Web 2.O Weekly: Increased Deal Activity But Deal Sizes Drop

SOFTWARE & SERVICES 30 JUNE 2009
DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
INCREASED DEAL ACTIVITY; BUT DEAL SIZES DROP

S E CO N D Q UA RT ER MA RG INAL L Y B ET T ER T HAN F IR ST Q UA RT ER
The month of June saw 35 financings totalling $175.1 million. From a sector perspective, Social Networking saw the
highest level of activity over the last three months, with Ad Network, Media, Gaming, and Video attracting the most
interest. The Social Network sector benefited from a $200 million investment in Facebook by Digital Sky Technologies
in the month of May. The other transaction of size that gained much real estate on business news was Disney’s
investment in Hulu (in May).
Financing for the second quarter of 2009 marginally passed that raised in the first quarter of 2009 – reversing the
downtrend since the second quarter last year. However, for the period ended Q2/CY09, total capital raised was below
the Q2/CY08 level. The total capital raise in Q2 was $658.8 million, buoyed by the $200 million Facebook transaction,
and is well below Q2/CY08 totals ($1.3 billion).
Financing by Type Financing by Type

(Number of Deals) (Amount raised)
100 1,200.0
90
143.0
5 1,000.0
3
80
5
70
800.0
147.1
35 40
60
5
32
Late Stage (D/E)
(US$m)
Late Stage (D/E)

600.0
(#)
50 Mid Stage (B/C) Mid Stage (B/C)

780.0 35.0 53.5
2 Early Stage (Angel/A) Early Stage (Angel/A)
24
222.3
40 2
501.4
20 400.0
361.8
30 400.3
21
27.7
45 229.7
20 42
39
200.0
32 212.4
25
10 18 197.4
183.2 180.1
149.7 150.6
75.3
- -
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09
Capital Market Activity: The month of June closed with 35 financings totalling $175.1 million led by the $16 million
capital raise by Sugar Inc., closely followed by Tumri ($15 million), Boku ($13 million), Wimba ($12 million), and
Grab Networks ($12 million). All other transactions were less than $10 million. The average value for the month is
$4.7 million, below the average value for May of $6.4 million (excluding the $200 million investment in Facebook) on
16 financings. The April average was $6.2 million on 23 financings
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 13), with 26 companies showing positive returns on the week.
VOIS Inc. (VOIS-OTCBB) led the group with a 200.0% return, while Actoz Soft Co. Ltd. (A052790-KOSE) had the
worst return, dropping 14.3% in the week.
This report has been created by Anal ysts that are employed by Research Capital Corporation, a Canadian Investment Dealer.
www.researchcapital.com
Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
Page 2
THE WEB 2.0 UNIVERSE

Ninety public Web 2.0 companies identified: Our Web 2.0 universe contains 90 companies, with a combined market cap
of ~$56 billion (Figure 1). The average market cap for the group is ~$622 million (but a median of only $50.5 million), with
average trailing revenue of $152.5 million (median $53.7 million). The companies are also generally profitable, with a
median EBITDA margin of 13.2%. On a valuation basis, the overall average is 5.3x trailing revenue (median 1.5x) and 9.9x
trailing EBITDA (median 9.3x). Fourteen of the companies have more than 500 employees.
C omparable C ompany A nalys is > W eb 2.0
Trading Cu rrent U S D Market U S D LT M To tal US D L TM T otal E BITDA T E V/LT M TE V /L TM
C om pany Nam e L TM as o f T ic ker E xc hange Currenc y HQ P ric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenu e E BITDA E mplo yees
Acce le riz e N ew Me dia, Inc. 3 /31 /200 9 AC LZ OT C B B US D U nited S ta tes 0 .40 1 1.1 4.1 (4 .4) NM 3.9x - 11
Actoz S of t C o., L td. 3 /31 /200 9 A0 527 90 K OS E KR W S outh K orea 24 000 16 0.4 90. 2 1 9.6 21 .7% 1.5x 6. 7x NA
AQ Inte ractive , Inc. 3 /31 /200 9 38 38 TSE J PY J apan 71 200 4 0.4 64. 5 4 .1 6 .3% 0.2x 2. 8x NA
As s ocia ted Media H oldings Inc. 6 /30 /200 7 AS MH OT C P K US D U nited S ta tes 0 .02 0 .9 0.1 (2 .3) NM 1 9.2 x - 3
B igstring Co rp. 3 /31 /200 9 BS GC OT C B B US D U nited S ta tes 0 .03 1 .7 0.1 (2 .0) NM 4 1.6 x - 4
B e tawave Corpora tion 3 /31 /200 9 B W AV OT C B B US D U nited S ta tes 0 .10 2 .9 8.4 (1 2.6) NM - - 53
B e yond Commerce, Inc. 3 /31 /200 9 B Y OC OT C B B US D U nited S ta tes 0 .65 2 9.3 7.1 (9 .5) NM 4.8x - 69
B right T hings plc 9 /30 /200 8 AIM :B G T AIM GBP U nited K ingdom 0 .01 4 .5 0.3 (1 .9) NM 1 6.1 x - 9
B roa dW ebAs ia Inc. 9 /30 /200 8 BW BA OT C P K US D U nited S ta tes 0 .23 1 9.5 0.0 (4 .6) NM - - 46
C DC C orp. 3 /31 /200 9 C HIN .A N as da qG S US D H ong K ong 1 .55 16 4.4 389 .9 3 0.8 7 .9% 0.5x 5. 8x NA
C ha ngyou. com Limite d 3 /31 /200 9 C Y OU N as da qG S US D C hina 43 .63 2,3 99.7 222 .5 13 5.1 60 .7% 9.9x 16 .4x 6 28
C hina G ate wa y C orpora tion 9 /30 /200 8 C GW Y OT C P K US D U nited S ta tes 0 .02 0 .3 6.7 (6 .6) -9 8.9% 0.0x - 37
C hine s e G amer In ternational 3 /31 /200 9 G T S M:308 3 GTSM TWD T aiwan 420 .00 1,0 73.3 56. 1 3 1.4 56 .0% 1 8.0 x 32 .1x NA
C ornerW orld C orporation 1 /31 /200 9 C WR L OT C B B US D U nited S ta tes 0 .06 3 .9 1.3 NM NM 4.1x - NA
C yberplex Inc. 3 /31 /200 9 T S X:C X TSX C AD C ana da 1 .65 9 2.3 70. 4 7 .3 10 .3% 1.3x 12 .2x NA
D ADA S pA 3 /31 /200 9 C M:D A CM EUR Ita ly 6 .30 14 3.5 236 .1 3 4.5 14 .6% 0.8x 5. 6x 5 78
D XN Holdings B hd 2 /28 /200 9 DXN KLSE MY R Ma la ys ia 0 .39 2 5.1 78. 1 1 0.7 13 .7% 0.5x 3. 8x NA
D ibz Inte rnational, Inc. NA DIB Z OT C P K US D U nited S ta tes 0 .00 0 .0 NA NM NM - - NA
D igitalP ost Inte ra ctive , Inc. 3 /31 /200 9 DG LP OT C B B US D U nited S ta tes 0 .04 2 .6 0.7 (2 .6) NM 5.8x - 7
D igitalT own, Inc. 2 /28 /200 9 DG T W OT C B B US D U nited S ta tes 2 .05 5 5.5 NM (3 .0) NM - - 3
D olphin D igital Me dia, In c. 3 /31 /200 9 DP DM OT C B B US D U nited S ta tes 0 .47 2 4.3 0.8 (3 .7) NM 3 2.7 x - NA
E olith C o. L td. 1 2/31 /200 8 A0 410 60 K OS E KR W S outh K orea 790 .00 4 4.7 14. 4 (3 .4) -2 3.6% 3.2x - NA
E xte ns ions , Inc. 3 /31 /200 9 E XT I OT C P K US D U nited S ta tes 0 .10 4 .4 NM NM NM - - 2
F inancia l Media G roup, Inc. 2 /28 /200 9 F NG P OT C B B US D U nited S ta tes 0 .00 0 .2 7.2 2 .4 34 .1% - - 22
F luid M us ic Ca nada, Inc. 3 /31 /200 9 T S X:F MN TSX C AD U nited S ta tes 0 .79 3 5.8 5.0 (6 .9) NM 5.6x - NA
F rogs te r Interactive P icture s AG 1 2/31 /200 8 F RG XT R A EUR G ermany 9 .90 3 2.7 3.2 (6 .1) NM 9.6x - NA
G a ma nia D igital E ntertainment C o., L td. 3 /31 /200 9 61 80 GTSM TWD T aiwan 58 .00 26 7.7 125 .9 2 0.9 16 .6% 1.9x 11 .7x NA
G a me On C o L td. 3 /31 /200 9 38 12 TSE J PY J apan 107 400 10 8.3 76. 7 1 8.2 23 .7% 0.6x 2. 6x NA
G e oS e ntric O yj 3 /31 /200 9 G E O1 V H LS E EUR F inland 0 .04 5 0.5 5.9 (1 5.4) NM 7.8x - 1 08
G iant Intera ctive G roup, Inc. 3 /31 /200 9 GA NYS E US D C hina 8 .39 1,8 94.9 218 .9 NM NM - - 1, 570
G iga Media Ltd. 3 /31 /200 9 G IG M N as da qG S US D T aiwan 5 .98 32 6.0 183 .6 NM NM 1.4x - NA
