Video companies led financing activity over the last three months, with 13 video companies raising nearly $100 million. Social networking companies were the next most active sector, with nine companies raising $46.7 million. The report identifies 89 public Web 2.0 companies with a combined market cap of $27.8 billion across a variety of sectors including gaming, social networking, media sharing, and social lending.
Month-to-date financings in May totalled $106.6 million; led by the $20
million One Net financing. So far, there have been 18 financings in May,
with 10 deals greater than $5 million and only five less than $5 million.
There have been two financings greater than $10 million (Cyberplex and One
Net), with the capital raises by Imeem and EveryZing close behind at $8.8
million and $8.3 million, respectively. The average value thus far in May is
$5.9 million, slightly below the average value for April of $6.5 million on
21 financings. The March average was $6.6 million on 24 financings. Except
for two deals (Kaixin001.com and Collective Media), all were below $20
million for the last three months and a total of four deals were greater
than or equal to $15 million.
*One Net’s $20 million financing is largest deal in May: *One Net announced
a $20 million financing last week, the largest deal so far in May. Ten of
the 18 deals in the month are equal to or greater than $5 million. For
additional details, see Figures 23 and 24 (at end of note). Also note that
the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred
in May. E-bay had bought StumbleUpon for $75 million.
*A strong price performance week: *The companies in our universe had
relatively strong stock price performances over the past week (for stocks
with prices greater than $1) (Figure 6), with 31 companies showing positive
returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a
49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping
35.0% in the week.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.
Deal round-up for April: The large deal highlights for the month include:
Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.
Month-to-date financings in May totalled $106.6 million; led by the $20
million One Net financing. So far, there have been 18 financings in May,
with 10 deals greater than $5 million and only five less than $5 million.
There have been two financings greater than $10 million (Cyberplex and One
Net), with the capital raises by Imeem and EveryZing close behind at $8.8
million and $8.3 million, respectively. The average value thus far in May is
$5.9 million, slightly below the average value for April of $6.5 million on
21 financings. The March average was $6.6 million on 24 financings. Except
for two deals (Kaixin001.com and Collective Media), all were below $20
million for the last three months and a total of four deals were greater
than or equal to $15 million.
*One Net’s $20 million financing is largest deal in May: *One Net announced
a $20 million financing last week, the largest deal so far in May. Ten of
the 18 deals in the month are equal to or greater than $5 million. For
additional details, see Figures 23 and 24 (at end of note). Also note that
the spin-off of StumbleUpon from E-bay on a $29 million valuation occurred
in May. E-bay had bought StumbleUpon for $75 million.
*A strong price performance week: *The companies in our universe had
relatively strong stock price performances over the past week (for stocks
with prices greater than $1) (Figure 6), with 31 companies showing positive
returns on the week. OpenWave Systems (NASDQ:OPWV) led the group with a
49.2% return, while DigitalTown (OTCBB:DGTW) had the worst return, dropping
35.0% in the week.
LATTER HALF OF 2009: FORGING FORWARD
DEAL VALUE ON PACE TO MEET NOVEMBER LEVEL
December starts at strong pace: Total transaction value in the Web 2.0 universe for the first week of December is $68.8 million. The number of financings stands at seven, averaging $9.8 million each. In comparison, total capital raised in November was $203.4 million, averaging $11.3 million (18 deals); October was $171.3 million, averaging $6.3 million (27 deals); and September was $232.8 million, averaging $9.0 million (26 deals).
Broad-based sector financing: Video, Gaming, Advertising, Collaboration, and Analytics experienced the most financing activity among our Web 2.0 sector categories in the past three months by number of transactions (six each). Social Networks remain strong with five deals in the past quarter. Infrastructure and Search round out the top three positions at four deals each over the past three months. The $400 million acquisition of Playfish skews the Virtual Worlds segment to the highest total.
Market pull-back abates – universe split between risers and decliners: Twenty-five companies in our universe had positive stock price performances over the past week (for stocks with prices greater than $1), while 22 companies showed negative 1-week returns.
April on track to be record month?: Total transaction value in the Web 2.0 universe April-to-date is $726.1 million. The number of financings stands at 40 averaging $18.2 million each. Note that this includes the $300 million investment in DST by Tencent. Even excluding this transaction, the average is $15.2 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals. The highest monthly total in our Web 2.0 financing database was April 2008 with a total of $765.5 million raised in 47 transactions.
Deal round-up for April: The large deal highlights for the month include:
§
•Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
•Warner Bros. acquired gaming company, Turbine, for $160 mm.
•Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bullish week for Web 2.0: Sixty-nine percent of the companies in our universe had increased or flat market caps over the past week, sixty-nine percent had increased EV/Revenue multiples, 75% had increased or flat EV/EBITDA multiples and 73% had increased or flat P/E mutliples .
April 2010 a record month for Web 2.0 Financing: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $808.2 million - the highest monthly total we have recorded. The number of financings was also a record, at 48, averaging $16.8 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $9.6 million. In comparison, total capital raised in March was $168.1 million, averaging $5.4 million over 31 deals.
Deal round-up for April: The large deal highlights for the month include:
Tencent invested $300mm in DST (investor in Facebook, Zynga, Groupon).
Apple acquired Siri, a mobile local search developer for a rumoured $225 mm.
DST acquired ICQ, the instant messaging company, for $187.5 mm.
Warner Bros. acquired gaming company, Turbine, for $160 mm.
DST invested $135mm in social-shopping service Groupon.
Salesforce.com acquired crowd-sourced personal contact service, Jigsaw, for $142 mm.
Ankeena Networks, media infrastructure solution provider was acquired by Juniper for $100mm.
Bearish week: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 60% of the companies.
Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million.
Deals (M&A, Finance)
Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.
Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.
Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.
Social networking software developer based in France, Pearltrees, raised $1.6 mm.
PapayaMobile, mobile application software company based in China, raised $4 mm.
Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Negative price performance
The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
Web 2.0 Weekly - Aug. 4, 2010: "Playdom is going to Disney World"David Shore
Deals (M&A, Finance) – Disney Gets In To Social/Mobile Video Games
Disney acquired social and mobile game developer, Playdom, for $563 mm in upfront consideration and the potential for $200 mm in further earn-out based consideration. Disney management notes that the company continues to be on the acquisition war path.
The largest deals in the week involved (wait for it…) the advertising sector, with $15 mm in follow-on financings to eXelate and AdMeld, and $8 mm to BuzzLogic.
Four different social network/media companies received financing in the week, including, Hot Potato (acquired for $10 mm by Facebook), PlacePop ($1.4 mm round), Rapportive ($1 mm seed round), and dating site, Triangulate ($0.75 seed round).
Price Performance - Web 2.0 Valuation Reverse Course and Head Upward
The Web 2.0 public company universe was positive this week with 47% of stocks rising, 46% falling, and 7% flat.
Web 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"David Shore
Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Web 2.0 Weekly - May 26, 2010: "Market Declines Impact Web 2.0 Universe Valua...David Shore
May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million.
Deals (M&A, Finance)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm.
Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.
Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million.
Deals (M&A, Finance)
Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range).
The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space).
A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing).
Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm.
Price performance turns positive
The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.
Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"David Shore
Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Price Performance
Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
Slow start in May after record April: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $813.5 million - the highest monthly total we have recorded. The number of financings was also a record, at 49, averaging $16.6 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $10.7 million. May 2010, in contrast, has started slowly, with only $37.4 million in financing announced thus far, averaging just $3.4 million across 11 deals. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals.
Deal round-up for May: The large deal highlights for the month include:
Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of sensorial marketing solutions) for €160 mm.
Lithium is purchasing analytics developer, Scout Labs, for $20 mm.
Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm.
Groupalia, the Spanish answer to online group discount retailers, Groupon and LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters have been raising money quickly (DST invested $135 mm in Groupon in April) with a total of $222 mm in funding coming to just these three players thus far.
Bearish week again: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 70% of the companies.
The fourth week of April had only a marginal number of capital raises (four)
and not enough to push the month above March and February levels. Total
financings (month-to-date) were $102.3 million, with February and March
closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a
total of 16 deals closed, with the $20 million raise by Collective Media and
$16 million by GOOM Radio being major contributors. Most of the companies in
our universe had positive stock price performances over the past week (for
stocks with prices greater than $1), with 22 companies showing positive
returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with
a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return,
dropping 21.7% in the week. Two companies had better than 20% price
increases last week.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
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%.
In the first week of May, $38.9 million was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 million on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. With any sustainable certainty and stability in the public markets, we would expect to see activity pick up as more institutions participate in private placements. Seven companies raised $38.9 million in the first week of May. EveryZing, a company in the video search sector, raised $8.3 million, followed by Gist at $6.8 million. All transactions except one (Resonate Networks) were greater than or equal to $5 million. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
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Web 2.0 Weekly - June 22, 2010: "AOL Sells Bebo for Massive Loss"David Shore
Deals (M&A, Finance)
AOL is reported to have sold Bebo, the UK-based social network it bought just two years ago for $850 mm, to private equity firm Criterion Partners for under $10 mm. Based on our calculations, AOL paid the equivalent of $38 per Unique Visitor (UV) for Bebo, and sold it for under $1 per UV.
