In 1999, Canaan led ON24's Series A investment. Before the investment, we valued the company at $12M. As a public company, it is now valued at about $3B (depending on the day).

1. On24ioo
Canaan Partners Investment Opportunity Overview
Company: On24, Inc. Date: 4/30/99
Partner: DK Source: Sharat Sharan, CEO
Location: San Francisco, CA
Service: On24 operates an Internet broadcast network for online investors. The Company’s strategy is to
aggregate streaming content for the top 250 companies of high interest to online investors. This content
would include audio and video clips provided by the companies and by third parties, as well as interviews
with analysts, coverage of conferences and tradeshows. This content is then distributed through a
syndication network of large web sites targeted at the online investor. The Company’s technology allows
“template-driven” packaging for streaming content, a searchable database access and hosting.
Market: The individual online investor market grew 100% in 1997 to over 7.3M Internet accounts. 27% of
all individual trades were conducted online in 1998. The streaming media market is growing twice as fast
as the Internet. There have been over 50 million downloads of the Real Player to date.
The Company’s revenue model anticipates fees from companies who want to get distribution and hosting
for such content, and advertising splits from the web sites that receive this content. Paying companies
today include Synopsys, Etrade and Inprise.
Competition: A number of companies like Broadcast.com provide “webcasting”, i.e, posting of audio and
video clips on their website. Unlike On24, these are generally broad, horizontal content sites, with no
syndication or distribution to other web sites.
A number of financial sites such as Vcall, The Street.com, Marketwatch, etc. provide financial content, but
not targeted at the top 250 companies of interest to online investors, and not in a targeted comprehensive
manner. Many of these companies could expand their activities to include streaming media to a syndicated
network, but are also potential partners for On24.
Distribution: The Company’s syndication partners include ZDNet, Earthweb, Meckler Media,
BusinessWire, StockMaster, CNET/SNAP, and Quote.com. In process are GO2Net, Silicon Investor,
Netscape and Nasdaq. Potential future partners include Etrade, Schwab and Marketwatch.
Management: Sharat Sharan, CEO, was a VP and GM at Hearst New Media for 4 years, with responsibility
for sites such as Home Arts and Houston Chronicle Interactive. Previously he was a Director of Business
Development at Lucent’s wireless group. He has an MBA from University of Chicago. Rajiv Puranik, VP
Engineering, was Director of Engineering at OneTouch, Sun and AMD. Bill Boles, VP Sales and Founder
was VP of Sales and Marketing at Quote.com. Mitch Ratcliffe, VP Programming was formerly with
SoftBank and various magazines.
Stage: The Company has been funded by individual investors to date with $750K invested. Investors
include Jim Barksdale (Netscape), Skip Glass (Kiva), Ed Johnson (Times Mirror) and Jim Bidzos (RSA
Data).
Financials
98(A) 99(P) 00(P) 01(P)
Revenue $100K $2.5M $8.5M $25.2M
Profit ($550K) ($3.0) ($750K) $3.1M

2. On24ioo
Deal Anticipated: Canaan would lead a $6M round with a $3M investment. The balance would come from
the founders of Earthweb ($1M) and another venture investor (to be determined – SoftBank and Flatiron
have showed interest). The valuation is $12M pre-money. Canaan would receive a Board seat.
Why of Interest
• Intersection of two fast growing markets - online investing and streaming media
• Growth in syndication network enhances value of Company and increases barriers to entry
• Early players in the market (Broadcast.com, Marketwatch, Multex and Infospace) all have large
valuations.
• Strong acquisition interest likely from financial, Internet and media companies.
Issues
• A content company
• Growth of online investment market could be adversely affected by a market downturn
• Losses anticipated to grow over a 24 month period.
• Advertising revenue model is relatively untested
• Strong potential competitors
Timing
• Due diligence is nearly complete
• Management has met JVB, EAY & DK
• Term sheet negotiation underway