G ravity C o., L td 9 /30 /200 8 GR VY N as da qG M US D S outh K orea 1 .09 3 0.3 38. 2 7 .3 19 .2% - - 6 36
G ree, Inc. 6 /30 /200 8 T S E : 363 2 TSE J PY J apan 6 750 1,5 72.3 30. 6 1 1.0 36 .0% 4 8.6 x - NA
G ungH o O nline E ntertainment, Inc. 3 /31 /200 9 37 65 OS E J PY J apan 240 100 28 6.8 107 .5 1 9.3 18 .0% 2.4x 13 .4x NA
H anbitS of t, Inc. 3 /31 /200 9 A0 470 80 K OS E KR W S outh K orea 4 430 7 5.8 53. 9 (1 4.5) -2 6.8% 1.1x - NA
IAC /InterActiveC orp. 3 /31 /200 9 IAC I N as da qG S US D U nited S ta tes 15 .91 2,4 01.1 1 ,40 6.4 4 2.6 3 .0% 0.4x 12 .1x 3, 200
IAS E nergy, Inc. 1 /31 /200 9 IAS C.A OT C B B US D C ana da 0 .20 1 4.0 0.0 (0 .8) NM - - NA
is ee media Inc. 3 /31 /200 9 IE E T S XV C AD C ana da 0 .08 3 .5 1.5 (4 .7) NM 1.8x - NA
J umbuck E ntertainment P ty Ltd. 1 2/31 /200 8 AS X:J MB AS X AU D Aus tra lia 0 .39 1 5.5 14. 4 5 .4 37 .2% 0.7x 2. 0x 72
J umpT V Inc. 3 /31 /200 9 T S X:J T V TSX C AD C ana da 0 .74 7 2.7 18. 1 (1 1.8) -6 5.2% 3.5x - 2 37
K A B D is tribution Inc. 3 /31 /200 9 T S X:K AB TSX C AD C ana da 0 .63 7 6.2 71. 1 8 .5 11 .9% 1.1x 9. 6x NA
K ings oft Co. Ltd. 3 /31 /200 9 38 88 S E HK HKD C hina 5 .69 79 6.5 129 .0 5 2.0 40 .3% 5.8x 14 .3x 2, 271
Lingo Media Corporation 3 /31 /200 9 T S XV : LM T S XV C AD C ana da 1 .10 1 2.2 0.9 (1 .5) NM 1 2.6 x - NA
Live Wo rld Inc. 3 /31 /200 9 LV WD OT C P K US D U nited S ta tes 0 .06 1 .9 11. 4 (0 .0) -0 .4% 0.1x - NA
LookS mart, Ltd. 3 /31 /200 9 LOOK N as da qG M US D U nited S ta tes 1 .14 1 9.5 60. 7 (3 .8) -6 .3% - - 90
Magnitude Information S ys tems Inc. 3 /31 /200 9 MA G Y OT C B B US D U nited S ta tes 0 .01 5 .5 0.1 (3 .1) NM - - 14
Mixi, Inc. 3 /31 /200 9 21 21 TSE J PY J apan 589 000 94 4.4 125 .7 4 4.6 35 .4% 6.6x 18 .5x NA
Mode rn Times G roup Mtg AB 3 /31 /200 9 MT G B OM S EK S weden 217 1,8 50.0 1 ,74 1.6 26 6.8 15 .3% 1.4x 9. 0x 2, 969
MOK O.mobi L imited 1 2/31 /200 8 MK B AS X AU D Aus tra lia 0 .08 5 .2 1.2 (2 .4) NM 3.5x - NA
Myriad G rou p AG 1 2/31 /200 8 MY R N SWX C HF S witzerla nd 5 9 8.0 40. 0 0 .8 1 .9% 2.7x - 4 05
N E OW IZ G ames C orpora tion 1 2/31 /200 8 A0 956 60 K OS E KR W S outh K orea 32 100 26 3.9 193 .4 5 1.9 26 .8% 1.3x 4. 9x NA
N etD ragon W ebS oft, Inc. 3 /31 /200 9 77 7 S E HK HKD C hina 5 .03 34 3.1 86. 9 3 4.4 39 .5% 2.3x 5. 9x 2, 426
N ete as e.com I nc. 3 /31 /200 9 NT E S N as da qG S US D C hina 36 .90 4,5 40.6 470 .4 30 5.7 65 .0% - - NA
N eXplore Corpora tion 9 /30 /200 7 N XP C OT C P K US D U nited S ta tes 0 .61 3 4.0 NM (4 .9) NM - - 19
N gi G roup Inc. 3 /31 /200 9 24 97 TSE J PY J apan 35 900 .00 4 6.3 92. 1 1 1.0 12 .0% 0.1x 0. 5x NA
N orthgate Te chnologies L imited 3 /31 /200 9 59 005 7 BS E INR India 42 .05 3 0.5 116 .5 (2 7.3) -2 3.5% 0.3x - NA
Open T e xt Corp. 3 /31 /200 9 OT E X N as da qG S US D C ana da 36 .70 1,9 31.3 782 .6 19 9.2 25 .5% 2.6x 10 .0x 3, 400
Openwave S ys tems Inc. 3 /31 /200 9 OP W V N as da qG S US D U nited S ta tes 2 .41 20 0.8 197 .2 (2 .1) -1 .0% 0.5x - 6 30
P e rf ect W orld C o., Ltd. 3 /31 /200 9 PW R D N as da qG S US D C hina 30 .55 1,4 85.8 228 .1 12 4.6 54 .6% 0.3x 0. 5x 2, 096
Quepa s a C orp. 3 /31 /200 9 QP S A OT C P K US D U nited S ta tes 0 .68 8 .6 0.1 (1 0.8) NM - - 74
OA O R B C Information S ys tems 1 2/31 /200 7 R BCI R TS US D R us s ia 0 .90 12 4.8 151 .8 1 9.8 13 .1% 0.0x 0. 2x NA
S handa Interactive E ntertainme nt L td. 3 /31 /200 9 S N DA N as da qG S US D C hina 57 .20 3,9 68.7 570 .0 26 0.8 45 .8% 0.2x 0. 3x NA
S hutte rf ly, Inc. 3 /31 /200 9 S F LY N as da qG S US D U nited S ta tes 14 .81 37 2.8 215 .2 2 8.3 13 .2% 1.4x 10 .8x 5 14
S K C ommunications Co., Ltd. 1 2/31 /200 8 A0 662 70 K OS E KR W S outh K orea 9 810 .00 32 1.2 179 .8 1 1.7 6 .5% 1.8x 27 .5x NA
S N AP Inte ra ctive , Inc. 3 /31 /200 9 S T VI OT C B B US D U nited S ta tes 0 .45 4 .9 3.3 0 .9 28 .0% 1.0x 3. 7x 11
S N M G lobal H oldings 9 /30 /200 8 S N MN OT C P K US D U nited S ta tes 0 .01 0 .0 2.0 (0 .7) -3 4.8% 1.1x - 33
S ocia l Media V e nures , Inc. 1 2/31 /200 8 S MV I OT C P K US D U nited S ta tes 0 .01 0 .0 0.1 (0 .1) -6 0.5% 0.0x - NA
S ocia lwis e, Inc. 3 /31 /200 9 S C LW OT C B B US D U nited S ta tes 0 .68 2 9.5 0.0 (4 .8) NM - - NA
S ohu. com Inc. 3 /31 /200 9 S OH U N as da qG S US D C hina 65 .87 2,5 20.4 460 .0 20 0.5 43 .6% 4.7x 10 .7x 3, 197
S park N etworks , Inc. 3 /31 /200 9 LOV AME X US D U nited S ta tes 2 .47 5 0.8 54. 3 1 1.8 21 .7% 0.9x 4. 4x 1 83
S pectrumDN A, Inc. 3 /31 /200 9 S P XA OT C B B US D U nited S ta tes 0 .20 9 .7 0.1 (2 .6) NM - - 7
T encent Holdings L td. 3 /31 /200 9 70 0 S E HK HKD C hina 94 .55 22,0 11. 2 1 ,20 3.3 57 6.6 47 .9% 2 0.0 x 41 .6x 6, 194
T he P arent C ompany 8/2/2008 K ID S .Q OT C P K US D U nited S ta tes 0 .02 0 .4 112 .0 (1 3.5) -1 2.0% 0.2x - 3 47
T he 9 L imited 1 2/31 /200 8 N CT Y N as da qG S US D C hina 10 .63 28 5.1 249 .9 8 4.2 33 .7% - - NA
T he S treet.com, Inc. 3 /31 /200 9 TSCM N as da qG M US D U nited S ta tes 2 .16 6 6.1 67. 0 1 .9 2 .9% 0.0x 0. 8x 3 10
T otal S port Online A S 3 /31 /200 6 T OS O OT C NO NOK N orwa y 0 0 .1 2.1 (1 .1) -5 0.6% 4.6x - 16
T ree.C om, Inc. 3 /31 /200 9 TR EE N as da qG M US D U nited S ta tes 9 .65 10 4.2 215 .6 (1 3.3) -6 .2% 0.4x - 7 00
U nis erve C ommunications Corp. 2 /28 /200 9 T S XV : US S T S XV C AD C ana da 0 .08 1 .7 22. 5 0 .1 0 .2% 0.2x - NA
U nited Online Inc. 3 /31 /200 9 U NT D N as da qG S US D U nited S ta tes 6 .47 54 0.8 811 .2 17 7.3 21 .9% 1.0x 4. 7x 1, 469
U OMO Media , Inc 1 /31 /200 9 U OMO OT C B B US D C ana da 0 .15 1 2.9 0.6 (0 .5) -7 8.2% 2 0.8 x - NA
V a lueC lick Inc. 3 /31 /200 9 V C LK N as da qG S US D U nited S ta tes 11 99 3.2 591 .7 10 5.5 17 .8% 1.5x 8. 4x 1, 189
V O IS , Inc. 3 /31 /200 9 V OIS OT C B B US D U nited S ta tes 1 8 .7 0.0 (1 .1) NM - - 4
W ebze n Inc. 3 /31 /200 9 W ZE N N as da qG M US D S outh K orea 3 4 1.0 22. 5 (0 .4) -1 .9% - - 3 14
W izza rd S of twa re Corpora tion 3 /31 /200 9 W ZE AME X US D U nited S ta tes 0 .51 2 4.4 5.6 (5 .3) -9 4.5% 4.6x - 1 10
W orlds .com Inc. 3 /31 /200 9 W DD D OT C B B US D U nited S ta tes 0 .12 6 .3 0.0 (0 .8) NM - - 1
W ynds torm C orporation NA W YND OT C P K US D U nited S ta tes 0 .04 0 .7 NA NM NM - - NA
XIN G AG 3 /31 /200 9 O1B C XT R A EUR G ermany 29 .88 22 1.3 53. 2 1 6.6 31 .2% 3.2x 10 .2x 2 39
Y e dangOnline Corp. 1 2/31 /200 7 A0 527 70 K OS E KR W S outh K orea 8 400 .00 10 3.0 53. 6 1 1.5 21 .6% 2.1x 9. 8x NA
Y nk K orea Inc. 1 2/31 /200 8 A0 237 70 K OS E KR W S outh K orea 6 800 .00 2 8.4 11. 1 1 .2 10 .5% 2.5x 23 .5x NA
ZipLocal Inc. 3 /31 /200 9 T S XV : ZIP T S XV C AD C ana da 0 .01 0 .3 2.6 (2 .0) -7 8.3% 0.6x - NA
H igh 22,0 11. 2 1 ,741 .6 57 6.6 65 .0% 4 8.6 x 41 .6x 6,1 94
Low 0 .0 0.0 -27.3 -9 8.9% 0.0x 0. 2x 1
A vera ge 622.7 152 .5 33.2 6.7% 5.3x 9.9x 745
Median 5 0.5 53. 7 0 .9 13 .2% 1.5x 9. 3x 3 10
Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
Page 3
CAPITAL MARKETS ACTIVITY (M&A AND FINANCING)