Positive price performance
The Web 2.0 public company universe rose again this week, with 60% of companies seeing their market cap rise vs. 33% falling and 7% flat.
June financing well ahead of average: Financing in the Web 2.0 universe in June was the third highest month (over the past 12) with total transaction value (excluding M&A) of $459.6 million from 51 transactions, averaging $9.0 million each - led by the $147 million Zynga financing. In comparison, total capital raised in June 2009 was $226.3 million, averaging $4.5 million over 50 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$260 million.
Deals (M&A, Finance)
Alloy, a provider of news and commentary concerning New Media, was acquired by ZelnickMedia for $127 mm.
Facebook’s implied valuation rose to $24 bn as Elevation Partners purchased 5 mm shares of the company for $120 mm in the secondary market.
Danish Skype competitor, Vopium, received $16.5 mm in financing from Indian financier, Raghuvinder Kataria.
Social networking software developer based in France, Pearltrees, raised $1.6 mm.
PapayaMobile, mobile application software company based in China, raised $4 mm.
Two Israeli mobile developers received funding this week, including Perfecto Mobile ($4 mm) and Snaptu ($6 mm).
Negative price performance
The Web 2.0 public company universe fell this week, with 68% of companies seeing their market cap fall vs. 25% rising and 7% flat.
Web 2.0 Weekly - Aug. 4, 2010: "Playdom is going to Disney World"David Shore
Deals (M&A, Finance) – Disney Gets In To Social/Mobile Video Games
Disney acquired social and mobile game developer, Playdom, for $563 mm in upfront consideration and the potential for $200 mm in further earn-out based consideration. Disney management notes that the company continues to be on the acquisition war path.
The largest deals in the week involved (wait for it…) the advertising sector, with $15 mm in follow-on financings to eXelate and AdMeld, and $8 mm to BuzzLogic.
Four different social network/media companies received financing in the week, including, Hot Potato (acquired for $10 mm by Facebook), PlacePop ($1.4 mm round), Rapportive ($1 mm seed round), and dating site, Triangulate ($0.75 seed round).
Price Performance - Web 2.0 Valuation Reverse Course and Head Upward
The Web 2.0 public company universe was positive this week with 47% of stocks rising, 46% falling, and 7% flat.
Web 2.0 Weekly - July 27, 2010: "July Financings - Approaching High for 2010"David Shore
Deals (M&A, Finance)
Jive Software received the biggest investment of the week at $30 mm, bringing its total capital raised to date to $57 mm – the company brings social network-like functions to the realm of enterprise collaboration.
Advertising networks continue to receive the most attention among sectors we track – this week, $24.6 mm in financings were announced, including sports-related ad network Sportgenic (acquired by Glam Media for $12 mm), and TurnHere ($12.6mm in Series B funds).
Rumour alert – we continue to hear more frequent buzz concerning the potential acquisition of social gaming developer Playdom by Disney.
Synchronica (AIM:SYNC) intends to acquire iseemedia (TSXV:IEE) for C$8.8 mm in stock – both companies are engaged in mobile communications development, such as email-to-SMS.
Price performance turns positive
The Web 2.0 public company universe was positive this week, with 54% of companies seeing their market cap rise vs. 34% falling and 12% flat.
Web 2.0 Weekly - May 26, 2010: "Market Declines Impact Web 2.0 Universe Valua...David Shore
May tracking to average monthly levels: After a slow start to the month, financing in the Web 2.0 universe has rebounded and is now on track with prior months. Total transaction value (excluding M&A) in the Web 2.0 universe for May (month-to-date) is $189.9 million from 30 transactions, averaging $6.3 million each. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals. Excluding May 09, Dec 09 and Apr 10, the average monthly total is $212 million.
Deals (M&A, Finance)
Cyberplex (TSX:CX) announced plans to acquire Tsavo Media for US$75.6 mm, partially funded through a C$30 mm bought deal financing at $0.55.
Online gaming company Gaikai, raised $10.0 mm in Series B financing.
Blip.TV, online TV provider, raised $10.1 mm in Series C financing.
Financial Results/Guidance
Netease.com (NasdaqGS:NTES, online gaming) reported Q1/F10 revenue of RMB 1.2 bn (vs. RMB 781.7 mm in the same period last year).
Snap Interactive (OTCBB:STVI, online dating) reported Q1/F10 revenue growth of 20% to $0.927 mm from $0.768 mm.
Bearish week again: Price performance was largely negative in our Web 2.0 universe. This impacted valuation multiples, which fell for ~80% of the companies in our universe.
Google/Zynga deal drives July financing results: After starting very slowly (just one deal announced in the prior week) July financing increased substantially as a result of the Google/Zynga financing ($100-200 million). Total raised month-to-date is $158.8 million over 12 deals - averaging $13.2 million each. In comparison, total capital raised in July 2009 was $206.5 million, averaging $5.3 million over 39 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$280 million.
Deals (M&A, Finance)
Google invested a rumoured $100-$200 mm in social game developer, Zynga, bringing that company’s total funding to almost $500 mm (assuming the lower end of the range).
The Gaming sector remains hot – along with Google’s investment in Zynga, The9 Ltd. (Chinese online game developer and operator) invested $5 mm in Delaware-based Aurora Feint (focused on gaming for the mobile space).
A triad of financings in the Social Commerce space this week, including Beyond the Rack ($12 mm), ThredUP ($1.7 mm), and BuyWithMe ($16 mm in a Series B financing).
Sysomos, Canadian social media monitoring firm, was acquired by MarketWire for between $25 mm and $35 mm.
Price performance turns positive
The Web 2.0 public company universe rose this week, with 58% of companies seeing their market cap rise vs. 32% rising and 10% flat.
Web 2.0 Weekly - Aug. 10, 2010: "Consolidation by Google"David Shore
Deals (M&A, Finance) – Consolidation by Google
Google confirmed or announced two acquisitions during the week, including Jambool
($70 mm) involved in virtual goods monetization processes, and widget market, Slide
($182 mm).
In other acquisition-related news, Forbes sold investment media website Investopedia to ValueClick for $42 mm. Zynga acquired Japanese mobile app and game developer,
Unoh, for an estimated $29 mm. Finally, dubbed “the Spanish Facebook,” social
networking site, Tuenti, was acquired by Telefonica in a $99 mm deal.
The largest financing (aside from the aforementioned M&A activity) involved “the
Chinese Youtube,” Tudou, raising $50 mm in Series E funds.
Price Performance
Distinctly negative price momentum, with 49% of stocks falling over the past week (after 48% of stocks declines last week, and 51% declined the week prior).
Slow start in May after record April: Total transaction value (excluding M&A) in the Web 2.0 universe for April was $813.5 million - the highest monthly total we have recorded. The number of financings was also a record, at 49, averaging $16.6 million each. Note that this includes the $300 million investment in DST by Tencent. Excluding this transaction, the average is $10.7 million. May 2010, in contrast, has started slowly, with only $37.4 million in financing announced thus far, averaging just $3.4 million across 11 deals. In comparison, total capital raised in May 2009 was $375.0 million, averaging $12.5 million over 30 deals.
Deal round-up for May: The large deal highlights for the month include:
Fluid Music (TSX:FMN, digital music distributor) will acquire Mood Media (provider of sensorial marketing solutions) for €160 mm.
Lithium is purchasing analytics developer, Scout Labs, for $20 mm.
Fatfoogoo (purveyor of virtual goods) is being acquired by Digital River for $10 mm.
Groupalia, the Spanish answer to online group discount retailers, Groupon and LivingSocial, raised $2.5 mm in a Series A financing – the online group discounters have been raising money quickly (DST invested $135 mm in Groupon in April) with a total of $222 mm in funding coming to just these three players thus far.
Bearish week again: Price performance was largely negative in our Web 2.0 universe, with prices dropping for over 70% of the companies.
The fourth week of April had only a marginal number of capital raises (four)
and not enough to push the month above March and February levels. Total
financings (month-to-date) were $102.3 million, with February and March
closing off at $185.5 mm and $159.5 mm, respectively. As of last week, a
total of 16 deals closed, with the $20 million raise by Collective Media and
$16 million by GOOM Radio being major contributors. Most of the companies in
our universe had positive stock price performances over the past week (for
stocks with prices greater than $1), with 22 companies showing positive
returns on the week. Modern Times Group Mtg AB (MTG B-OM) led the group with
a 27.7% return, while DigitalTown Inc. (DGTW-OTCBB) had the worst return,
dropping 21.7% in the week. Two companies had better than 20% price
increases last week.
