUATION
MMOG companies lead market-cap charts: Nine companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Sixty-four of the 92 companies have market caps under US$100 million, with 28 under $10
million. Online gaming companies dominate the top of the list.
Market C ap (US D m)
Tencent Holdings L td.
3558. 7
Neteas e. com Inc.
3084.8
S handa Interac tive Entertainment L td.
2281.9
IA C/InterA ctiv eCorp.
Open Tex t Corp. 1823.2
S ohu. com Inc. 1769.7
G iant Interac tiv e G roup, Inc. 1717. 6
Modern Times G roup Mtg A B 1263.1
1242.7
G ree, Inc.
840.4
Perf ec t World Co. , L td.
805. 1
V alueClic k Inc.
666.3
Mix i, Inc.
K ings of t Co. L td. 528.4
Chines e G amer International 471. 1
NEOWIZ G ames Corporation 401.9
United Online Inc. 391.0
G igaMedia L td. 368.5
319.2
NetDragon WebS of t, Inc.
280.9
S K Communications Co. , L td.
264.5
S hutterf ly, Inc.
The9 Limited 257.2
X ING A G 178.7
CDC Corp. 151.0
G amania Digital Entertainment Co. , L td. 143. 2
G ungHo Online Entertainment, Inc. 142. 4
111. 8
Y edangOnline Corp.
104.4
DA DA S pA
100.8
Openw ave S y s tems Inc.
94. 0
A c toz S of t Co. , L td.
G ameOn Co L td. 92. 2
Moggle, Inc 83.5
DigitalTow n, Inc. 81.2
OA O R B C Inf ormation S y s tems 69. 4
69. 0
TheS treet.c om, Inc.
68. 5
HanbitS of t, Inc.
65. 9
K aboos e Inc .
62.0
B eyond Commerc e, Inc .
Tree. Com, Inc. 56.7
Cyberplex Inc. 52.2
J umpTV Inc. 50.7
S park Netw orks , Inc . 48.3
G eoS entric Oyj 46.3
45.5
PhotoChannel Netw orks Inc.
39. 0
NeXplore Corporation
38. 3
Ngi G roup Inc.
38. 2
B roadWebA s ia Inc.
Webz en Inc. 31.2
Northgate Tec hnologies Limited 29.8
S ites earc h Corporation 28.2
G ravity Co., L td 27.2
26.8
Wiz z ard S of tw are Corporation
26.6
Dolphin Digital Media, Inc.
26.5
A Q Interac tiv e, Inc.
25.4
Frogs ter Interac tive Pic tures A G
Eolith Co. L td. 21.9
DX N Holdings B hd 19.8
L ookS mart, L td. 19.3
J umbuck Entertainment Pty L td. 17.4
IA S Energy, Inc . 17.2
14. 9
Fluid Mus ic Canada, Inc .
14. 2
Ex tens ions , Inc .
13. 4
A c celeriz e New Media, Inc.
IdeaEdge, Inc. 12. 8
S pec trumDNA , Inc. 10. 2
L ingo Media Corporation 9. 3
Quepas a Corp. 9. 2
Worlds . com Inc . 8. 9
8. 2
Y nk K orea Inc.
7. 6
S NA P Interac tiv e, Inc.
6. 9
UOMO Media, Inc
6. 5
Magnitude Inf ormation S y s tems Inc.
CornerWorld Corporation 6. 4
MOK O.mobi Limited 5. 0
B right Things plc 5. 0
is eemedia Inc. 4. 2
4. 1
B etaw av e Corporation
3. 1
L iv eWorld Inc.
2. 6
Wooz y Fly, Inc.
2. 5
V OIS , Inc.
Wy nds torm Corporation 1. 6
DigitalPos t Interac tiv e, Inc. 1. 1
Unis erve Communic ations Corp. 0. 8
B igs tring Corp. 0. 7
The Parent Company 0. 5
0. 4
Financ ial Media G roup, Inc .
0. 3
ZipL oc al Inc.
0. 2
Total S port Online A S
A s s oc iated Media Holdings Inc. 0. 1
China G atew ay Corporation 0. 0
S NM G lobal Holdings 0. 0
Dibz International, Inc. 0. 0
S ocial Media V enures , Inc . 0. 0
0 500 1,000 1,500 2,000 2,500 3, 000 3, 500 4,000