More deals, smaller sizes: The month of June closed with 35 financings totalling $175.1 million led by the $16 million
capital raise by Sugar Inc, closely followed by Tumri ($15 million), Boku ($13 million), Wimba ($12 million), and Grab
Networks ($12 million). All other transactions were less than $10 million. The average value for the month-to-date is $4.7
million, below the average value for May of $6.4 million (excluding the $200 million investment in Facebook) on 16
financings. The April average was $6.2 million on 23 financings.
Financing Activity Last Three Months
200.0 7.0
6.2 6.4
180.0
6.0
160.0
5.0
140.0
4.7
120.0
4.0
(US$m)
(US$m)
100.0
3.0
80.0
60.0
2.0
40.0
1.0
20.0
0.0 0.0
Apr-09 May-09 (excl FB) Jun-09
Total Average
Figure 2. Financings, Last Three Months

Source. Company reports
Sugar Inc. leads capital raise: The capital raise from Sugar Inc. for $16 million was the largest deal in June. Five of the
35 deals in the month were greater than $10 million. For additional details, see Figures 30 and 31 (at end of note). Digital
Sky Technologies announced a $200 million investment in Facebook in May, the largest deal so far in the last twelve
months. The Facebook transaction aside, fourteen of the 20 deals in May were equal to or greater than $5 million. 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 $75 million.
(US$m)
0.0
50.0
100.0
150.0
200.0
250.0
Facebook
StumbleUpon
One Net Entertainment

Collective Media
Sugar Inc.
GOOM Radio
Tumri
Boku
Marin Software
The Rubicon Project
Cyberplex
Wimba
Grab Networks
FreeWheel
Figure 3. Capital Market Activity, Last Three Months

Peer39
OpenX
Cellufun
Conductor Inc.
Imeem
Goojet SAS
EveryZing
ScanScout
AdMeld Inc.
beeTV
I Love Rewards
Batanga
WonderHill
BlogHer Inc.
Gist
blueKiwi Software SA
Nokeena
Fuhu Inc.
Sense Networks
Azuki Systems
Zoosk
Gather
TimeBridge
Taomee
DocuSign
OLX
Viximo
DoubleTwist
IMShopping
Socialtext
Animoto
GameGround
Mixercast
Medialets
RingRevenue
SoundCloud
Crowdcast
TubeMogul
YuMe
eRepublik
Newser LLC
ClickFuel
Tribal Nova
Inigral
Financing & M/A Summary - Last Three Months
AdEx Media
GROU.PS
Yapta
Resonate Networks
Tripbase
OneTXT
my6sense
Cliqset
Mo'Minis
VoxPop
Socialcast
capital activity over the last few months: Ad Network, Media, Gaming, Video, and Social Networks.
Brandtology
Scan & Target
Jodange
LiquidPlanner
TodaCell
Glubble
AdWhirl
Picaboo
Loop'd Network
Foodista
MashLogic
Jaxtr
Apr-09
Jun-09
May-09
Page 4
17 companies raising $130.2 million. We would note that the Facebook transaction at $200 million (in May) has skewed
Social Network remains the most active sector: Activity over the last three months was busiest in the Social Network
the results significantly in favour of Social Networks. Nevertheless, the following sectors continue to generate the most
sector, with 13 companies raising over $246.4 million (Figure 4). The Ad Network sector has the next highest totals, with
Page 5
Capital Market Activity by Sector - Last Three Months
300.0
250.0
200.0
(US$m)
150.0
246.4
100.0
130.2
50.0
48.3
35.8 30.2 28.4 23.0 19.5 18.3 18.2 17.5 17.0 13.0 10.4 8.0 6.8 4.7 4.4
0.0 2.0 1.3
Comment/Reputation
Social Commerce
Mobile Payment
Gaming
Travel
Media
Enterprise
Collaboration
Mobile
Blog
Search
Infrastructure
Widget
Social Networks
SAS
Video
Virtual World
Aggregation
Ad Network
Analytics
# companies
13 17 7 6 2 3 2 4 2 5 5 3 1 2 2 1 1 2 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months