New royalty agreement for webcasting & copyright firms: SoundExchange, a nonprofit royalty collecting organization associated with the Recording Industry Association of America (RIAA) agreed this past week to a new deal regarding royalty rates for webcasting. Under the new agreement, large commercial webcasters will pay up to 25% of their revenue to copyright holders – well below the 70% that could have been imposed under an earlier deal. While the deal was initially agreed to by three smaller Internet radio webcasters, Pandora Media, the third largest radio site (according to Alexa), also indicated it would sign on to the agreement.
Online Media companies lead financing: Two online media companies – Pandora (Internet Radio) and QuickPlay (Mobile Video) have secured the largest financing transactions thus far in July ($35 million and $12 million respectively). Total capital raised so far in July is $66.1 million through eight transactions, averaging $8.3 million per transaction. June closed with $180 million in financing on 36 transactions. The averages for the months of May (excluding the Facebook transaction) and June were $6.4 million and $4.7 million, respectively.
A weak price performance week: The companies in our universe had weak stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 30 companies showing negative returns on the week. Gravity (NasdaqGM: GRVY) led the group with a 33% return, while GungHo (3765-OSE) had the worst return, dropping 26.4% in the week.
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%.
In the first week of May, $38.9 million was raised on seven deals. Over the last three months, four sectors, Media, Ad Network, Video, and Social Network, have seen the most activity, bringing in a combined $209 million on 25 transactions. Overall, capital market activity has trended downwards on the back of a declining economy and lower valuations. With any sustainable certainty and stability in the public markets, we would expect to see activity pick up as more institutions participate in private placements. Seven companies raised $38.9 million in the first week of May. EveryZing, a company in the video search sector, raised $8.3 million, followed by Gist at $6.8 million. All transactions except one (Resonate Networks) were greater than or equal to $5 million. The companies in our universe had mixed stock price performances over the past week (for stocks with prices greater than $1) (Figure 6), with 22 companies showing positive returns on the week. Tree.com (TREE-NASDAQ) led the group with a 27.5% return, while Beyond Commerce, Inc. (BYOC-OTCBB) had the worst return, dropping 21.8% in the week.
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Web 2.0 Weekly - July 20, 2010: "DST Cashing Up"David Shore
Large deals drive July financing to near record levels: With another huge financing (DST - see below) July financing is near record monthly levels. Total raised month-to-date is $742.6 million over 29 deals - averaging $25.6 million each. Excluding the Zynga ($100 million) and DST ($388 million) deals, the average deal size is $9.4 million. In comparison, total capital raised in July 2009 was $209.0 million, averaging $5.2 million over 40 deals. The monthly median total is ~$280 million with a median deal size of $8.1 million.
Deals (M&A, Finance)
Naspers, a South African media and print conglomerate, invested $388 mm in Digital Sky Technologies, the Russian digital media holding company with significant stakes in Facebook, Groupon, Mail.ru, and Zynga.
The next biggest raise of the week was Australian enterprise software developer, Atlassian, receiving $60 mm in Series A funds from Accel Partners.
Social Commerce continues to garner attention – this week BlueSwarm ($0.8 mm angel round) and Shopkick ($15 mm Series B round) raised money.
Another $31 mm in venture funds found their way to Advertising-related start-ups, including Israel-based Adsmarket ($17 mm), as well as a pair of India-based companies – Komli Media ($6 mm) and InMobi ($8 mm).
Price performance split
The Web 2.0 public company universe was split this week, with 48% of companies seeing their market cap fall vs. 43% rising and 9% flat.
Summer financing doldrums: After a very strong June (with total transaction value (excluding M&A) of $542.8 million from 66 transactions, averaging $8.4 million each), July has started very slowly with only one small financing announced. However, we have seen some large M&A transactions (see below). In comparison, total capital raised in July 2009 was $206.2 million, averaging $5.4 million over 38 deals. Excluding Dec 09 and Apr 10, the average monthly total is ~$270 million.
Deals (M&A, Finance)
Google, acquired ITA Software, search provider for the travel industry for $700 mm.
infoGROUP, provider of business and consumer databases for sales leads, mailing lists, direct marketing, database marketing, e-mail marketing, and marketing research solutions, was taken private for $645 mm by CCMP Capital Advisers.
GroupSpaces, a provider of web-based tools for sports clubs, university societies, organizations, and groups of friends or coworkers, raised $1.3 mm.
Domain based online advertising services provider, OCTANE360, was acquired by Local.com for $10.9 mm.
Negative price performance
The Web 2.0 public company universe fell again this week, with 61% of companies seeing their market cap fall vs. 27% rising and 12% flat.
A presentation given at Web 2.0 Expo 2011 in San Francisco, CA, on March 30, 2011.
A year has passed since the release of Apple’s iPad, and with it, new opportunities for developers, content publishers, and entrepreneurs, have clearly emerged. We now have a proven market for a third type of mobile, Internet-enabled device – more intimate than a laptop and more expansive than a smartphone. In a follow-up to his 2010 Web 2.0 Expo talk, “iPad: Mobile Computing Redefined,” Raven looks back on the first year of the iPad – its successes and failings, as well as a look forward to Apple’s new hardware and software technologies and their inevitable impact on the market. 2011 will be an even bigger year for the consumer tablet sector, with additional hardware players, continued app and services innovation, and a more mainstream, global market for these devices.
*Capital Market Activity: *The month of May closed with 20 financings
totalling $327.1 million led by the $200 million investment by Digital Sky
Technologies in Facebook. Excluding the Facebook transaction, May would have
been the lowest month in CY2009. The Facebook transaction aside, four
transactions (One Net Ent., Cyberplex, Peer39 and OpenX), were greater than
or equal to $10 million. The average value in May is $15.6 million (and $6.4
million excluding the Facebook transaction), greater than the average value
for April of $6.2 million on 21 financings. The March average was $6.5
million on 24 financings. If you are aware of any companies that have
recently raised money that are not on our list, please send me an email to
have them added to our database.
*Price Performance: *Most of the companies in our universe had positive
stock price performances over the past week (for stocks with prices greater
than $1) (Figure 12), with 29 companies showing positive returns on the
week. GameOn co. Ltd (3812-TSE) led the group with a 28.2% return, while
eolith Co. Ltd. (A041060-KOSE) had the worst return, dropping 13.7% in the
week.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
1. SOFTWARE & SERVICES 10 MARCH 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
VIDEO COMPANIES LEAD FINANCING WAVE
MO ST AC T I V E S EC T O R I N F I N AN CI N G - V ID E O C OM PA NI E S
Activity over the last three months was busiest in the video sector, with 13 companies raising almost $100 million.
Social networking companies have the next highest totals with nine companies raising $46.7 million.
Capital Market Activity by Sector - Last Three Months
120.0
100.0
80.0
(US$m)
60.0
98.6
40.0
46.7
41.5
20.0
35.0
26.5 25.3 25.0
22.5 20.9
15.0
12.4 12.0 11.5 11.4 10.0 9.5
6.2 4.3 4.0
2.0 1.3 1.2
0.0
Comment/Reputatio n
G aming
Micromedia
O nline Learning
Travel
Financial Services
RSS
Mic roblog
Mobile
Search
Media
Wiki
Virtual Goods
Crowdsourced Content
Video
Virtual World
Infrastructure
Social Networks
Aggregation
Blog
Ad Network
Analytics
13 9 4 1 4 4 2 4 2 1 3 1 2 1 1 2 3 1 1 1 1 1
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.
www.researchcapital.com
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
Eighty-nine public Web 2.0 companies identified: W e have identified 89 public companies for our W eb 2.0 universe,
with a combined market cap of $27.8 billion. These include a wide variety of companies, including MMOG (Massive Multi-
Player Online Gaming) companies, social networking software companies, media sharing companies, and social lending
companies. See below for a summary of the full universe (Figure 1). The average market cap for the group is ~$310
million (but a median of only $31.5 million), with average trailing revenue of $130 million (median $40 million). The
companies are also generally profitable, with a median EBITDA margin of 13.3%. On a valuation basis, the overall
average is 3.7x trailing revenue (median 0.9x) and 8.1x trailing EBITDA (median 5.5x). Ten of the companies have more
than 500 employees.
