Transmedia Capital is a $25 million seed stage venture fund investing in new technologies that impact traditional media and entertainment industries. It will focus on opportunities created by disruption of these industries from technological innovation. The fund will provide small initial investments of $150k-$3m and mentor support to 8-15 portfolio companies per year. It believes this approach is better suited to current venture capital realities and opportunities compared to larger traditional VC funds.

1. Seed stage venture fund investing in new technologies that impact the traditional media and entertainment industries March 2009

2. The Landscape The New York Times, February 9 th 2009 “ I believe that the paradigm has changed for the venture business…” “ Exits are now mergers or acquisitions at a sale price of $20 million to $100 million “ “… this suggests that a true venture capital firm should be reverting to smaller-scale funds invested in early-stage companies” Alan Patricof The “Grandfather of Venture Capital”, Founder GreyCroft Ventures, Patricof & Company/Apax Partners

3. Accelerate over the next 5 years Be driven by technology innovation and entrepreneurial companies Create extraordinary investment opportunities A Rapidly Changing Landscape Traditional media and entertainment industries are witnessing unprecedented levels of change that will:

4. Traditional media and entertainment has been the sector most impacted by innovation in new technology Technology innovation is forcing traditional media and entertainment incumbents to “outsource” innovation through acquisition at rapid pace Why Online Media and Entertainment Distribution Monetization Content

5. Investment Thesis Disruption of traditional media & entertainment Industries Evolution of traditional venture capital economics New realities for online media start-ups Transmedia Capital

6. 2,700 record stores closed in the last 4 years 5,000 record industry employees laid off since 2000 The Decline of Traditional Media The Music Industry decline over 25% since 2000 Source: Rolling Stone Magazine

7. 20 year trend of declining sales and circulation Core revenue model (subscription/classifieds) rapidly being displaced Print media losses accelerate The Decline of Traditional Media Q4 2008 newspaper revenues $1Billion less than same quarter previous year, and lowest since 1996

8. Erosion of upfront buys and dilution of ad rates $80B domestic TV ad market re-allocating budgets online rapidly “ On demand” viewing changing engagement models The Decline of Traditional Media 18-24 year olds spend more time online than watching TV Source: Nielsen Media Research

9. Massive one-time shift of ad dollars to online in-process 30% of media consumption is online, but online ad spending still less than 10% of marketing budgets Online ad budgets on track to surpass traditional media Radio by 2008 Print by 2010 While Online Growth Surges Source: Yankee Group Online advertising market expected to double in 5 years $50.1B predicted by 2012 *

10. Online Advertising Growth in $Billions Source: pwc/iab

11. Investment Thesis Disruption of traditional media & entertainment Industries Evolution of traditional venture capital economics New realities for online media start-ups Transmedia Capital

12. “ On-demand” global workforce increases productivity Lower costs for equipment, connectivity, storage Open source platforms reduce software costs/complexity Social media pipeline powers massive viral adoption Average angel round of investment $250K* Exits are occurring sooner and with more frequency New Reality for Startups * Center for Venture Research Time and cost to Develop-Launch-Grow-Exit shrinking fast

13. Investment Thesis Disruption of traditional media & entertainment Industries Evolution of traditional venture capital economics New realities for online media start-ups Transmedia Capital

14. Declining demand for large initial financing Avg. VC investment size in 2007 - $7.7M* Experienced, deal savvy entrepreneurs don’t need it Limited domain expertise and relevant value-add Exit requirements pre-defined by aggressive multiples Current VC Dilemma * Center for Venture Research Increasingly larger VC funds require big investment rounds

15. The Venture Capital Gap $3M - $10M $10K - $100K $100K - $3M Year 1 Year 2 Year 3 Friends & Family Traditional Venture Capital Transmedia Capital

16. 872 media acquisitions in 2007 32% higher than in 2006 Total value hits $104 billion Volume of exits holding strong regardless of softer economy Media Markets Continue to Grow Online media & marketing services set record acquisition volume

17. Record Acquisition Activity Continues, even in the Face of Global Financial Crisis

18. Disruption Creates Opportunity Sampling of the 834 Acquisitions in 2007, all online media start-ups 3 AOL Feed module distribution 7x $3.5M $25M Sphere 1 Electronic Arts MMO social networking site 10x $3M $30M Rupture 5 Hearst Matchmaking, social networking 10x $1M $10M eCrush 1 Conde Nast Social News 100x $100K $10M Reddit 1 Yahoo Video creation 10x $1M $10M Jumpcut 1 Yahoo User data acquisition and tracking 10x $1M $10M MyBlogLog 2 Yahoo Website discovery 50x $1.5M $75M Stumbleupon 3 Google RSS feed subscription and distribution 12x $8M $100M Feedburner 4 Fox Personal media hosting 22x $13.5M $300M Photobucket 3 Cox Vertical Ad network 11x $27M $300M Adify Yrs Acquirer Value Prop ROI Raised Deal Company Average ROI = 24x Avg. Total Funding = $6M Avg. Time to Exit = 2.4 years

19. Investment Themes Video On Demand Social Commerce Media Affinity Ad Models Vertical ad networks Product engagement Advanced web analytics Place shifting New Current Youtube, Sling Media, Tivo Netflix, Joost, Facebook Craigslist, Digg, Glam Last.fm, iTunes, MySpace Legacy TV Film Print Music

20. Network of active industry entrepreneurs/engineers/domain experts provide “mentor capital” to portfolio companies Source of significant deal flow and due diligence resources 12 month commitment to each portfolio company to help accelerate growth Paid a stipend and participate in the General Partner carry Dedicated relationship with Transmedia Capital Unique Venture Partner Structure Sampling of Venture Partner current or previous company affiliations: Venture Partners provide Mentor Capital to each and every portfolio company

21. Fund Allocation Strategy Establish early foothold Mentor network increases success rate Support performers vigorously Maintain ~15% position Side Car provides additional LP upside Deliver 4X – 6X multiple over life of fund Seed Stage Investment Level $150K-$1M Pre-Money $2.5M-$6M Stage Partial team, Alpha product Volume 8-10 per year Growth Investment level $1M-$3M Pre-Money $30M - $100M+ Stage Major growth, rapid adoption amongst customers, revenue trajectory Volume 1-3 per year Follow-On Investment Level $400K - $2.5M Pre-Money $8M- $20M Stage Live product, customers, initial revenues Volume 4-6 per year

22. Seasoned management team of industry insiders Highly sector-specific approach (media/advertising) Unparalleled “under-the-radar” access to deal flow Extended mentor network increases success rate, deal-flow and enhances due-diligence of prospects No comparable existing investment group Why Transmedia Abundant exit opportunities over next 5 years