Average round size decreases: On a trailing 12-month basis, total financing dollars increased slightly as of June 2009,
with average round sizes decreasing slightly (Figure 5).
Page 6
LTM Financing
4,000.0 18.0
16.0
3,500.0
14.0
3,000.0
12.0
2,500.0
10.0
(US$m)
(US$m)
2,000.0
`
8.0
1,500.0
6.0
1,000.0
4.0
500.0
2.0
0.0 0.0
Oct-06
Oct-07
Aug-08
Oct-08
Jun-05
Aug-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Dec-07
Feb-08
Apr-08
Jun-08
Dec-08
Feb-09
Apr-09
Jun-09
Total Average
Figure 5. Financings, Last 12 Months

Cumulative total nears $7.1 billion: Overall, on a cumulative basis, Web 2.0 financings have totalled nearly $7.1 billion,
with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for the
second quarter of 2009 marginally passed that raised in the first quarter of 2009 – the second straight quarter of
increased investments. However, for the period ended Q2/CY09, total capital raised was below the Q2/CY08 level. The
total capital raise in Q2 was $658.8 million buoyed by the $200 million Facebook transaction and is well below Q2/CY08
totals ($1.3 billion).
Page 7
Web 2.0 Financing (cumulative)
1,600.0 8,000.0
1,400.0 1,347.6 7,000.0
1,200.0 6,000.0
1,000.6
1,000.0 5,000.0
857.6
(US$m)
(US$m)
800.0 4,000.0
658.8
594.2 608.3
600.0 3,000.0
380.9 361.3
400.0 2,000.0
203.7
174.8177.8
200.0 132.4145.6130.4 1,000.0
88.3
51.7 33.5 61.5
38.8 24.7 22.2 43.3
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 Qtr2
2004 2005 2006 2007 2008 2009
Figure 6. Financing, Cumulative

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 79.9% of financings/M&A
involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 72.8% of
deals, while the UK and Israel took 4.9% and 4.5% share of the total number of financings, respectively (Figure 8).
Financing/M&A by Country - LTM ($) Financing/M&A by Country - LTM (#)

Israel Canada
China UK
4.7% 4.5% 4.1%
France 4.9%
3.6% France
UK
3.7%
3.4%
Israel
2.9%
ROW
Canada
2.3% 10.1%
Netherlands
1.0%
ROW
3.2%
USA
78.9%
USA
72.8%
Figures 7 & 8. Financing/M&A, by Country (LTM, $, #)

Page 8
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 9). Series B rounds are 27.8% of the total, with later-stage (Series D, E and
PIPE) deals accounting for just 7.7%.
Financing by Type - LTM
Series B
Series C
27.8%
12.8%
Series D
4.4%
Series E
0.7%
Angel/Seed
12.5%
Series A
37.0%
Debt financing
2.2%
PIPE
2.6%
Figure 9 Financing, by Type (LTM, #)

Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, C and D rounds has
all been lower than the overall average (Figure 10).
Page 9
Average financing round size
45.0
41.9
40.0
34.7
35.0
30.0
26.3 26.0
25.0 24.0
(US$m)
20.0 19.2
15.0
11.3 10.9 11.3 10.8
10.0
7.1 6.6
6.3
5.3
5.0
3.0 2.8
0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E
LTM Average Size Overall Average
Figure 10. Average Size per Round

Early stage and Mid stage companies attract the most investments: For Q2/CY09, Early and Mid stage capital raises
generated the largest number of deals, with only 5 out of 76 deals in Late stage companies (Figure 11). Early stage
(Angel/A) and Mid stage (B/C) continue to lead capital market activity for the quarter, with $222.3 million going into Late
stage companies from an overall total of $602.6 million (Figure 12). Comparing this to Q2/CY08, although the number of
financings has gone up in Q2/CY09 compared to the prior year, the total dollars raised was $602.6 million versus $1.1
billion in Q2/CY08.
Financing by Type Financing by Type

(Number of Deals) (Amount raised)
100
1,200.0
90
5 143.0
3 1,000.0
80
5
70
35 800.0
40
60 147.1
5
32
Late Stage (D/E)
(#)
50 Mid Stage (B/C) Late Stage (D

(US$m)
2 Early Stage (Angel/A) 600.0 Mid Stage (B

24 780.0 35.0 53.5
Early Stage (
40 2
20 222.3
30 501.4
21 400.0
361.8
45 400.3
20 42
39 27.7
32 229.7
25
10 200.0
18 212.4
183.2 180.1 197.4

- 149.7 150.6
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 75.3
-
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09
Figures 11 &. 12 Financing/M&A, by Country (LTM, $, #)

Page 10
CAPITAL MARKETS ACTIVITY (PRICE PERFORMANCE)

Price Performance: Our Web 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid-
2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 13).
Web 2.0 Index Price Performance

120
110
100
90
80
70
60
50
40
6/30/2008
7/14/2008
7/28/2008
8/11/2008
8/25/2008
9/8/2008
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
5/4/2009
5/18/2009
6/1/2009
6/15/2009
6/29/2009
^COMP - Share Pricing Index: Web 2.0 X (Market Cap Weights) - Index Value
Figure 13. Web 2.0 Price Performance

Source. Capital IQ
VOIS Inc. leads; Actoz Soft Co. Ltd falls: Most of the companies in our universe had positive stock price performances
over the past week (for stocks with prices greater than $1) (Figure 14), with 26 companies showing positive returns on the
week. VOIS Inc. (VOIS-OTCBB) led the group with a 200.0% return, while Actoz Soft Co. Ltd. (A052790-KOSE) had the
worst return, dropping 14.3% in the week.
Page 11
1 Week P rice P erformance

V OIS , Inc. 200.0%
Frogs ter Interactive Pic tures A G 24.5%
Chines e Gamer International 23. 7%
Changy ou.com Limited 23.3%
Openw ave S y s tems Inc. 18.7%
S hutterfly , Inc. 13.6%
Modern Times Group Mtg A B 13.3%
Northgate Technologies Limited 12.7%
Mix i, Inc. 12.6%
CDC Corp. 11.5%
S handa Interactive Entertainment Ltd. 10.4%
K ings of t Co. Ltd. 9.4%
Neteas e.com Inc. 9.2%
V alueClic k Inc. 8.1%
DA DA S pA 7.7%
United Online Inc. 7.7%
S ohu.com Inc. 7.6%
G amania Digital Entertainment Co., Ltd. 7.4%
GigaMedia Ltd. 7.4%
Y nk K orea Inc. 7.1%
Tencent Holdings Ltd. 6.4%
Perf ect World Co., Ltd. 5.6%
Open Tex t Corp. 4. 9%
Giant Interac tive G roup, Inc. 4. 9%
S park Netw orks , Inc. 3.8%
The9 Limited 0.9%
Lingo Media Corporation 0.0%
IA C/InterA ctiveCorp. -0.3%
XING A G -0.4%
Cy berplex Inc. -0.6%
NetDragon WebS of t, Inc. -2.5%
Ngi G roup Inc. -2.6%
Eolith Co. Ltd. -3. 7%
HanbitS of t, Inc. -3. 7%
Y edangOnline Corp. -4.7%
A Q Interactive, Inc. -5.3%
G ree, Inc. -5.9%
NEOWIZ Games Corporation -6.3%
G ameOn Co Ltd. -7.7%
A ctoz S of t Co., Ltd. -14.3%
-50.0% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0%
Figure 14. 1-Week Price Performance