C omparable C ompany Analys is > Web 2.0
T rading C urrent US D Mark et US D L TM T otal US D L TM T otal E B ITDA T E V /L T M TE V /L TM
C ompany Na me L T M as of Ti cker E xc hange C urrency HQ Price C ap ($m) R ev ($m ) E B IT DA ($m ) % R evenue E B ITDA E mployees
Acce lerize N ew Medi a, Inc. 9 /3 0/20 08 A C LZ OTCB B US D United S tates 0. 22 5. 9 3. 2 ( 4. 7) NM 3. 2 x - 20
Actoz S oft C o. , Ltd. 9 /3 0/20 08 A 05279 0 K OS E KR W S outh K orea 10 ,5 00 5 9. 9 4 7. 3 8. 7 18 .3 % 0. 8 x 4 .3 x NA
AQ Inte ractive, Inc. 1 2/31 /200 8 3 838 TS E JP Y J a pan 3 1, 35 0. 00 1 7. 2 6 0. 9 4. 9 8. 0% - - NA
As s ociated Me dia Holdings I nc. 6 /3 0/20 07 A S MH OTCP K US D United S tates 0 0. 1 0. 1 ( 2. 3) NM 8. 0 x - 3
Bi gs tring C orp. 9 /3 0/20 08 B SG C OTCB B US D United S tates 0. 01 0. 6 0. 1 ( 2. 1) NM 2 7. 0x - 8
Be ta wave C orporation 9 /3 0/20 08 B W AV OTCB B US D United S tates 0 4. 4 6. 3 (11 .0 ) NM 2. 4 x - 41
Be yond C ommerce, Inc. 9 /3 0/20 08 B YO C OTCB B US D United S tates 0. 48 1 9. 6 1. 1 ( 7. 7) -9 8. 9% 2 0. 6x - 25
Br ight T hi ngs plc 9 /3 0/20 08 A IM: B GT A IM G BP United K ingdom 0 2. 9 0. 2 ( 1. 6) 47 .1 % 1 2. 3x - 9
Br oadW ebA s ia Inc. 9 /3 0/20 08 B W BA OTCP K US D United S tates 0. 75 6 3. 7 0. 0 ( 4. 6) NM - - 46
C DC C orp. 9 /3 0/20 08 C HI N. A Na s daqG S US D Hong K ong 1 8 0. 9 428. 1 18 .8 16 .0 % 0. 3 x 7 .3 x 3,1 25
C hina G ateway C orpora tion 9 /3 0/20 08 CGWY OTCB B US D United S tates 0. 00 0. 0 6. 7 ( 6. 6) 13 .3 % 0. 0 x - 37
C hines e G amer International 9 /3 0/20 08 G T S M: 3 083 GTS M TWD T a iwan 1 44 351 . 7 3 7. 0 17 .4 NM 8. 0 x 17. 0x NA
C ornerW orld C orporation 1 0/31 /200 8 CWRL OTCB B US D United S tates 0. 14 6. 6 0. 6 NM NM 1 3. 1x - NA
DAD A S pA 9 /3 0/20 08 C M: DA CM E UR Italy 5 9 9. 5 214. 6 34 .3 NM 0. 7 x 4 .1 x 5 74
DXN Holdings Bhd 1 1/30 /200 8 DX N K LS E MYR Ma lays ia 0. 33 2 0. 6 7 4. 7 9. 9 NM 0. 5 x 4 .0 x NA
Dibz International, Inc. NA DIBZ OTCP K US D United S tates 0 0. 0 NA NM -0 .3 % - - NA
Digita lP os t I nter active, Inc. 9 /3 0/20 08 DG LP OTCB B US D United S tates 0. 00 0. 3 0. 4 ( 3. 3) NM 2. 8 x - 11
Digita lT own, Inc. 1 1/30 /200 8 DG T W OTCB B US D United S tates 3 6 8. 5 NM ( 2. 5) 18 .3 % - - 3
Dolphin Digita l Me dia , I nc. NA DP DM OTCB B US D United S tates 0. 40 1 9. 5 NA NM NM - - 6
E olith C o. Ltd. 1 2/31 /200 7 A 04106 0 K OS E KR W S outh K orea 5 55 1 6. 8 1 6. 2 ( 0. 0) -6 0. 6% 1. 0 x - NA
E xtensi ons, Inc. 9 /3 0/20 08 E XT I OTCP K US D United S tates 0. 49 4 6. 3 NM NM 16 .9 % - - 2
F ina ncia l Me dia Group, I nc. 1 1/30 /200 8 F NG P OTCB B US D United S tates 0 1. 0 6. 8 1. 2 26 .4 % 0. 0 x 0 .1 x 22
F luid Mus ic C anada , Inc. 9 /3 0/20 08 T S X: F MN TS X C AD United S tates 0. 33 1 3. 4 4. 2 ( 8. 6) NM - - 29
F rogs te r Inte ractive P icture s A G 6 /3 0/20 08 FRG XT R A E UR G er many 4 1 1. 0 5. 1 ( 3. 1) 61 .9 % 2. 1 x - NA
Ga mania Digital E nterta inme nt C o. , L td. 9 /3 0/20 08 6 180 GTS M TWD T a iwan 2 5. 25 110 . 2 106. 8 18 .1 23 .9 % 0. 8 x 4 .7 x NA
Ga meO n C o L td. 1 2/31 /200 8 3 812 TS E JP Y J a pan 81 ,0 00 7 9. 1 7 5. 4 19 .9 19 .2 % 0. 3 x 1 .2 x NA
Ge oS entric O yj 9 /3 0/20 08 G E O 1V HL S E E UR F inland 0. 04 3 1. 5 5. 2 (12 .0 ) 36 .0 % 5. 1 x - 92
Gi ant Inte ractive G roup, Inc. 1 2/31 /200 8 GA NY S E US D C hina 7 1, 588 . 8 233. 1 1 44. 3 14 .7 % - - NA
Gi gaMe dia L td. 9 /3 0/20 08 G IG M Na s daqG S US D T a iwan 4. 33 233 . 9 200. 5 48 .0 -2 5. 6% 0. 8 x 3 .5 x 9 75
Gravity C o., Ltd 9 /3 0/20 08 GRVY Na s daqG M US D S outh K orea 1 1 7. 8 3 1. 7 6. 1 4. 5% - - 6 36
Gree, Inc. 6 /3 0/20 08 T S E : 3 632 TS E JP Y J a pan 4, 69 0. 00 1, 057 . 1 2 9. 7 10 .7 NM 3 3. 5x - NA
GungHo Online E nte rtainme nt, I nc. 9 /3 0/20 08 3 765 OSE JP Y J a pan 116 ,8 00 134 . 9 103. 2 15 .2 NM 1. 1 x 7 .2 x NA
HanbitS oft, Inc. 9 /3 0/20 08 A 04708 0 K OS E KR W S outh K orea 3, 16 5. 00 4 4. 9 4 4. 9 (11 .5 ) NM 0. 6 x - NA
IA C /Inte rA ctive C orp. 1 2/31 /200 8 IAC I Na s daqG S US D United S tates 13 1, 897 . 2 1 , 445 . 1 64 .6 37 .2 % 0. 1 x 2 .2 x NA
IA S E ne rgy, I nc. 1 0/31 /200 8 IAS C . A OTCB B US D C a na da 0. 07 4. 9 0. 0 ( 0. 9) -1 5. 3% - - NA
IdeaE dge, Inc. 1 2/31 /200 8 O T C B B: ID AE OTCB B US D United S tates 0 1 6. 9 0. 0 ( 4. 6) 7. 6% - - NA
is ee media Inc. 9 /3 0/20 08 IE E T S XV C AD C a na da 0. 08 3. 2 1. 1 ( 4. 2) 33 .8 % 0. 6 x - NA
J umbuck E ntertainme nt P ty Ltd. 1 2/31 /200 8 A S X :J MB ASX A UD Aus tra lia 0 1 4. 1 1 1. 3 4. 2 -4 2. 5% 0. 9 x 2 .4 x 72
J umpT V I nc. 6 /3 0/20 08 T S X: J T V TS X C AD C a na da 0. 39 3 4. 2 1 1. 5 ( 1. 8) -1 0. 1% 3. 8 x - NA
K a boos e Inc. 9 /3 0/20 08 T S X: K AB TS X C AD C a na da 0 4 2. 2 5 7. 3 4. 4 -3 .7 % 0. 9 x 11. 2x NA
K i ngs oft C o. Ltd. 9 /3 0/20 08 3 888 S EHK HK D C hina 2. 62 362 . 6 106. 7 36 .0 NM 2. 6 x 7 .6 x 1,6 60
Lingo Me dia C orpora tion 9 /3 0/20 08 T S XV :L M T S XV C AD C a na da 1 9. 7 3. 1 ( 1. 3) 38 .0 % 3. 3 x - NA
Live World Inc. 9 /3 0/20 08 L VW D OTCP K US D United S tates 0. 04 1. 2 1 1. 7 ( 1. 2) 16 .0 % 0. 0 x - 73
Look S mart, Ltd. 9 /3 0/20 08 L OO K Na s daqG M US D United S tates 1 1 6. 5 6 9. 5 ( 2. 6) NM - - 93
Magnitude Informa tion S ys tems Inc. 9 /3 0/20 08 MA GY OTCB B US D United S tates 0. 02 8. 3 0. 1 ( 3. 2) NM - - 13
Mixi, I nc. 1 2/31 /200 8 2 121 TS E JP Y J a pan 308 ,0 00 476 . 4 118. 6 45 .1 26 .9 % 3. 1 x 8 .2 x NA
Mode rn T imes Group Mtg A B 1 2/31 /200 8 MT G B OM SE K S weden 11 4. 50 828 . 6 1 , 446 . 0 2 31. 2 48 .6 % 0. 9 x 5 .5 x NA