Source. Capital IQ
Page 12
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developmen ts
C ompany Headline Notes
G eo S entric Oyj (HL S E :G E O1V ) G eoS entric O yj Adds E nglis h C a pa bility to G yP S i i G eoS entric O yj a nnounced new a va ila bility, a s well a s number of upda tes , to enha nc e the a pplic a tion ba s ed on feedba ck from its member
Applic a tion community . The c ompa ny is a dding J a va ca pa b ility in E nglis h, upda ting its iP hone and B la c kberry a pplic a tions a nd is also going l ive on
Nok ia 's O vi store. G y P S ii ha s a dded a n E nglis h la ngua ge vers ion of its J a va a pplic a tion-which wa s prev ious ly only a va ila ble in C hina in loc a l
la ngua ge. The E nglis h v ersion is a v a ila ble for downloa d now in the U S , UK a nd ma jor W es tern E uropea n ma rk ets a t www.gy psii. co m/m.
G iant Interac tive G ro u p, Inc . G ia nt I ntera c tiv e L a unc hes the G olden L a nd, I ts Firs t G ia nt Intera c tiv e G roup Inc . la unc hes the offic ia l site of T he G olden L a nd, its first We b ga me, on June 22, 2009. T he ga me will sta rt a c los ed
(N YS E :G A) W eb G a me beta tes t s oon, indic a ting tha t the lea ding C hinese online ga me develo per a nd opera tor is fora ying into the W eb ga me field. G ia nt Intera c tiv e
bega n the R & D of the ga me in April 2008. I n J uly of the y ea r, its boa rd c ha irma n a nd C E O S hi Y uzhu proposed tha t ga me a nd community
opera tors s hould work together. W hen the c ompa ny s pent U S D 51 million ta k ing a s ta k e in 51. com, a blog c ommunity , S hi dis c losed tha t
G ia nt Intera c tiv e would dip toe in the development of c a s ua l ga mes a nd W eb ga mes.
G eo S entric Oyj (HL S E :G E O1V ) E uropea n P a tent O ffi ce G ra nts a n E U -W ide P a tent G eoS entric O yj a nnounced tha t the E uropea n P a tent O ffic e ha s gra nted a n E U-wi de pa tent for the tra nsmis sion of loc ation-ba s ed
Friend Fi nding T echnology to G eoS entric O yj informa ti on between devic es a nd the subs equent publis hing of tha t informa tion for viewing on a ma p. T his fea ture represents what the
industry has c oined 'friend finding' a nd a s s uch, is the corners tone of the combina tion of mobile s oc ia l network ing a nd loc a tion ba sed
serv ices . T his signific a nt Friend F inding pa tented technology ena bles G yP S ii users to loca te a nd s ha re informa tion with friends to v iew on a
ma p, a nd further protec ts intellec tua l property ena bling k ey fea tures s uc h a s pus hing user genera ted pla c e c ontent o r reques ting a friend's
loca tion s o they c a n meet-up, on mobile devic es . The compa ny us es the pa tented tec hnology in the fri end finding c a pa bility to a llow users to
sha re their loc a tion over a mobile devic e. U sers c a n reques t or sha re their loc a tion a nd a fa vorite pla c e loca tion with one or ma ny friends ,
from mobile devic e to mobile devi ce, a nd view the lo ca tion on a ma p on the devic es. T he pa tent is the firs t of 6 pa tent tec hnologies
developed by G yP S ii to be gra nted by the P a tent O ffic e. T he c a pa bility c a n a lso be a pplie d in other uses suc h a s Fleet M a na gement, F ield O p
V OIS , Inc . (OTC BB :VOIS ) V O IS I nc. F iles Amendment to Articles of Inc orpora ti on O n J une 16, 2009 the B oa rd of D irectors of V O I S I nc . a pproved a 100 for one
forwa rd s toc k s plit of the c ompa ny 's is sued a nd outs ta nding common s tock in
the form of a div idend. I n c onjunction therewith, on J une 18, 2009 V O I S I nc. filed
Artic les of Amendment to Articles of Inc orpora tion with the S ecreta ry of S ta te of F lorida . No s ha reholder c onsent wa s required in this a c tion.
The effectiv e time of the forwa rd stoc k split will be c lose of bus iness on J uly 8, 2009.
T he9 L imited (Nas daqG S : NC TY) The9 L imited L ays O ff E mploy ees in B ei jing The9 L imi ted dismis sed employees of its B eijing bra nc h on J une 22, 2009. T he c ompa ny decides to ha nd ov er the opera ting right of F IF A
O nline 2 a nd A tla ntica to its S ha ngha i hea dqua rters , ins tea d of the B eijing bra nch a s pla nned. T he compa ny s a id tha t employees of its
B eijing bra nc h should not receive interv iews . If they v iola te it, the compa ny wi ll not giv e them demis sion compens a tions , ev en s ue them in
court, bec a use they ex pose busi ness s ec re ts .
2K S po rts Inc .; T enc ent H oldings Ltd. 2K S ports P a rtners with Tenc ent to B ring NB A(R ) 2 K 2K S ports I nc. a nnounc ed its pa rtners hip with Tenc ent H oldings Ltd. to co-dev elop the online v ersion of N B A 2K a nd distribute it to C hina
(S E HK :700) O nline to Asia a nd other k ey ma rkets. 2K S ports ha s s ecu red a multi-yea r lic ense to devel op the online s imula tion ga me, which will inc lude a ll of the N B A
tea ms , a s well a s c urrent a nd retired N B A pla yers . China experienc ed signific a nt online ga ming growth in 2008 a nd genera ted $2. 75 billion in
revenue-a 61% inc rea s e from the prior yea r.
W o oz yFly, Inc . (OTC BB :WZYF ) W oozy Fly I nc. Triggered R epa y ment O bliga tions of its W oozyF ly I nc. a nnounc ed tha t the filing of the C ha pter 11 C a se c onstituted a n ev ent of defa ult or otherwis e triggered repa yment obliga tions
S ecu red C onvertible N otes Due June 30, 2011 under the C ompa ny's 6% S ecured C onv erti ble N otes due J une 30, 2011. A s a res ult, a ll indebtednes s outs ta nding under thes e fa c ilities a nd
the notes beca me a utoma tic a lly due a nd pa y a ble, s ubject to a n a utoma tic s ta y of a ny a ction to collec t, a ss ert, or rec over a c la im a ga ins t the
Compa ny a nd the a pplica tion of a pplica ble ba nk ruptc y la w.
is eemedia Inc . (T S XV:IE E ) G C -G loba l Ca pita l C orp. a nd I seemedia I nc . E nter into G C -G loba l C a pita l C orp. a nd iseemedia Inc . a nnounc ed the c ompletion of a sec ured loa n in the princ ipa l a mount of $1, 000,000. The twelve
$1,000, 000 L oa n Agreement month s ec ured L oa n bea rs interest a t 12% per a nnum, pa ya ble monthly . As c onsidera tion for providing the L oa n, G loba l C a pita l will be
iss ued 1, 500, 000 c ommon sha res of iseemedia a t a deemed price of $0. 09 per sha re.
B eyond Co mmerc e, Inc . B eyond C ommerce, Inc . Announc es L oca l AdL ink's B eyond C ommerce, I nc . a nnounced the P re-L a unc h of L oca lAdL ink into the Aus tra lia n ma rk et. The Aus tra lia n ma rket pres ents a luc ra tiv e
(OT CB B: B YOC) E xpa ns ion into Austra lia expa ns ion opportunity for L oca lAdL ink . L oc a lAdL ink is an online a dvertising serv ice tha t ena bles loc a l bus ines ses to rea c h loca l cus tomers .
The cus tomer fa c ing W eb s ite L oc a lAdL ink. com is a loca l sea rc h directory a nd a c ts a s the c entra l hub for the L oca lAdLin k tec hnology. When
a c ustomer v isits L oc a lAdL ink .c om, the proprieta ry geo-ta rgeting technology identifies their loc a tion a nd s erves up loc a l bus ines ses i n their
zip code. A c ustomer c a n perform a dditiona l s ea rc hes for loc a l bus iness es a nd servic es a cros s a complete s election of ca tegories a nd get
the informa tion they require.
IAC /InterAc tiveC orp. (Nas daqG S : IAC I) IAC /InterActiveC orp. Appoints R ic ha rd F. Z a nnino to the E ffectiv e J une 24, 2009, R ic ha rd F . Z a nnino, wa s elec ted to the B oa rd of D irectors of I AC /I nterAc tiv eCorp. a nd a ppointed to the Audit
B oa rd of Direc tors a nd to the Audit Committee Committee of I AC 's B oa rd of D irectors . Mr. Z a nnino is a globa l media a nd reta il exec utive a nd a dv isor.
U nis erve C ommu nic ations C orp. Unis erve C ommunic a tions C orp. Announc es Unis erve Communica tions C orp. a nnounced tha t Mic ha el S chmidt ha s been a ppointed a s P res ident of the c ompa ny. P rior to re-joining
(T S XV:U S S ) Ma na gement C ha nges Unis erve, from his prev ious role a s V P , M a rketing a nd S a les , Mr. S chmidt overs a w the s a les a nd ma rk eting function for a s ucc es sful
telec ommunic a ti ons compa ny . The compa ny a ls o a nnounc ed the a ddition of B ruc e S a nderson, V ic e P resident P roduct D evelopment, to its
ma na gement tea m. Mr. S a nders on will be res ponsible for dev eloping a suite of products to meet the needs of the sma ll a nd medium s iz ed
busines s c ustomer.
A irMedia G rou p Inc . S ohu.c om N ot B uy ing AirM edia G roup S ohu.c om I nc. does not pla n to buy AirMedia G roup I nc ., S ohu's s pok esma n told Interfa x on J une 26, 2009. " W e ha v e no pla n to a cquire
(N as daqG M:AMCN ); S o hu.c om Inc . outdoor a dvertising c ompa nies , inc luding A irMedia , a nd we ha ve no idea of where the rumor c a me from," L iu Xi nzhi, S ohu's s pokes ma n,
(N as daqG S :S OH U) sa id. C hines e W eb site T ec hW eb.c om. c n reported on Ju ne 25 tha t S o hu is pla nning to a c quire AirM edia , c iting a n a nony mous inves tment
banker a s a sourc e.
S pec trumD NA, Inc . (OTC BB :S P XA) S pec trumDN A, I nc. Announc es B oa rd C ha nges O n J une 22, 2009, Ja mes C . Ac kerly s ubmitted to the boa rd of direc tors of S pec trumDN A, I nc. a nd the c ompa ny a cc epted, M r. Ac kerly 's
resigna tion from the boa rd of direc tors effective immedia tely. O n J une 23, 2009, the boa rd of directors a ppointed J eff Nola n to serv e a s a
member of the c ompa ny 's boa rd of direc tors, effec tive June 23, 2009. N ola n will prov ide c ons ulting serv ic es to the c ompa ny in rela tion to the
opera tions of the compa ny , its s tra tegic pla nning, ma rk eting, a dvertising a nd busines s devel opment, and suc h other a rea s a s the pa rties
ma y a gree from time to time.
DADA S pA (C M:DA); F ueps S .p. A. ; R CS DAD A S pA (C M: D A) s igned a n a greement to a c quire a DAD A S pA (C M: D A) s igned a n a greement to ac quire a 51% sta ke in Fueps S . p. A. from R C S D igita l for €1. 4 million on J une 26, 2009.
Digital 51% sta ke in F ueps S . p.A . from R C S D igita l fo r €1. 4 Under the terms , €1.4 million will be pa id in 8 qua rterly deferred insta llments . For the y ea r ending 2008, F ueps recorded revenues of
million. a pproxima tely €0. 64 million and a nega tive E B I TD A of €0. 75 million. The dea l is expected to be c ompleted within the next one or two
months .
MOK O.mobi Limited (AS X:MKB ) MO K O . mobi L imited L a unc hes on S econd I ndia n C arrier MO K O . mo bi L imited ha s la unc hed on I dea C ellula r I ndia a nd ha s bec ome the s ec ond I ndia n c a rrier la unch for MO K O .mobi this month.
MO K O . mo bi is loc a lis ed for an Ind ia n a udienc e a nd will be developed to incl ude c omplimenta ry content tha t the c a rrier is inv olved in,
including Idea 's s pons orship of the M umba i I ndia ns IP L c rick et tea m. T he Idea vers ion of MO K O . mobi is ba s ed on a user-pa y s subs c ription
a nd premium a c tiv ity busines s model, where MO K O . mobi is pa id a sha re of a ll revenues from the mobile opera tor. T he la unch includes a
free tria l period a nd rev enues a re ex pected to begin during the s econd qua rter of the new fina ncia l y ea r.
L ingo Media C orpo ration (TS XV: L M) L ingo M edia C orpora tion, Annua l G en era l M eeting, J un L ingo M edia C orpora tion, Annua l G enera l Meeting, J un 29, 2009 L oc a tion: T oronto, O nta rio, C a na da .
29, 2009
Figure 15. Key Developments

Source. Capital IQ
Page 13
VALUATION
MMOG companies lead market-cap charts: Eleven companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 16). Fifty-seven of the 90 companies have market caps under US$100 million, with 26 under US$10
million. Online gaming companies dominate the top of the list.
Market C ap (US D m)
Tencent Holdings Ltd.
Neteas e.com Inc.
S handa Interactive 3968.7
S ohu.c om Inc. 2520. 4
IA C/InterA ctiveCorp. 2401.1
Changy ou.com Limited 2399. 7
Open Tex t Corp. 1931. 3
G iant Interactive G roup, Inc. 1894. 9
Modern Times G roup Mtg A B 1850.0
G ree, Inc. 1572. 3
Perf ec t World Co. , Ltd. 1485. 8
Chines e G amer International 1073.3
V alueClick Inc. 993. 2
Mix i, Inc. 944. 4
K ings of t Co. Ltd. 796.5
United Online Inc. 540. 8
S hutterf ly , Inc. 372.8
NetDragon WebS of t, Inc. 343.1
G igaMedia Ltd. 326. 0
S K Communications Co. , Ltd. 321.2
G ungHo Online Entertainment, 286. 8
The9 Limited 285.1
G amania Digital Entertainment 267.7
NEOWIZ G ames Corporation 263. 9
XING A G 221. 3
Openw ave S y s tems Inc. 200. 8
CDC Corp. 164. 4
A ctoz S of t Co. , Ltd. 160. 4
DA DA S pA 143. 5
OA O R B C Inf ormation S y s tems 124.8
G ameOn Co Ltd. 108.3
Tree.Com, Inc. 104. 2
Y edangOnline Corp. 103. 0
My riad G roup A G 98.0
Cy berplex Inc. 92. 3
K A B Dis tribution Inc. 76. 2
HanbitS of t, Inc. 75. 8
J umpTV Inc. 72.7
TheS treet. c om, Inc . 66. 1
DigitalTow n, Inc. 55.5
S park Netw orks , Inc. 50. 8
G eoS entric Oy j 50. 5
Ngi G roup Inc. 46.3
Eolith Co. Ltd. 44.7
Webz en Inc. 41. 0
A Q Interactive, Inc. 40. 4
Fluid Mus ic Canada, Inc. 35. 8
NeXplore Corporation 34.0
Frogs ter Interactive Pictures 32.7
Northgate Technologies Limited 30.5
G ravity Co., Ltd 30.3
S oc ialw is e, Inc . 29.5
B ey ond Commerce, Inc. 29.3
Y nk K orea Inc. 28. 4
DXN Holdings B hd 25. 1
Wiz z ard S of tw are Corporation 24. 4
Dolphin Digital Media, Inc. 24. 3
B roadWebA s ia Inc. 19.5
LookS mart, Ltd. 19.5
J umbuck Entertainment Pty Ltd. 15. 5
IA S Energy , Inc. 14. 0
UOMO Media, Inc 12. 9
Lingo Media Corporation 12. 2
A cceleriz e New Media, Inc. 11. 1
S pectrumDNA , Inc. 9. 7
V OIS , Inc. 8. 7
Quepas a Corp. 8. 6
Worlds .com Inc. 6. 3
Magnitude Inf ormation S y s tems 5. 5
MOK O.mobi Limited 5. 2
S NA P Interactive, Inc. 4. 9
B right Things plc 4. 5
Ex tens ions , Inc. 4. 4
CornerWorld Corporation 3. 9
is eemedia Inc. 3. 5
B etaw ave Corporation 2. 9
DigitalPos t Interactive, Inc. 2. 6
LiveWorld Inc. 1. 9
B igs tring Corp. 1. 7
Unis erve Communications Corp. 1. 7
A s s oc iated Media Holdings Inc. 0. 9
Wy nds torm Corporation 0. 7
The Parent Company 0. 4
ZipLocal Inc. 0. 3
China G atew ay Corporation 0. 3
Financial Media G roup, Inc. 0. 2
Total S port Online A S 0. 1
S NM G lobal Holdings 0. 0
Dibz International, Inc. 0. 0
S ocial Media V enures , Inc. 0. 0
0 500 1, 000 1,500 2,000 2,500 3, 000 3, 500 4, 000
Page 14
Figure 16. Market Cap Ranking