Moggle , Inc 1 2/31 /200 8 MMO G OTCB B US D United S tates 2 7 2. 6 NM ( 1. 1) 65 .0 % - - 3
MOK O. mobi L imited 6 /3 0/20 08 MK B ASX A UD Aus tra lia 0. 06 3. 1 1. 3 ( 2. 0) NM 1. 5 x - NA
NE O W IZ G ame s C orpora tion 1 2/31 /200 7 A 09566 0 K OS E KR W S outh K orea 36 ,5 50 227 . 3 116. 7 31 .4 30 .8 % 1. 9 x 7 .0 x NA
NetDra gon We bS oft, I nc. 9 /3 0/20 08 7 77 S EHK HK D C hina 3. 35 228 . 3 9 5. 2 46 .3 17 .6 % 0. 6 x 1 .2 x 1,4 82
Netea s e. com I nc. 1 2/31 /200 8 NT E S Na s daqG S US D C hina 21 2, 571 . 8 450. 9 2 93. 1 25 .3 % - - NA
NeXplore C orporation 9 /3 0/20 07 NX P C OTCP K US D United S tates 0. 95 5 3. 0 NM ( 4. 9) -5 .1 % - - 19
Ngi G roup Inc. 1 2/31 /200 8 2 497 TS E JP Y J a pan 16 ,2 00 2 0. 2 9 9. 4 30 .6 54 .1 % - - NA
Northgate T e chnologies L imited 1 2/31 /200 8 5 900 57 B SE INR India 3 0. 65 2 0. 6 130. 0 22 .9 -5 .3 % 0. 2 x 0 .9 x 2 86
Open T ext C or p. 1 2/31 /200 8 OTE X Na s daqG S US D C a na da 29 1, 527 . 4 769. 3 1 95. 0 NM 2. 2 x 8 .5 x 3,4 00
Openwa ve S ys tems Inc. 1 2/31 /200 8 OPW V Na s daqG S US D United S tates 0. 72 6 0. 0 199. 6 (10 .2 ) 13 .1 % - - 6 27
P e rfect W orld C o., Ltd. 1 2/31 /200 8 PWRD Na s daqG S US D C hina 10 550 . 8 210. 1 1 13. 7 46 .0 % - - NA
P hotoC hannel Ne tworks Inc. 1 2/31 /200 8 T S XV :P N T S XV C AD C a na da 1. 65 4 2. 6 1 5. 4 ( 0. 8) 13 .3 % 2. 7 x - NA
Quepas a C orp. 9 /3 0/20 08 QPS A Na s daqC M US D United S tates 1 1 1. 4 0. 1 (11 .8 ) 9. 4% - - 63
OA O R B C Informa tion S ys tems 1 2/31 /200 7 R BCI R TS US D R us s ia 0. 25 3 4. 7 132. 6 17 .3 10 .1 % 0. 0 x 0 .1 x NA
S handa Intera ctive E nte rtainment L td. 1 2/31 /200 8 S NDA Na s daqG S US D C hina 31 2, 134 . 9 521. 7 2 39. 7 -3 4. 8% - - NA
S hutterfly, Inc. 1 2/31 /200 8 S F LY Na s daqG S US D United S tates 7. 17 180 . 3 213. 5 28 .4 -6 0. 5% 0. 4 x 3 .2 x 5 14
S K C ommunications C o. , Ltd. 1 2/31 /200 7 A 06627 0 K OS E KR W S outh K orea 6 ,1 10 162 . 6 134. 2 12 .6 NM 1. 2 x 12. 9x NA
S NA P I nteractive, Inc. 9 /3 0/20 08 S T VI OTCB B US D United S tates 0. 95 1 0. 1 2. 3 0. 2 21 .7 % 3. 9 x 38. 9x 5
S NM G lobal Holdings 9 /3 0/20 08 S NMN OTCP K US D United S tates 0 0. 0 2. 0 ( 0. 7) NM 1. 1 x - 33
S ocial Media V enure s , Inc. 1 2/31 /200 8 S MVI OTCP K US D United S tates 1. 20 0. 0 0. 1 ( 0. 1) 49 .5 % 0. 1 x - NA
S i te s earch C orpora ti on 1 0/31 /200 8 S TPC OTCB B US D United S tates 1 8. 9 NM ( 0. 9) -1 2. 0% - - 15
S park Ne twork s , Inc. 1 2/31 /200 8 L OV A ME X US D United S tates 2. 33 4 7. 9 5 7. 3 12 .4 33 .7 % 0. 8 x 3 .9 x NA
S pectrumDNA, Inc. 9 /3 0/20 08 S PX A OTCB B US D United S tates 0 9. 7 0. 1 ( 2. 7) 10 .8 % - - 7
T encent Holdings Ltd. 9 /3 0/20 08 7 00 S EHK HK D C hina 4 7. 25 10 ,9 49 .3 903. 2 4 47. 5 -5 0. 6% 1 3. 1x 26. 5x 6,0 39
T he P arent C ompany 8/2/2 008 K IDS . Q OTCP K US D United S tates 0 0. 2 112. 0 (13 .5 ) -1 0. 4% 0. 2 x - 3 47
T he 9 Limited 1 2/31 /200 8 NC T Y Na s daqG S US D C hina 9. 33 250 . 2 249. 7 84 .1 0. 4% - - NA
T he S tre et.com, Inc. 1 2/31 /200 8 TS CM Na s daqG M US D United S tates 2 5 5. 0 7 1. 9 7. 7 23 .0 % - - NA
T otal S ports O nli ne A S A 3 /3 1/20 06 TOS O O T C NO NO K Norway 0. 04 0. 2 1. 9 ( 1. 0) -9 1. 6% 4. 6 x - 16
T ree . C om, Inc. 1 2/31 /200 8 TRE E Na s daqG M US D United S tates 4 3 9. 2 228. 6 (23 .9 ) NM 0. 2 x - NA
Unis e rve C ommunications C or p. 1 1/30 /200 8 T S XV :U S S T S XV C AD C a na da 0. 05 1. 0 2 3. 1 0. 1 -1 0. 1% 0. 1 x 31. 3x NA
Unite d Online Inc. 1 2/31 /200 8 UNT D Na s daqG S US D United S tates 4 325 . 3 669. 4 1 53. 9 NM 0. 9 x 4 .1 x NA
UOMO Media, Inc 1 0/31 /200 8 UO MO OTCB B US D C a na da 0. 06 5. 1 0. 5 ( 0. 4) NM 1 1. 4x - NA
VO IS , I nc. 1 2/31 /200 8 V OI S OTCB B US D United S tates 0 3. 3 0. 0 ( 1. 3) NM - - 4
W ebzen Inc. 1 2/31 /200 8 W ZE N Na s daqG M US D S outh K orea 1. 22 1 4. 5 1 8. 4 ( 1. 9) NM - - 3 30
W izz a rd S oftwa re C orporation 9 /3 0/20 08 W ZE A ME X US D United S tates 0 1 9. 0 6. 2 ( 6. 5) 38 .8 % 3. 1 x - 1 10
W oozyF ly, Inc. 9 /3 0/20 08 W ZY F OTCB B US D United S tates 0. 15 2. 6 0. 0 NM 22 .4 % - - 14
W orlds .com Inc. 9 /3 0/20 08 W DDD OTCB B US D United S tates 0 7. 3 0. 1 NM -7 .6 % - - 1
W ynds torm C orporation NA W YN D OTCB B US D United S tates 0. 12 2. 2 NA NM NM - - NA
XI NG AG 9 /3 0/20 08 O 1B C XT R A E UR G er many 25 162 . 5 3 9. 7 15 .4 0. 0% 2. 7 x 7 .1 x 1 61
Y e dangO nline C orp. 1 2/31 /200 7 A 05277 0 K OS E KR W S outh K orea 6, 30 0. 00 6 3. 8 4 4. 4 9. 9 65 .0 % 1. 4 x 6 .4 x NA
Y nk K orea Inc. 1 2/31 /200 7 A 02377 0 K OS E KR W S outh K orea 3 ,4 60 5. 5 1 2. 6 ( 1. 0) -9 8. 9% 0. 4 x - NA
ZipL ocal I nc. 9 /3 0/20 08 T S XV :ZIP T S XV C AD C a na da 0. 02 0. 9 2. 7 ( 3. 7) 8. 2% 0. 6 x - NA
High 10 ,9 49 .3 1 ,4 46 .0 44 7. 5 65 .0 % 3 3. 5x 38. 9x 6, 03 9
Low 0. 0 0. 0 -2 3. 9 -9 8. 9% 0. 0 x 0 .1 x 1
Average 312.5 130.4 28.2 7.3% 3.7x 8.1x 468
Medi an 3 1. 5 39 .7 0 .2 13 .3 % 0. 9 x 5 .5 x 72
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 )
Twitter raises $35 million: The largest W eb 2.0 financing of the last three months remains the $35 million raised by
Twitter (Figure 2). Overall, there were 25 financings announced in February, totalling $185.5 million, or $7.4 million on
average. There have been five financings announced so far in March, totalling $36.2 million, led by the $15 million Series
D round for Vidyo. 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 $15 million in
January. For additional details, see Figure 29 (at end of note).