Source. Capital IQ
TEV/Revenue (LTM) averages 5.3x: The overall average TEV/Revenue (LTM) multiple for our group is 5.3x (up from 4.5x
last week) (Figure 17). However, this is skewed by Gree (3633-TSE) at 48.6x, Bigstring Corp (BSGC:OTCBB) at 41.6x and
Dolphin Digital (OTCBB:DPDM) at 36.7x. The median is only 1.1x. Note that we exclude multiples greater than 50x. Thirty-
two companies have multiples under 1.5x
T E V/L T M R evenue (x)
60.0
48.6
50.0
41.6
40.0
32. 7
30.0
20.8
19.20.0
18.0 2
20.0 16.1
12.6
9.69. 9
10.0 7.8
A verage, 5.3
4.64.64. 74.85.65.85.86. 6
3.94. 1
2.73. 23.23.53.5
1. 31.31.41.41.41. 51.51.81. 81.92.12.32.42. 52.6
0.10.20.20. 20.20.30. 30.40.40.50.50. 50.60.60. 70.80.91.01.01. 11.11.1
0.0
NE O WIZ G ames C orporation
UO MO Media, Inc
J umbuc k E ntertainment P ty L td.
G amania Digital E ntertainment C o.,
G ungHo O nline E ntertainment, Inc .
MO K O .mobi Limited
C hines e G amer International

Unis erve C ommunications C orp.
S handa Interactive E ntertainment
Northgate T ec hnologies Limited
T ree.C om, Inc .

C DC C orp.
DXN Holdings B hd
G ameO n C o L td.
S K C ommunic ations C o. , L td.
B ey ond C ommerc e, Inc .

F luid Mus ic C anada, Inc .
DigitalP os t Interac tive, Inc .
C hangy ou.c om Limited
Dolphin Digital Media, Inc .

T he P arent C ompany
Modern T imes G roup Mtg AB
G eoS entric O y j
S NM G lobal Holdings
U nited O nline Inc .
S NAP Interac tive, Inc .
O pen T ex t C orp.
J umpT V Inc .
C ornerWorld C orporation
L ingo Media C orporation

AQ Interac tive, Inc.
IAC /InterActiveC orp.
S park Network s , Inc.
C y berplex Inc.
G igaMedia L td.
V alueC lick Inc.

is eemedia Inc.
NetDragon WebS oft, Inc.
XING AG
E olith C o. L td.
S ohu. com Inc.
Mix i, Inc.
T enc ent Holdings L td.
G ree, Inc.
F rogs ter Interactive P ic tures AG
As s oc iated Media Holdings Inc.

LiveWorld Inc.
P erfec t World C o., Ltd.
B right T hings plc

O penwave S y s tems Inc.
ZipL oc al Inc.
HanbitS oft, Inc.

K AB Dis tribution Inc.
Y edangO nline C orp.
Y nk K orea Inc.
My riad G roup AG
B igs tring C orp.

T otal S port O nline AS
S hutterfly , Inc.
Ac c eleriz e New Media, Inc.
K ings oft C o. Ltd.

DADA S pA
Wiz z ard S oftware C orporation

Ac toz S oft C o., Ltd.
Figure 17. TEV/Revenue Ranking

Source. Capital IQ
TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed
or domiciled. Figure 18 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (17), trading at an average multiple of 14.3x (down from 14.7x last week). On a geographic basis,
the United States has the most companies (38), trading at an average of 5.7x revenue (vs. 5.7x last week) (Figure 19).
Ten of the companies are Canadian (average 4.9x revenue).
Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

18.0 16.1
18.0 16.1
16.0
16.0
14.3 14.0
14.0
12.0
12.0 11.2 9.7
10.0
(x)
10.0 10.0 7.8

(x)
8.0 7.1 6.4

8.0 9.4 7.8 6.2 5.7
6.0 4.9
6.0 6.4 4.0 4.6
4.6 3.83.4 2.7 2.1 1.9 1.4
4.0 2.9 2.8 2.7 2.4 2.1 1.9 1.4 2.0
2.0 0.8 0.5
2.0 0.8 0.5 0.0 0.5 0.3 0.0
0.0 0.3 0.2 0.0
Germany
United
Japan
Finland
China
United
Canada
Malaysia
Hong Kong
India
Russia
Italy
South
Taiwan
Australia
Norway
Switzerland
Sweden
OTCNO
OTCPK
OTCBB
GTSM
NasdaqGM
TSE
SEHK
HLSE
OSE
NasdaqGS
KOSE
RTS
OM
CM
XTRA
TSX
AMEX
KLSE
BSE
AIM
TSXV
SWX
ASX
# Companies 1 6 1 3 2 10 38 10 1 1 2 9 1 1 1 1 1 1
# Companies 1 17 5 2 3 1 2 1 4 12 4 2 1 1 2 14 7 1 1 1 1 5 1
Figures 18 & 19. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ
Page 15
TEV/EBITDA (LTM) averages 9.9x: The average multiple for the 36 companies with positive EBITDA (and multiples under
100x) is 9.9x LTM EBITDA (vs. 9.6x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 41.6x multiple (Figure 20).
Seventeen of the companies have EBITDA multiples under 7x. The median multiple is 8.7x (vs. 8.7x last week).
T E V/L T M E B IT DA (x)
45. 0
41. 6
40. 0
35. 0 32. 1
30. 0 27. 5
25. 0 23. 5
20. 0 18. 5
16. 4
14. 3
15. 0 13. 4
12.1 12.2
10.8 11.7
A verage, 9. 9
9.0 9.6 9.8 10. 0 10. 2 10.7
10. 0 8.4
6. 7
4. 9 5. 6 5. 8 5. 9
3. 7 3. 8 4. 4 4. 7
5. 0 2. 0 2. 6 2. 8
0. 3 0. 5 0. 5 0. 8
0. 0
J umbuck E ntertainment P ty L td.
G amania Digital E ntertainment C o. , L td.
G ungHo O nline E ntertainment, Inc.

DXN H oldings B hd
C hangy ou. com Limited

G ameO n C o Ltd.
C DC C orp.
S K C ommunic ations C o. , Ltd.

S handa Interac tive E ntertainment Ltd.
Ngi G roup Inc .
T heS treet. com, Inc .
S NAP Interactive, Inc .
United O nline Inc .
O pen T ex t C orp.
AQ Interac tive, Inc .
S park Network s , Inc .
NetDragon WebS oft, Inc .
V alueC lick Inc .
S ohu. com Inc .
IAC /InterAc tiveC orp.
C y berplex Inc .
Mix i, Inc .
T enc ent H oldings Ltd.

XING AG
P erfect World C o., Ltd.
K AB Dis tribution Inc .
Y nk K orea Inc .
S hutterfly , Inc .

DADA S pA
Ac toz S oft C o., L td.
Figure 20. TEV/EBITDA Ranking

Source. Capital IQ
TEV/EBITDA (LTM) by country/exchange: Figure 21 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (17), trading at an average multiple of 3.7x. On a geographic basis, the
United States has the most companies (38), trading at an average of 6.4x EBITDA (Figure 22). Ten of the companies are
Canadian (average 10.6x EBITDA).
Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

25.0 21.9 25.0
21.9
20.0 20.0
20.6
15.0 15.0 14.5
14.5
(x)
13.4
(x)
12.8
10.0 10.910.2 10.6 10.2
9.0 8.0 10.0 9.0 7.6
6.1 5.6 6.4 5.8
5.0 4.4 3.8 3.7 5.6
2.0 0.8 5.0 3.8
0.2 0.0
0.0 2.0 0.2
0.0 0.0
OTCBB
GTSM
NasdaqGM
SEHK
KOSE
OSE
NasdaqGS
TSE
RTS
OM
CM
TSX
XTRA
AMEX
KLSE
SWX
ASX
Germany
Japan
Hong Kong
Russia
China
Canada
United
Malaysia
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 2 3 7 1 4 2 1 14 5 1 2 1 17 2 5 1 1
# Companies 3 9 10 10 2 1 6 38 1 1 1 2 1 1
Figures 21 & 22. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
P/E (LTM) averages 17.9x: The average multiple for the 29 companies with positive earnings (and multiples under 100x)
is 17.9x LTM EPS (from 17.0x last week), led by Tencent Holdings Ltd.’s (700-SEHK) 52.8x multiple (Figure 23). Ten of
the companies have P/E multiples under 10x. The median is just 14.2x.
Page 16
P /E L T M (x)
60.0
52.8
50.0 47.0
41.0 41.5
40.0
30.1
28.5 29.5
30.0
24.2 24.7
20.4 20.9
20.0 A verage, 17.9 17.9
15.6 16.4
14.2
12.7 12.9
11.2 12.3
9.2
10.0 6.2 7.4
5.5
3.1 4.2
2.0 2.5 2.7
0.0

J umbuck E ntertainment P ty Ltd.
G amania Digital E ntertainment C o., Ltd.

DXN H oldings B hd
C hangy ou.com Limited

G iant Interactive G roup, Inc.
G ameO n C o Ltd.
Neteas e.com Inc.
S handa Interactive E ntertainment Ltd.
S NAP Interactive, Inc.
O pen T ex t C orp.
C y berplex Inc.
NetDragon WebS oft, Inc.
G igaMedia Ltd.
S ohu.com Inc.
S park Network s , Inc.
IAC /InterActiveC orp.
Worlds .com Inc.
Mix i, Inc.
T encent H oldings Ltd.

XING AG
P erfect World C o., Ltd.
DADA S pA
Figure 23. P/E Ranking Actoz S oft C o., Ltd.

Source. Capital IQ
P/E (LTM) by country/exchange: Figure 24 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (17), trading at an average multiple of 24.2x. On a geographic basis, the United States has
the most companies (38), trading at an average of 21.1x earnings (Figure 25). Ten of the companies are Canadian
(average 19.7x EPS).
Average P/E - By Exchange Average P/E - By Country

40.0 35.0
35.0 29.9
35.0 30.0
30.0 25.0
29.9 27.7
25.0 27.7 24.2 21.8
24.2 24.2 20.0 21.1 20.9
(x)
(x)
20.0 21.8 20.9

15.0 19.7
15.0 15.6 12.5
11.5 9.2 10.0
10.0 6.2 5.5 6.2
4.2 5.5
5.0 5.0 4.2
2.0
0.0 0.0 0.0 0.0
OTCBB
GTSM
TSE
SEHK
KOSE
NasdaqGS
CM
OM
XTRA
AMEX
TSX
KLSE
NYSE
SWX
Germany
ASX
Japan
United
Canada
China
Malaysia
Italy
South
Korea
States
Taiwan
Australia
Sweden
Switzerland
# Companies 2 5 3 17 1 7 2 2 14 4 2 1 1 1 1 # Companies 6 3 1 9 38 2 10 10 2 1 1 1
Figures 24 & 25. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 17
C omparable C ompany Analys is > W eb 2 .0

P ric e P erforman c e
C ompa ny Na me C ur rency T ic ker E x change US D Ma rket C ap ($m) C urrent Pric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 We ek
Acce le rize N ew Me dia, Inc. US D A CL Z OT C B B 1 1.1 0.4 0 14.3 % 0.0% 73 .9% 14 .3% -46 .7% -46. 7%
Actoz S of t C o., L td. KR W A 052 790 KO SE 16 0.4 2 4,00 0.0 0 -14. 3% 4.8% 11 9.2% 13 5.3% 2 12. 5% -33. 3%
AQ Inte ractive , Inc. JPY 3 838 TSE 4 0.4 7 1,20 0.0 0 -5.3 % -8.7 % 81 .2% 14 2.2% -46 .1% -59. 3%
As s ocia ted Media H oldings Inc. US D A S MH OT C P K 0 .9 0.0 2 1 233 .3% 12 33. 3% 132 8.6 % 56 6.7% NM -60. 0%
B igstring Corp. US D B S GC OT C B B 1 .7 0.0 3 10.3 % 4 5.5 % 11 3.3% 11 3.3% -77 .1% -84. 0%
B e tawave Corpora tion US D B W AV OT C B B 2 .9 0.1 0 25.0 % 0.0% -4 2.9% -5 4.5 % -70 .6% -75. 0%
B e yond Commerce, Inc. US D B Y OC OT C B B 2 9.3 0.6 5 -20. 7% -26. 1% 14 .0% -2 7.8 % -80 .1% -80. 3%
B right T hings plc GBP A IM:B G T AI M 4 .5 0.0 1 -8.3 % -16. 7% 10 .0% 10 .0% -41 .5% -45. 0%
B roa dW ebAs ia Inc. US D B W BA OT C P K 1 9.5 0.2 3 -22. 8% -22. 8% -5 4.9% -7 7.2 % -84 .7% -92. 1%
C D C C orp. US D C H IN .A N as da qG S 16 4.4 1.5 5 11.5 % -6.1 % 40 .9% 34 .8% -33 .5% -51. 1%
C ha ngyou. com Limite d US D C Y OU N as da qG S 2,3 99. 7 4 3.6 3 23.3 % 3 2.6 % NM NM NM -5.0 %
C hina G ate wa y C orpora tion US D C GW Y OT C P K 0 .3 0.0 2 -25. 0% 6 50.0 % 65 0.0% 65 0.0% -50 .0% -57. 1%
C hine s e G amer International TWD G TS M:3 083 GT S M 1,0 73. 3 42 0.0 0 23.7 % 1 1.6 % 13 4.0% 34 4.4% 3 80. 0% -6.7 %
C ornerW orld C orporation US D CWR L OT C B B 3 .9 0.0 6 -14. 3% -33. 3% -5 7.1% -8 7.2 % -85 .4% -92. 4%
C yberplex Inc. C AD T S X:CX TSX 9 2.3 1.6 5 -0.6 % 1.9% 96 .4% 38 5.3% 1 50. 0% -17. 1%
D AD A S pA E UR C M:DA CM 14 3.5 6.3 0 7.7 % 7.1% 31 .5% -6.9% -46 .6% -51. 6%
D XN Holdings B hd MY R D XN KL SE 2 5.1 0.3 9 1.3 % 1.3% 30 .5% 10 .0% -1. 3% -18. 1%
D ibz Inte rnational, Inc. US D D IB Z OT C P K 0 .0 0.0 0 -90. 0% -90. 0% -9 0.0% -9 8.0 % -98 .0% -98. 0%
D igitalP ost Inte ra ctive , Inc. US D DGL P OT C B B 2 .6 0.0 4 25.0 % 7 5.0 % 75 .0% 11 8.8% -68 .2% -79. 3%
D igitalT own, Inc. US D DGT W OT C B B 5 5.5 2.0 5 -17. 7% 5 7.7 % -1 8.0% -2 4.1 % -40 .6% -66. 4%
D olphin D igital Me dia, Inc. US D DPDM OT C B B 2 4.3 0.4 7 -6.0 % -21. 7% -2 4.8% -4 1.3 % NM -58. 4%
E olith C o. L td. KR W A 041 060 KO SE 4 4.7 79 0.0 0 -3.7 % 6.8% 53 .4% 41 .1% 7.5 % -31. 9%
E xte ns ions , Inc. US D E XT I OT C P K 4 .4 0.1 0 -33. 3% -33. 3% -3 3.3% -4.8% NM -90. 1%
F inancia l Media G roup, Inc. US D F NGP OT C B B 0 .2 0.0 0 -10. 0% -32. 5% -7 0.0% -9 3.3 % -99 .7% -99. 7%
F luid M us ic Ca nada, Inc. C AD T S X:F MN TSX 3 5.8 0.7 9 25.4 % 5.3% 97 .5% 22 9.2% -56 .1% -60. 5%
F rogs te r Interactive P icture s AG E UR FR G XT R A 3 2.7 9.9 0 24.5 % 3 2.0 % 49 .8% 67 .8% 1 03. 3% 3.1 %
G a ma nia D igital E ntertainment C o., L td. TWD 6 180 GT S M 26 7.7 5 8.0 0 7.4 % -1.0 % 74 .2% 16 6.1% 94.6 % -7.5 %
G a me On C o L td. JPY 3 812 TSE 10 8.3 10 7,40 0.0 0 -7.7 % -5.5 % 16 .4% -1 2.4 % -17 .4% -34. 3%
G e oS e ntric O yj E UR G E O1V H LS E 5 0.5 0.0 4 0.0 % -20. 0% 33 .3% 33 .3% -33 .3% -42. 9%
G iant Intera ctive G roup, Inc. US D GA NYS E 1,8 94. 9 8.3 9 4.9 % 1 2.0 % 23 .4% 29 .3% -24 .6% -31. 5%
G iga Media Ltd. US D G IG M N as da qG S 32 6.0 5.9 8 7.4 % -1.2 % 8 .3% 6 .2% -44 .2% -55. 6%
G ravity C o., L td US D G RV Y N as da qG M 3 0.3 1.0 9 -1.8 % -7.6 % 70 .3% 10 5.7% -5. 2% -45. 2%
G ree, Inc. JPY T S E :36 32 TSE 1,5 72. 3 6,75 0.0 0 -5.9 % 1 4.8 % 24 .3% 25 .5% NM -11. 9%
G ungH o O nline E ntertainment, Inc. JPY 3 765 OS E 28 6.8 24 0,10 0.0 0 2.6 % 1 3.8 % 89 .2% 13 8.4% 5.8 % -14. 2%
H anbitS of t, Inc. KR W A 047 080 KO SE 7 5.8 4,43 0.0 0 -3.7 % -12. 6% 37 .2% 30 .3% 50.4 % -33. 3%
IAC /InterActiveC orp. US D I ACI N as da qG S 2,4 01. 1 1 5.9 1 -0.3 % -1.8 % 4 .5% 1 .1% -56 .0% -68. 5%
IAS E nergy, Inc. US D I AS C .A OT C B B 1 4.0 0.2 0 -13. 0% -13. 0% 34 4.4% 56 6.7% 11.7 % -42. 9%
is ee media Inc. C AD IEE T S XV 3 .5 0.0 8 33.3 % -11. 1% -1 1.1% 23 .1% -66 .7% -74. 2%
J umbuck E ntertainment P ty Ltd. AU D A S X:J M B AS X 1 5.5 0.3 9 -7.1 % -13. 3% -2 2.0% 0 .0% -36 .1% -37. 1%
J umpT V Inc. C AD T S X:J T V TSX 7 2.7 0.7 4 15.6 % -8.6 % 19 .4% 76 .2% -7. 5% -42. 2%
K A B D is tribution Inc. C AD T S X:K AB TSX 7 6.2 0.6 3 0.0 % 5.0% 46 .5% 80 .0% -26 .7% -33. 7%
K ings oft Co. Ltd. HKD 3 888 S E HK 79 6.5 5.6 9 9.4 % 1 1.1 % 76 .2% 12 0.5% 51.3 % -4.7 %
Lingo M edia Corporation C AD T S XV :LM T S XV 1 2.2 1.1 0 0.0 % 4.8% 22 .2% -7.6% -39 .9% -43. 0%
Live World Inc. US D L VW D OT C P K 1 .9 0.0 6 -40. 0% -25. 0% -5 3.8% 10 0.0% -78 .6% -81. 3%
LookS mart, Ltd. US D L OOK N as da qG M 1 9.5 1.1 4 -13. 6% -11. 6% 11 .8% -2 5.9 % -72 .0% -72. 9%
M agnitude Information S ys tems Inc. US D M AG Y OT C B B 5 .5 0.0 1 0.0 % 2 0.0 % -2 0.0% -2 0.0 % -53 .1% -60. 0%
M ixi, Inc. JPY 2 121 TSE 94 4.4 58 9,00 0.0 0 12.6 % 2 9.7 % 58 .8% 7 .7% -14 .9% -36. 0%
M ode rn Times G roup Mtg AB SE K MT G B OM 1,8 50. 0 21 7.0 0 13.3 % -2.3 % 54 .7% 28 .8% -35 .2% -44. 4%
M OK O.mobi L imited AU D MKB AS X 5 .2 0.0 8 15.4 % 7.1% 50 .0% 25 .0% 50.0 % -25. 0%
M yriad G roup AG C HF MYR N SWX 9 8.0 4.9 9 -0.2 % -8.4 % 24 .8% -1 3.2 % -50 .1% -51. 3%
N E OW IZ G ames C orpora tion KR W A 095 660 KO SE 26 3.9 3 2,10 0.0 0 -6.3 % -13. 4% 39 .6% 22 3.4% 1 67. 5% -23. 6%
N etD ragon W ebS oft, Inc. HKD 7 77 S E HK 34 3.1 5.0 3 -2.5 % -6.0 % 22 .1% 73 .4% -48 .7% -52. 5%
N ete as e.com I nc. US D NT E S N as da qG S 4,5 40. 6 3 6.9 0 9.2 % 6.7% 37 .4% 67 .0% 73.5 % -4.7 %
N eXplore Corpora tion US D N XP C OT C P K 3 4.0 0.6 1 -12. 9% -12. 9% 1 .7% -3 9.0 % -23 .8% -57. 9%
N gi G roup Inc. JPY 2 497 TSE 4 6.3 3 5,90 0.0 0 -2.6 % 5.1% 68 .5% -2 9.6 % -66 .1% -71. 8%
N orthgate Te chnologies L imited IN R 5 900 57 BS E 3 0.5 4 2.0 5 12.7 % -6.2 % 23 .7% -3 4.0 % -86 .0% -88. 8%
Open T e xt Corp. US D O TE X N as da qG S 1,9 31. 3 3 6.7 0 4.9 % 4.2% 6 .6% 21 .8% 19.5 % -6.1 %
Openwave S ys tems Inc. US D O PW V N as da qG S 20 0.8 2.4 1 18.7 % 3 6.9 % 14 8.5% 27 0.8% 97.5 % -2.4 %
P e rf ect W orld C o., Ltd. US D P W RD N as da qG S 1,4 85. 8 3 0.5 5 5.6 % 4 4.2 % 11 7.4% 77 .1% 16.3 % -9.9 %
Quepa s a C orp. US D Q PS A OT C P K 8 .6 0.6 8 0.0 % -33. 3% -3 4.6% -5 9.3 % -69 .8% -80. 3%
OA O R B C Information S ys tems US D R BC I R TS 12 4.8 0.9 0 -10. 0% -28. 0% 10 4.5% 80 .0% -90 .0% -90. 1%
S handa Interactive E ntertainme nt L td. US D S ND A N as da qG S 3,9 68. 7 5 7.2 0 10.4 % -0.7 % 44 .7% 76 .8% 1 30. 0% -12. 0%
S hutte rf ly, Inc. US D S F LY N as da qG S 37 2.8 1 4.8 1 13.6 % 3.6% 58 .1% 11 1.9% 28.0 % -2.9 %
S K C ommunications Co., Ltd. KR W A 066 270 KO SE 32 1.2 9,81 0.0 0 -15. 8% -15. 1% 30 .6% 80 .0% -25 .7% -44. 1%
S N AP Inte ra ctive , Inc. US D S T VI OT C B B 4 .9 0.4 5 -30. 8% -43. 0% -4 0.0% -3 5.7 % -34 .8% -58. 3%
S N M G lobal H oldings US D S NMN OT C P K 0 .0 0.0 1 3 66. 7% 1 80.0 % 60 0.0% -3 0.0 % -99 .5% -99. 6%
S ocia l Media V e nures , Inc. US D S MV I OT C P K 0 .0 0.0 1 0.0 % 0.0% -9 9.2% -9 9.1 % NM -99. 8%
S ocia lwis e, Inc. US D S CL W OT C B B 2 9.5 0.6 8 -2.9 % -2.9 % 70 .0% -1 9.0 % -66 .8% -76. 0%
S ohu. com Inc. US D S OH U N as da qG S 2,5 20. 4 6 5.8 7 7.6 % 4.5% 59 .5% 39 .1% -10 .3% -25. 1%
S park N etworks , Inc. US D L OV AME X 5 0.8 2.4 7 3.8 % 7.9% 9 .8% -3.9% -39 .9% -44. 6%
S pectrumDN A, Inc. US D S P XA OT C B B 9 .7 0.2 0 -13. 0% -45. 9% 5 .3% 33 .3% NM -66. 7%
T encent Holdings L td. HKD 7 00 S E HK 22, 011 .2 9 4.5 5 6.4 % 9.4% 64 .7% 89 .1% 57.6 % -1.3 %
T he P arent C ompany US D K IDS .Q OT C P K 0 .4 0.0 2 -40. 0% 0.0% -2 5.0% -7 0.0 % -99 .0% -99. 5%
T he 9 L imited US D NC T Y N as da qG S 28 5.1 1 0.6 3 0.9 % 1 6.3 % -2 1.2% -2 0.2 % -54 .7% -62. 7%
T he S treet.com, Inc. US D T S CM N as da qG M 6 6.1 2.1 6 -2.3 % 1 1.9 % 5 .9% -2 5.5 % -66 .5% -70. 6%
T otal S port Online A S N OK T OS O OT C N O 0 .1 0.0 3 0.0 % 0.0% -2 5.0% -4 0.0 % -70 .0% -70. 0%
T ree.C om, Inc. US D TR EE N as da qG M 10 4.2 9.6 5 7.6 % -17. 0% 11 2.1% 34 8.8% NM -26. 2%
U nis erve C ommunications Corp. C AD T S XV :U S S T S XV 1 .7 0.0 8 14.3 % 6 0.0 % 10 0.0% 10 0.0% -70 .4% -73. 3%
U nited Online Inc. US D UNT D N as da qG S 54 0.8 6.4 7 7.7 % 1.1% 45 .1% 6 .6% -35 .4% -47. 2%
U OMO Media , Inc US D U OM O OT C B B 1 2.9 0.1 5 -4.5 % -28. 2% 87 .5% 15 0.0% -58 .3% -85. 8%
V a lueC lick Inc. US D V CL K N as da qG S 99 3.2 1 1.4 2 8.1 % 3.3% 34 .2% 67 .0% -23 .9% -27. 5%
V O IS , Inc. US D V OIS OT C B B 8 .7 1.0 5 2 00. 0% 2 00.0 % 35 6.5% 16 2.5% -78 .1% -81. 3%
W ebze n Inc. US D W ZE N N as da qG M 4 1.0 3.4 6 -7.5 % -25. 9% 87 .0% 28 8.8% 14.9 % -26. 1%
W izza rd S of twa re Corpora tion US D W ZE AME X 2 4.4 0.5 1 -20. 3% -5.6 % 8 .5% -4 0.7 % -67 .9% -74. 5%
W orlds .com Inc. US D W DDD OT C B B 6 .3 0.1 2 20.0 % -20. 0% -3 3.3% -3 6.8 % -70 .0% -70. 0%
W ynds torm C orporation US D W YND OT C P K 0 .7 0.0 4 14.3 % -92. 2% -6 6.7% -6 6.7 % -88 .6% -93. 3%
XIN G AG E UR O 1B C XT R A 22 1.3 2 9.8 8 -0.4 % -10. 8% 3 .4% 10 .7% -6. 7% -17. 0%
Y e dangOnline Corp. KR W A 052 770 KO SE 10 3.0 8,40 0.0 0 -4.7 % -17. 2% 0 .5% 36 .4% -28 .5% -32. 3%
Y nk K orea Inc. KR W A 023 770 KO SE 2 8.4 6,80 0.0 0 7.1 % -8.1 % 82 .8% 51 .1% -43 .3% -51. 6%
ZipLocal Inc. C AD T S XV :ZIP T S XV 0 .3 0.0 1 0.0 % 0.0% -6 6.7% 0 .0% -95 .5% -95. 7%
H igh 1 233 .3% 12 33. 3% 132 8.6 % 65 0.0% 3 80. 0% 3.1 %