Financing Summary - Last Three Months
40.0
35.0
30.0
25.0
Mar-09
(US$m)
20.0 Feb-09
Jan-09
15.0
10.0
5.0
0.0
Tongxue
Mixpo
Myngle
CoveritLive
Motionbox
TextDigger
Xobni
Synthasite
Vidyo
Offerpal Media
AdMob
Go Internet Media
One True Media
Tvtrip
Kewego
SocialMedia
MMO Life
BackType
SundaySky
Gbox
Mendeley
Filtrbox
Meez
Twitter
NewsGator
SendMe Inc.
IMVU
InsideView
Tynt
Tripwolf
fav.or.it
Tvinci
Tremor Media
Yodle
Outbrain
Nurien
JibJab
Oodle
Virtual Fairground
FetchDog
7 Billion People
Hubdub
Snooth
Identi.ca
VirtuOz
Play Hard Sports
Fliqz
E-Global Sports Network
RatePoint
OneSpot
Outright
DECA
Geni
Cake Financial
mEgo
Aster Data Systems
AboutUs
Sportsblogs
FamilyLink.com
Pulse Entertainment
Imagini
Simulmedia
Emergent Game Technologies
WhistleBox
Wamba
Figure 2. Financings, Last Three Months
Source. Company reports
Video continues to be the most active sector: Activity over the last three months was busiest in the video sector, with
13 companies raising almost $100 million (Figure 3). Social networking companies have the next highest totals with nine
companies raising $46.7 million.
4. Page 4
Capital Market Activity by Sector - Last Three Months
120.0
100.0
80.0
(US$m)
60.0
98.6
40.0
46.7
41.5
20.0
35.0
26.5 25.3 25.0
22.5 20.9
15.0
12.4 12.0 11.5 11.4 10.0 9.5
6.2 4.3 4.0
2.0 1.3 1.2
0.0
Comment/Reputation
Gaming
Micromedia
Wiki
Travel
RSS
Microblog
Mobile
Media
Online Learning
Financial Services
Crowdsourced Content
Infrastructure
Blog
Search
Social Networks
Virtual Goods
Video
Virtual World
Aggregation
Ad Network
Analytics
13 9 4 1 4 4 2 4 2 1 3 1 2 1 1 2 3 1 1 1 1 1
Figure 3. Capital Market Activity, by Sector, Last Three Months
Source. Company reports
Average round size increases slightly: On a trailing 12-month basis, total financing dollars inched up as of February
2009, with average round sizes increasing slightly as well (Figure 4).
5. Page 5
LTM Financing
4,000.0 20.0
18.0
3,500.0
16.0
3,000.0
14.0
2,500.0
12.0
(US$m)
(US$m)
2,000.0 10.0
8.0
1,500.0
6.0
1,000.0
4.0
500.0
2.0
0.0 0.0
May-06
May-07
May-08
Nov-05
Mar-06
Nov-06
Mar-07
Nov-07
Mar-08
Nov-08
Jul-05
Sep-05
Jan-06
Jul-06
Sep-06
Jan-07
Jul-07
Sep-07
Jan-08
Jul-08
Sep-08
Jan-09
Total Average
Figure 4. Financings, Last 12 Months
Source. Company reports
Cumulative total over $5.6 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled over $5.6 billion,
with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 5). Financing for the first
quarter of 2009 ($438 million) has now passed that raised in the fourth quarter of 2008 ($339 million) – reversing the
downtrend since the second quarter last year.
6. Page 6
Web 2.0 Financing (cumulative)
1,400.0 6,000.0
1,313.3
1,200.0
5,000.0
959.2
1,000.0
4,000.0
800.0
727.7
(US$m)
(US$m)
3,000.0
600.0
528.9
438.0 2,000.0
400.0 338.5
319.4
1,000.0
200.0 151.7151.5
135.6
106.6
87.2 82.8
77.4
41.9 57.8
38.8 20.1 37.5 33.5 18.2
0.0 0.0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1
2004 2005 2006 2007 2008 2009
Figure 5. Financing, Cumulative
Source. Company reports
U.S. remains dominant: U.S. companies continue to dominate capital market activity – with almost 67% of
financings/M&A involving U.S. companies (based on dollars) (Figure 6). The international spread of Web 2.0 companies is
demonstrated in the financings as well, with 16.6% raised for Chinese companies and 4.2% for Russian companies. Based
on number of transactions, the U.S. leads with 72.1% of deals, while Canada is third in number of financings at 5.1%
(Figure 7).
Financing/M&A by Country - LTM ($) Financing/M&A by Country - LTM (#)
China
Canada Israel
16.6% UK 5.1% 3.7%
5.1%
Russia France
4.2%
2.8%
UK Israel
2.1% 1.9%
ROW
France
1.6% 11.2%
Denmark
1.6%
ROW
5.1%
USA
USA
72.1%
66.7%
7. Page 7
Figures 6 & 7. Financing/M&A, by Country (LTM, $, #)
Source. Company reports
Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage
companies (Angel/Seed or Series A) (Figure 8). Series B rounds are 28.4% of the total, with later-stage (Series D, E and
PIPE) deals accounting for just 7.3%.
Financing by Type - LTM
Series C
15.1%
Series B
28.4%
Series D
4.7%
Angel/Seed
11.2%
Debt financing
Series A 3.0%
35.8%
PIPE
1.7%
Figure 8. Financing, by Type (LTM, #)
Source. Company reports
Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C, and D rounds
have all been lower than the overall average (Figure 9). Note though that Angel/Seed rounds have been larger.
8. Page 8
Average financing round size
40.0
36.1
35.0
33.5 33.5
30.0 28.8
25.0
22.7
(US$m)
20.0
18.2
15.0
11.7 11.9
11.3 11.3
9.8
10.0
7.3
6.8
5.8
5.0
3.5
2.5
0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E
LTM Average Size Overall Average
Figure 9. Average Size per Round
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) underperformed the NASDAQ composite index from mid
2008 until recently (Figure 10).
9. Page 9
Web 2.0 Index Price Performance
140
120
100
80
60
40
20
0
3/10/2008
3/24/2008
4/7/2008
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
NASDAQ COMP Web 2.0 (Market Cap Weighted)
Figure 10. Web 2.0 Price Performance
Source. Capital IQ
Webzen leads; NGI gives back price increase: NGI Group (2497-TSE) fell 22.8% after leading last week, to have the
worst performance in the group (for stocks with prices greater than $1) (Figure 11), after increasing 22.1% last week.
W ebzen (W ZEN-NasdaqGM) rose the most, +37.1%.
10. Page 10
1 Week P rice P erformance
Webz en Inc. 37.1%
NEOWIZ G ames Corporation 20.4%
Perf ect World Co., Ltd. 17.2%
NetDragon WebS oft, Inc. 14.3%
G amania Digita l Entertainment Co., Ltd. 12.7%
G iant Interactive G roup, Inc. 11.8%
Chines e G amer International 8.3%
Tencent Holdings Ltd. 7.0%
Eolith Co. Ltd. 6.7%
G ree, Inc. 6.6%
K ings oft Co. Ltd. 4.4%
HanbitS oft, Inc. 4.1%
Neteas e.c om Inc. 2.2%
TheS treet.c om, Inc. 1.7%
A ctoz S oft Co., Ltd. 0.5%
S handa Interactive Entertainment Ltd. 0.0%
Tree.Com, Inc. 0.0%
Moggle, Inc 0.0%
G ungHo Online Entertainment, Inc. -0.2%
S K Communica tions Co., Ltd. -0.8%
Y nk K orea Inc. -2.4%
Modern Times G roup Mtg A B -2.6%
DA DA S pA -3.0%
Open Tex t Corp. -3.7%
S ocial Media V enures , Inc. -4.0%
S park Netw orks , Inc. -4.5%
PhotoChannel Netw orks Inc. -4.6%
A Q Interactive, Inc. -4.7%
Y edangOnline Corp. -5.3%
DigitalTow n, Inc. -8.4%
S hutterf ly , Inc. -8.5%
Frogs ter Interactive Pictures A G -8.6%
IA C/InterA ctiveCorp. -9.1%
United Online Inc. -10.0%
Northgate Technologies Limited -10.4%
G ameOn Co Ltd. -12.9%
The9 Limited -13.5%
Mix i, Inc. -14.2%
X ING A G -14.2%
G igaMedia Ltd. -14.9%
Ngi G roup Inc. -22.8%
-30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
Figure 11. 1-Week Price Performance
Source. Capital IQ
11. Page 11
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developments
C ompany Headline Notes
T ree .C om, Inc. (Na s daqG M: T R E E ) T ree. C om Inc. L aunches New, S implifie d F ilte r T re e.C om I nc. announce s the lau nch of new, simplified f ilter te chnology available only to Le ndingT ree Network lende rs . F iltering te chnology
T echnolo gy at L endingT ree give s lenders a cus tomer targeting capability at their finger tips . T he te chnology , no w eas ier tha n ever, s implifie s the filter s et
up a nd management proces s providing le nders a more stre amlined approa ch to targeting the exa ct cus tomer s egments that mee t s pecific
unde rwriting crite ria a nd inves tor requ irements. LendingT re e's proprieta ry filtering technolo gy was firs t intro duced in 1998 and s ince that
time, has helped more than 25 million borrowers work with lende rs clos ing more tha n $1 85 billion in loa ns . Le nders who belong to the
LendingT re e Ne twork work with highly-qua lified cus tomers look ing fo r mortgages a nd ref ina nce loans , home e quity loa ns /lines o f credit, a uto
lo ans , and pe rs onal lo ans .
R B C Information S y ste ms L aunche s Macroecono mics O AO R B C Information S ys te ms a nnou nced the launch of a new proje ct-M acro economics -integrated with the Q uo te.ru financia l news porta l.
O AO R B C Informa ti on S ys tems
P roje ct T he pro duct is aime d at providing R B C 's us ers with re gular updates o n macroecono mic statistics for R u ss ia and a number o f other countries .
(R T S : R B C I)
T he new project is divided into s everal blocks o ffering information, news a nd analys is . In thes e block s vis ito rs will ha ve acce ss to an
economic ca lendar fo r 6 countries , the late st s howings fo r at leas t 3 0 to 40 ma croe co nomic indicators , the mos t recent econo mic updates ,
analy tical articles a nd commenta ries by ex perts o f the world's inves tment companies , a s well as e co nomic f ore ca s ts by mo re tha n 20 top
world's and R us sian inves tment banks . In a dditio n to tha t, the po rtal's us ers will a ls o be granted a cce ss to s tatis tics archives f eatu ring
histo rical ma croe co nomic indices , along with a brief des cription of e ach of the indicators, including a no te o n the pe riodicity of updates a nd
the date of the lates t update. T he dynamics of e ach of the indicators ca n be track ed in a chart.
No rthgate T echno lo gie s Limited A ppoints R ames h Northgate T e chnologies Limited informed that M r. R ames h Y arllagada has be en a ppointe d as a dditio nal dire ctor (non-ex ecutive and
Northgate Te chnologies L imited
Y arllaga da a s Additional Director indepe ndent director) of the company effective from F ebru ary 2 8, 2 009 in the board mee ting he ld on F e bruary 28, 2 009 .
(B S E : 590057)
IdeaE dge Inc. A nnounces A uditor C hange Idea E dge I nc. announce d tha t the B DO S e idman, LL P wa s appo inted the inde pendent re gis te re d pu blic accounting firm o f the C ompany on
Idea E dge, Inc. (O T C B B : ID AE )
O cto ber 8, 200 8 and remains its independent re gistere d pu blic accounting firm.
P erfect W orld C o. L td. Announces U naudite d P e rf ect W orld C o. Ltd. announce d unaudited cons olidated earnings res ults for the f ourth quarter a nd y ear e nded December 3 1, 2 008. F or the
P erfec t W orld C o., L td.
C o ns olidated E arnings R e su lts f or the F ourth Qu arter and quarte r, the company 's total re venues were R MB 417 .8 million ($61. 2 million), an increas e o f 61. 7% f rom R M B 258. 4 million for the fou rth
(Nas da qGS : PW R D)
Y ear E nde d De ce mbe r 31, 2008 ; P rovides E arnings quarte r of 2 007. Net income f or the qua rter was R MB 12 4.8 millio n and or R M B 0.42 per diluted s hare a s co mpa re d to net inco me of R M B
G uidance for the F irs t Qu arter of 2009 146. 2 million or R MB 0. 50 f or the sa me qua rter of 2 007.
F or the ye ar, the company 's to tal reve nues we re R MB 1, 437. 2 million as compared to to tal reve nues o f R MB 6 89.1 million in 2 007. T he y ea r-
over-y ear increas e wa s primarily due to the ex pansion of the C o mpany 's game portfolio , the s ucces sf ul lau nch of a s eries of e xpa ns ion
pack s and ma rk eting campaigns , and a significant e xpa ns ion in overs eas licens ing bus ine ss . Net income f or the ye ar was R MB 64 6.5 millio n
and net income attributa ble to o rdinary s ha re holders of R MB 646 .5 million or R MB 2. 18 per diluted s ha re as compared to net income of R MB
361. 94 million and net inco me attributa ble to ordinary shareholders of R MB 360 .2 million or R M B 1 .35 per dilu ted share in 20 07.
P erfect W orld C o S eek s A cquis itions Michael C hi, the F ou nder, C hairman and C E O of P erfect W orld C o., Ltd. , s aid in a co nference ca ll, “O ur pos itive re su lts during the perio d
P erfec t W orld C o., L td.
co ntinue to be drive n by ou r e xecution of our s trategy. W e continue to de velop and lau nch new games to the marke t in a very time ly ma nne r.
(Nas da qGS : PW R D)
W e have also s een ma ny great achie vements in our o vers eas e xpa ns ion eff orts during 20 08. W e s ucces s fully broadened our geographic
co ve ra ge in A s ia and E u ro pe thro ugh overse as licens ing and we es tablis he d a wholly owne d s ubs idia ry in the U nite d S tate s that ope rates
our own games thro ugho ut N orth A me rica. P urs uing s trate gic a cquisitions is als o one of o ur stra tegy to drive bus ines s gro wth.”
U pdate to P erfe ct W orld C o., Ltd.'s E quity B u yba ck o n As o f Ma rch 1 , 20 09, P e rfe ct W orld C o. , Ltd. ha s re purchas ed 977, 492 ADS 's (equ ivalent to 48 874 60 s ha re s) and 18 ,750 ,000 s hares , u nder
P erfec t W orld C o., L td.
M arch 1, 2 009 its s ha re repurchas e pla n.
(Nas da qGS : PW R D)
J umbuck E nterta inment P ty Ltd. announces a n E quity J u mbuck E ntertainment P ty Ltd. (A S X : J MB ) authoriz ed a n on-mark et s ha re repurchas e program on March 3, 200 9. U nder the progra m,
J umbuc k E nte rtainment P ty L td.
B uy back J u mbuck will repurchas e up to 4,80 2,011 ordinary s hares , repres enting 9. 7% o f the is s ued capital. T he program will begin on M arch 18 ,
(AS X :J MB )
2009 and continue for 1 2 months, or until the maximum number o f s hares is acquired or u ntil notice is given that the buy back is co ncluded.
T he s ha re buy back progra m is a part of J umbuck ’s capital management program. O n M arch 3, 2009 , J umbuck has 4 9,53 2,82 5 s hares in
is s ue. Au stock S ecuritie s Ltd. (Melbourne ) acted as the brok er to J u mbu ck f or the trans action.
T ence nt H ol dings L td. (S E HK : 700) T ence nt Ho ldings Ltd. E x pands Mobile S ervice T urf in T encent Holdings Ltd. ex pands its se rvice to 1 6 area s acro ss C hina , on the s trength of gene ra l packe t radio s ervice (G P R S ) o f C hina
C hina U nico m (Ho ng K ong) Ltd. , formerly k nown as C hina U nico m Ltd. C hina U nicom's G P R S u se rs can install the lates t vers io n of Mobile Q Q , a
ce llular me ss aging s ervice provided by T e ncent, in the ir mobile pho nes . It means that they can cha t with their friends any time. T he lates t
ve rs ion will be available in su cces s io n in other area s in the cou ntry. U p to no w, the lates t vers io n is expe cted in the 1 6 area s including
G uangdong P rovince, Zhe jiang P rovince , Hu bei P rovince, S hanghai, J iangs u P rovince , F ujia n P ro vince, T ianjin, J ilin P ro vince, H enan
P rovince , S handong P rovince , He bei P rovince, Ha ina n P ro vince, J iangxi P rovince, He ilongjiang P rovince, Xinjiang U y gur A uto nomous
R egion, and G uangxi Zhua ng A uto nomous R e gio n.
XI NG AG O pens S ubs idiary in Mila n XING A G is continuing o n its clea r cou rs e of inte rnational ex pansion. T he opening of a new su bs idiary office in M ilan mea ns that XIN G AG is
X ING AG (X T R A: O 1B C )
now pre se nt a t a local leve l f or the thriving o nline co mmunity in Italy . T he C ompa ny has appointed C ipriano Mo neta (45), an internationally
re nowne d Internet Manager, with the aim o f driving f orwa rd member growth and B 2 B operations in Italy with increa se d impe tus .
B ey ond C omme rce Inc. R e ports S ale s R es ults for the B e yond C o mmerce Inc. re ported s ale s re su lts f or the mo nth of F ebru ary 2 009. T ota l revenu es of $3,3 26,0 00 fo r the mo nth o f F ebru ary
B eyond C omm erce , Inc .
M onth of F e bruary 2009 ; P rovide s E arnings G uidance for re pres ent an increas e o f 44 % compared with the prior month, a nd a bout 80% increa se s ince December 20 08. The company a nticipa tes the
(O TC B B : B YO C )
the F irs t Qu arter of 2009 ; to La unch i-S U P P LY 's E - firs t quarter to be profitable, bas ed on current trends .
C o mmerce W idge t S tore T he compa ny anno unced that its i-S U P P LY 's E -comme rce widget s to re will enter the mark et u sing a be ta vers io n 1.0 on thou sa nds of W eb
sites in late March 2 009, off ering abo ut 1 .8 million brand name pro ducts . i-S U P P LY will a dd a n additional re ve nue strea m and be the
back bone of the proprie tary advertis ing network the C ompa ny is currently developing.
T he 9 to Lau nch O pen B e ta T e st for F IF A O nline 2 T he9 Limited anno unced that it planne d to initiate ope n be ta te st for P E ente rtaining game, F IF A O nline 2 in A pril. T he game is the
T he9 L i mited (Nas da qGS : NC T Y)
developed ve rs ion o f fo otba ll game FI F A, a multimedia o nline role -play ing ga me (MMO R P G ) by A merican game runner, E le ctro nic A rts ,
which has go t the of ficial authoriz ation f ro m F e deration Inte rnationale de F oo tball As s ocia tio n.
G iant I nteractive G ro up I nc. R e ports E arnings R es ults for G iant Interactive G rou p Inc. unau dited conso lidated ea rnings re su lts f or the fou rth qua rter and fiscal y ear ended December 31 , 20 08. F or the
G iant Interactive G roup, Inc .
the F ou rth Q uarte r a nd F u ll Y ear E nded December 3 1, fourth qua rter 200 8, the company reported that net income was C NY 290 .3 million, a yea r-over-yea r decreas e o f 13 .0% f ro m C NY 333. 8
(NYS E :G A)
20 08 ; P rovides E arnings G uidance for the F irs t Q ua rter millio n. N et income de clined fro m the sa me perio d las t y ear as the C o mpany remained in a trans itio n pe riod following the adjus tme nts made
of 200 9 ; Declares C as h Dividend P ay able on April 10, to ZT O nline's mone tiz ation s tru cture du ring the third qua rter 200 8. B as ic e arnings per s ha re for the pe riod was C NY 1.2 6 and dilu ted
20 09 ; P lans to La unch N ew G ames earnings pe r share was C N Y 1 .23 co mpare d to bas ic earnings pe r share of C NY 1.3 9 and dilu ted earnings pe r share of C NY 1.3 3 for the
sa me period las t y ear. Net revenu e was C N Y 3 53.1 million, re pres enting 18.8 % decreas e from C NY 434 .8 million in the fou rth qua rter 200 7.
Income before income tax expe ns es was C NY 25 5.31 million compa re d to C NY 333 .80 millio n in the fou rth qu arter 20 07. Non-G AA P net
inco me for the qu arter was C NY 29 8.26 million compa re d to C NY 347 .32 millio n for the s ame perio d in 20 07. B as ic Non-G AA P earnings per
share fo r the perio d was C NY 1 .29 a nd dilute d Non-G A AP ea rnings per s hare was C NY 1.2 6 compared to bas ic No n-G A A P e arnings per s ha r
S park Networks , Inc. (AME X : L O V) S park Networks Inc. A nnou nces U nau dited C ons olida ted S park Network s Inc. a nnou nced u naudited conso lidate d ea rnings re su lts f or the fourth qua rter and full y ea r e nde d Decembe r 3 1, 2 008.
E arnings R es ults fo r the Fo urth Q ua rter and F ull Y ear R evenue for the fo urth quarter o f 20 08 was $ 13.2 million, a de crea se of 18% compa re d to $16 .0 million in the fourth qua rter of 2 007, and a
E nde d Decembe r 31, 2 008 ; A nno unces Impairme nt 6% decre as e compared to $ 14.0 million f or the prio r quarter. Net los s for the fo urth quarter o f 200 8 was $ 164, 000, or $0 .01 per bas ic and
C harges diluted s ha re, compared to ne t income of $6. 6 million, or $0. 25 per bas ic and dilute d s hare, for the fo urth quarter o f 200 7. I n the fo urth
quarte r of 2 007, the C ompany releas ed net ope ra ting los s valuation allo wa nces , which redu ce d the ta x provision. Adjus te d E B I T DA f or the
fourth qua rter of 2 008 was $3. 7 million, a decre as e of 3% compa red to $3.8 million f or the fourth qua rter of 2 007 , and a decre as e of 11%
co mpared to $4 .1 million in the prior quarter. Fo r the quarte r, the co mpany has o perating income of $ 1,23 7,000 aga inst ope rating income of
$1,6 19,0 00 reported a y ear ago. F o r the quarter, the compa ny had income befo re inco me tax es of $721 ,000 aga ins t income before income
tax es of $1,89 6,00 0 repo rted a ye ar ago . F or the qu arter, the company had E B IT DA of $ 1,17 8,00 0 agains t E B IT DA o f $2, 420, 000 re ported a y
M odern T imes G ro up to La unch Ne w T V C hannel in Modern T imes G roup Mtg AB will launch a ne w free tele vis ion channel in the C ze ch R epu blic. T he company s aid the channel, to be called
Modern T ime s G roup Mtg AB
C z ech R epublic P rima C O OL , will air on A pril 1, 200 9 and complement the compa ny's exis ting P rima televis ion cha nnel. P rima C OO L will be a broad-ba se d
(O M: MT G B )
gene ra l e nterta inment channel, ta rgeting 2 0-4 0 y ear o ld viewers .
12. Page 12
W izz ard Media S igns Distribution Agre ement with G et W iz z ard Me dia a divis ion o f W izz ard S oftware C orpo ra tio n an noun ce d th at it ha s sign ed a n agree me nt with G e t Ma rried to dis tribu te its
W izzard S oftware C orpora ti on
M arried exclus ive video con tent via A pple iT un es , Micro so ft Zun e Ma rk etpla ce and s ele ct vide o s treamin g web s ite s. Driven by unique video and
(AME X: W ZE )
in forma tio n, www.G etMarried.com and G et M arried's s ho w on Lif etime T elevis ion conne cts bride s with lo ca l a nd n ational weddin g
profes s io nals and in dus try expe rts online and on televis io n every day throu gh e nterta inmen t an d ne ws. W ork ing with G et Married fits with
W iz z ard's s trategy o f he lping high-qua lity, branded con tent produ ce rs ex pan d th eir rea ch and expos ure to new audiences . As pa rt of G e t
Marrie d's mis s ion to provide unique co nten t to brides and wedding profe ss ionals how and wh en they want it, th e pa rtn ersh ip with W izz ard
Media further e nables G et Married to dis tribute its expans ive portfolio of wedding-related video .
U pdate to G iant Inte ra ctive G roup, Inc.’s E quity B uy ba ck As o f Decembe r 3 1, 2 008 G ian t Interactive G roup, In c. has repurch as ed 1 4,94 7,20 0 s hares fo r a to tal cos t of $97. 7 million, under the
G iant Interactive G roup, I nc .
on December 3 1, 2 008 program an noun ce d on Au gus t 1 1, 2 008.
(NYS E :G A)
S ites earch C orpo ra tio n A ppo ints J a mes Dixo n as a C hief S ites ea rch C orporation co mmenced an emplo yment agree men t with J ames Dixo n pu rs ua nt to which Mr. Dixo n will s erve as the company 's
S ites ea rch C orporation
E xecutive O ff icer C hief E xe cu tive O ff icer ef fective March 4, 200 9. T he agree me nt is for an in itial on e y ear te rm un les s te rminate d by eithe r party and ma y be
(O TC B B : S T P C )
extende d by mutu al agreement between the co mpa ny and Mr. Dixo n.
T ree .C om, Inc. (Na s daqG M: T R E E ) T ree. C om, In c. P rovides E arn in gs G uidance f or the F irs t T re e.C om, Inc. provided earnings gu ida nce fo r the f irs t qu arter of 200 9. F or the quarter, the compa ny expects E B IT DA an d ne t in come (los s )
Q ua rte r of 2 009 to be roughly in-line with or s lightly better tha n E B I T DA a nd n et income (los s) f or the fourth qua rter of 2 008.
Figure 12. Key Developments
Source. Capital IQ
VALUATION
MMOG companies lead market cap charts: Seven companies in our W eb 2.0 universe top US$1 billion in market
capitalization (Figure 13). Sixty-seven of the 89 companies have market caps under US$100 million, with 30 under $10
million. Online gaming companies dominate the top of the list with four of the top five by market cap.