Low -90. 0% -92. 2% -9 9.2% -9 9.1 % -99 .7% -99. 8%
A vera ge 622.7 19.4% 22.4% 63.1% 63.5% -19.3% -50.8%
M edian 0.0 % -0.4 % 31 .5% 25 .5% -40 .2% -51. 5%
Figure 26. Price Performance

Source. Capital IQ
Page 18

V aluatio n Multiples
P rimary US D Market TE V/LT M TE V/ N TM TE V/LT M TE V/N TM
C om pany Nam e S ec to r Co untry E xc h ange Tic ker Cap ($m) R evenue R evenue E BITDA E BITDA P /LT M E P S P /NT M E PS P /TangBV
Acce le rize N ew Me dia, Inc. D irect Marketing U nite d S tates OT C B B AC LZ 11. 1 3.9 x - - - - - -
Actoz S of t C o., L td. G aming S outh K ore a K OS E A 052 790 1 60. 4 1.5 x - 6.7 x - 24 .7x - 2 .8x
AQ Inte ractive , Inc. G aming J a pan TSE 3 838 40. 4 0.2 x - 2.8 x - - - 0 .6x
As s ocia ted Media H oldings Inc. Mobile U nite d S tates OT C P K AS MH 0. 9 19.2 x - - - - - -
B igstring Corp. Ins ta nt M es s aging U nite d S tates OT C B B BS G C 1. 7 41.6 x - - - - - -
B e tawave Corpora tion Me dia U nite d S tates OT C B B B WA V 2. 9 - - - - - - 0 .4x
B e yond Commerce, Inc. S ocia l Ne tworking U nite d S tates OT C B B BYO C 29. 3 4.8 x - - - - - -
B right T hings plc S ocia l Ne tworking U nite d K ingdom AIM AIM :B G T 4. 5 16.1 x - - - - - -
B roa dW ebAs ia Inc. S ocia l Ne tworking U nite d S tates OT C P K B WB A 19. 5 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN .A 1 64. 4 0.5 x 0.5x 5.8 x 6.2x - 1 1.2 x -
C ha ngyou. com Limite d G aming C hina N as da qG S CY OU 2,3 99. 7 9.9 x 7.7x 16.4 x - 16 .4x 1 5.7 x 1 4.9x
C hina G ate wa y C orpora tion Mobile U nite d S tates OT C P K CG W Y 0. 3 0.0 x - - - - - -
C hine s e G amer International G aming T a iwan GTSM G T S M:308 3 1,0 73. 3 18.0 x - 32.1 x - 41 .5x - 1 5.6x
C ornerW orld C orporation C ontent U nite d S tates OT C B B CWR L 3. 9 4.1 x - - - - - -
C yberplex Inc. Advertis ing C anada TSX T S X:C X 92. 3 1.3 x 0.9x 12.2 x 8.0x 9. 2x 1 0.8 x 9 .2x
D AD A S pA S ocia l Ne tworking Italy CM CM:DA 1 43. 5 0.8 x - 5.6 x - 24 .2x - -
D XN Holdings B hd S ocia l Ne tworking Malays ia KLSE D XN 25. 1 0.5 x - 3.8 x - 4. 2x - 0 .5x
D ibz Inte rnational, Inc. S N S A pps U nite d S tates OT C P K D IB Z 0. 0 - - - - - - -
D igitalP ost Inte ra ctive , Inc. C ontent U nite d S tates OT C B B DGL P 2. 6 5.8 x - - - - - -
D igitalT own, Inc. S ocia l Ne tworking U nite d S tates OT C B B D G TW 55. 5 - - - - - - -
D olphin D igital Me dia, Inc. S ocia l Ne tworking U nite d S tates OT C B B DP DM 24. 3 32.7 x - - - - - -
E olith C o. L td. G aming S outh K ore a K OS E A 041 060 44. 7 3.2 x - - - - - 4 .3x
E xte ns ions , Inc. C ontent U nite d S tates OT C P K E XT I 4. 4 - - - - - - -
F inancia l Media G roup, Inc. D irect Marketing U nite d S tates OT C B B F NGP 0. 2 - - - - - - -
F luid Mus ic Ca nada, Inc. Me dia U nite d S tates TSX T S X:F MN 35. 8 5.6 x 4.7x - - - - 3 .6x
F rogs te r Interactive P icture s AG G aming G ermany XT R A FRG 32. 7 9.6 x - - - - - 4 .9x
G a ma nia D igital E ntertainment C o., L td. G aming T a iwan GTSM 6 180 2 67. 7 1.9 x - 11.7 x - 28 .5x - 3 .5x
G a me On C o L td. G aming J a pan TSE 3 812 1 08. 3 0.6 x - 2.6 x - 12 .7x - 1 .4x
G e oS e ntric O yj Mobile F inland H LS E G E O1V 50. 5 7.8 x - - - - - 8 .6x
G iant Intera ctive G roup, Inc. G aming C hina NYS E GA 1,8 94. 9 - - - - 2. 0x 1 3.9 x 0 .4x
G iga Media Ltd. G aming T a iwan N as da qG S G IG M 3 26. 0 1.4 x 1.3x - 6.4x 12 .9x 1 2.0 x 2 .8x
G ravity C o., L td G aming S outh K ore a N as da qG M GR VY 30. 3 - - - - - - -
G ree, Inc. S ocia l Ne tworking J a pan TSE T S E :3 632 1,5 72. 3 48.6 x - - - - - 1 9.6x
G ungH o O nline E ntertainment, Inc. Me dia J a pan OS E 3 765 2 86. 8 2.4 x - 13.4 x - - - 4 0.8x
H anbitS of t, Inc. G aming S outh K ore a K OS E A 047 080 75. 8 1.1 x - - - - - 2 .3x
IAC /InterActiveC orp. Me dia U nite d S tates N as da qG S IAC I 2,4 01. 1 0.4 x 0.4x 12.1 x 3.3x 20 .4x 3 1.4 x 1 .1x
IAS E nergy, Inc. V ide o C anada OT C B B IA S C .A 14. 0 - - - - - - -
is ee media Inc. C ontent C anada T S XV IE E 3. 5 1.8 x - - - - - 3 .1x
J umbuck E ntertainment P ty Ltd. S ocia l Ne tworking A us tralia AS X AS X:J MB 15. 5 0.7 x - 2.0 x - 6. 2x - 1 .6x
J umpT V Inc. V ide o C anada TSX T S X:J T V 72. 7 3.5 x - - - - - 4 .4x
K A B D is tribu tion Inc. C ontent C anada TSX TS X:K AB 76. 2 1.1 x 1.1x 9.6 x 5.9x - - -
K ings oft Co. Ltd. G aming C hina S EHK 3 888 7 96. 5 5.8 x - 14.3 x - 17 .9x - 4 .3x
Lingo M edia Corporation Le arning C anada T S XV TS XV :LM 12. 2 12.6 x - - - - - 1 2.8x
Live World Inc. S ocia l Ne tworking U nite d S tates OT C P K LV W D 1. 9 0.1 x - - - - - 0 .8x
LookS mart, Ltd. D irect Marketing U nite d S tates N as da qG M L OOK 19. 5 - - - - - - 0 .7x
Magnitu de Information S ys tems Inc. S ocia l Ne tworking U nite d S tates OT C B B MAG Y 5. 5 - - - - - - -
Mixi, Inc. S ocia l Ne tworking J a pan TSE 2 121 9 44. 4 6.6 x - 18.5 x - 47 .0x - 7 .0x
Mode rn Times G rou p Mtg AB Me dia S we den OM MT G B 1,8 50. 0 1.4 x 1.3x 9.0 x 1 0.9 x 5. 5x 1 1.6 x -
MOK O.mobi L imited S ocia l Ne tworking A us tralia AS X MK B 5. 2 3.5 x - - - - - 3 .9x
Myriad G roup AG Mobile S witz erland SWX MY R N 98. 0 2.7 x - - - - - 4 .4x
N E OW IZ G ames C orpora tion G aming S outh K ore a K OS E A 095 660 2 63. 9 1.3 x - 4.9 x - 29 .5x - 1 4.9x
N etD ragon W ebS oft, Inc. G aming C hina S EHK 777 3 43. 1 2.3 x - 5.9 x - 12 .3x - 1 .9x
N ete as e.com I nc. G aming C hina N as da qG S NT E S 4,5 40. 6 - - - - 2. 7x 1 6.7 x 0 .8x
N eXplore Corpora tion C ontent U nite d S tates OT C P K N XP C 34. 0 - - - - - - -
N gi G roup Inc. Me dia J a pan TSE 2 497 46. 3 0.1 x - 0.5 x - - - 1 .0x
N orthgate Te chnologies L imited D irect Marketing India BSE 59 005 7 30. 5 0.3 x - - - - - -
Open T e xt Corp. C ollaboration C anada N as da qG S O TE X 1,9 31. 3 2.6 x 2.4x 10.0 x 8.7x 30 .1x 1 4.0 x -
Openwave S ys tems Inc. Mobile U nite d S tates N as da qG S OP W V 2 00. 8 0.5 x 0.5x - 5.7x - 3 8.3 x 2 .9x
P e rf ect W orld C o., Ltd. G aming C hina N as da qG S PW R D 1,4 85. 8 0.3 x 1.3x 0.5 x 2.6x 2. 5x 1 1.5 x 1 .0x
Quepa s a C orp. S ocia l Ne tworking U nite d S tates OT C P K QP S A 8. 6 - - - - - - -
OA O R B C Information S ys tems Me dia R us s ia R TS R B CI 1 24. 8 0.0 x - 0.2 x - - - -
S handa Interactive E ntertainme nt L td. G aming C hina N as da qG S S NDA 3,9 68. 7 0.2 x 0.8x 0.3 x 1.9x 3. 1x 1 6.0 x 1 .2x
S hutte rf ly, Inc. D igital Imaging U nite d S tates N as da qG S S FL Y 3 72. 8 1.4 x - 10.8 x 8.3x - - 2 .2x
S K C ommunications Co., Ltd. S e arch S outh K ore a K OS E A 066 270 3 21. 2 1.8 x - 27.5 x - - - -
S N AP Inte ra ctive , Inc. D ating U nite d S tates OT C B B S T VI 4. 9 1.0 x - 3.7 x - 7. 4x - 2 .9x
S N M G lobal H oldings Me dia U nite d S tates OT C P K S N MN 0. 0 1.1 x - - - - - -
S ocia l Media V e nures , Inc. S ocia l Ne tworking U nite d S tates OT C P K S MV I 0. 0 0.0 x - - - - - -
S ocia lwis e, Inc. S ocia l Ne tworking U nite d S tates OT C B B S CL W 29. 5 - - - - - - 3 8.3x
S ohu. com Inc. G aming C hina N as da qG S S OH U 2,5 20. 4 4.7 x 4.1x 10.7 x 9.3x 14 .2x 1 8.1 x 6 .8x
S park N etworks , Inc. S ocia l Ne tworking U nite d S tates AME X L OV 50. 8 0.9 x - 4.4 x - 15 .6x - -
S pectrumDN A, Inc. Me dia U nite d S tates OT C B B S P XA 9. 7 - - - - - - 2 5.5x
T encent Holdings L td. P orta l C hina S EHK 700 22,0 11. 2 20.0 x - 41.6 x - 52 .8x - 2 2.1x
T he P arent C ompany Me dia U nite d S tates OT C P K K ID S .Q 0. 4 0.2 x - - - - - -
T he 9 L imited G aming C hina N as da qG S NC T Y 2 85. 1 - - - - 0. 8x 1 4.6 x 0 .1x
T he S treet.com, Inc. Me dia U nite d S tates N as da qG M TSCM 66. 1 0.0 x 0.0x 0.8 x - - - 0 .9x
T otal S port Online A S Me dia N orway OT C NO T OS O 0. 1 4.6 x - - - - - -
T ree.C om, Inc. P orta l U nite d S tates N as da qG M TR E E 1 04. 2 0.4 x 0.4x - 5.0x - - 1 .4x
U nis erve C ommu nications Corp. S ocia l Ne tworking C anada T S XV T S XV :U S S 1. 7 0.2 x - - - - - -
U nited Online Inc. Me dia U nite d S tates N as da qG S U N TD 5 40. 8 1.0 x 0.8x 4.7 x 3.4x - 1 7.8 x -
U OMO Media , Inc Me dia C anada OT C B B U OMO 12. 9 20.8 x - - - - - -
V a lueC lick Inc. Me dia U nite d S tates N as da qG S V C LK 9 93. 2 1.5 x 1.6x 8.4 x 6.5x - 1 8.1 x 8 .1x
V O IS , Inc. S ocia l Ne tworking U nite d S tates OT C B B V OIS 8. 7 - - - - - - 3 0.4x
W ebze n Inc. G aming S outh K ore a N as da qG M W ZE N 41. 0 - - - - - - 0 .0x
W izza rd S of twa re Corpora tion P odcas ting U nite d S tates AME X W ZE 24. 4 4.6 x - - - - - -
W orlds .com Inc. C ontent U nite d S tates OT C B B W DD D 6. 3 - - - - 41 .0x - -
W ynds torm C orporation C ontent U nite d S tates OT C P K W YND 0. 7 - - - - - - -
XIN G AG S ocia l Ne tworking G ermany XT R A O 1B C 2 21. 3 3.2 x - 10.2 x - 20 .9x - 7 .0x
Y e dangOnline Corp. G aming S outh K ore a K OS E A 052 770 1 03. 0 2.1 x - 9.8 x - 11 .2x - 3 .9x
Y nk K orea Inc. G aming S outh K ore a K OS E A 023 770 28. 4 2.5 x - 23.5 x - - - 1 .5x
ZipLocal Inc. D irectory C anada T S XV T S XV :ZIP 0. 3 0.6 x - - - - - -
H igh 22,0 11. 2 48.6 x 7.7x 41.6 x 1 0.9 x 52 .8x 3 8.3 x 4 0.8x
Low 0. 0 0.0 x 0.0x 0.2 x 1.9x 0. 8x 1 0.8 x 0 .0x
A vera ge 622. 7 5.3x 1.8x 9.9x 6.1x 17.9x 17.0x 7.0x
Median 40. 7 1.8 x 1.1x 8.7 x 6.2x 14 .2x 1 5.1 x 3 .1x
Figure 27. Valuation Comparison

Source. Capital IQ
Page 19

Su mmary b y C ountry
C om pany Nam e U S D Market Cap ($m) Avg US D Market C ap ($m) U S D LT M T otal R ev ($m) U S D LT M To tal E B IT DA ($m) E B IT DA %
U nited S ta tes 38 C hina 40, 246.0 China 4,024. 6 C hina 3, 839. 0 C hina 1,773. 8 C hina 47. 9%
C a na da 10 U nited S ta tes 5, 076.1 S weden 1,850. 0 U nited S ta tes 3, 795. 5 S weden 266. 8 Aus tra l ia 37. 2%
C hina 10 J a pa n 2, 998.5 Ta iwa n 555. 7 S weden 1, 741. 6 U nited S ta tes 245. 7 T a iwa n 36. 3%
S outh K orea 9 C a na da 2, 217.2 Ja pa n 499. 7 C a na da 970. 3 C a na da 193. 6 G erma ny 31. 2%
J a pa n 6 S weden 1, 850.0 Ca na da 221. 7 S outh K orea 657. 1 J a pa n 108. 2 J apa n 21. 9%
T a iwan 3 T a iwa n 1, 667.0 Hong K ong 164. 4 J a pa n 497. 1 S outh K orea 85. 0 S weden 15. 3%
A ustra lia 2 S outh K orea 1, 068.7 Ita ly 143. 5 H ong K ong 389. 9 T a iwa n 52. 4 I taly 14. 6%
G erma ny 2 G erma ny 254.0 United S ta tes 133. 6 T a iwa n 365. 6 I ta ly 34. 5 M a la ys ia 13. 7%
S witz erla nd 1 H ong K ong 164.4 G erma ny 127. 0 I ta ly 236. 1 H ong K ong 30. 8 R uss ia 13. 1%
H ong K ong 1 I ta ly 143.5 R us sia 124. 8 R uss ia 151. 8 R uss ia 19. 8 H ong K ong 7.9%
F inla nd 1 R uss ia 124.8 S outh K orea 118. 7 I ndia 116. 5 M a la ys ia 10. 7 S outh K orea 6.0%
I ta ly 1 S witz erla nd 98.0 S witzerla nd 98. 0 M a la ys ia 78. 1 G ermany 10. 5 S witz erla nd 1.9%
U nited K ingdom 1 F inla nd 50.5 Finla nd 50. 5 G erma ny 56. 4 Aus tra lia 3. 0 U nited S ta tes -10.1%
I ndia 1 I ndia 30.5 India 30. 5 S witz erla nd 40. 0 S witz erla nd 0. 8 I ndia -23.5%
S weden 1 M a la ys ia 25.1 Ma la y sia 25. 1 Aus tra l ia 15. 6 N orwa y -1. 1 C a na da -24.8%
R us sia 1 Aus tra lia 20.8 Austra lia 10. 4 F inla nd 5. 9 U nited K ingdom -1. 9 N orwa y -50.6%
M a la ys ia 1 U nited K ingdom 4.5 United K ingdom 4. 5 N orwa y 2. 1 F inla nd -15. 4 U nited K ingdom #DI V /0!
N orwa y 1 N orwa y 0.1 Norwa y 0. 1 U nited K ingdom 0. 3 I ndia -27. 3 F inla nd #DI V /0!
G rand To tal 90 G rand T otal 56,039.7 G rand To tal 622. 7 G rand T otal 12,959. 0 G rand T otal 2,789. 8 G rand T otal 6.7%
Figure 28. Comparison by Country

Source. Capital IQ

Su mmary b y Ex c hange
C om pany Nam e U S D Market Cap ($m) Avg US D Market C ap ($m) U S D LT M T otal R ev ($m) U S D LT M To tal E B IT DA ($m) E B IT DA %
OT C B B 17 S E HK 23, 150.8 S E HK 7,716. 9 OM 1, 741. 6 N a sda qG S 1,692. 6 S E HK 42. 6%

N a s da qG S 14 N a sda qG S 22, 130.6 NY S E 1,894. 9 N a sda qG S 484. 2 S E HK 662. 9 AS X 37. 2%
OT C P K 12 TSE 2, 711.6 OM 1,850. 0 S E HK 473. 1 OM 266. 8 GTS M 36. 3%
K OS E 7 NYS E 1, 894.9 Na s da qG S 1,580. 8 CM 236. 1 TSE 88. 9 XT R A 31. 2%
TSE 5 OM 1, 850.0 G TS M 670. 5 NYS E 218. 9 K OS E 78. 1 N a sda qG S 30. 1%
N a s da qG M 5 GT SM 1, 341.0 TS E 542. 3 R TS 151. 8 GT SM 52. 4 TSE 22. 7%
TSX 4 K OS E 997.4 OS E 286. 8 BSE 116. 5 CM 34. 5 OS E 18. 0%
T S XV 4 OS E 286.8 CM 143. 5 OS E 107. 5 R TS 19. 8 OM 15. 3%
S E HK 3 TSX 277.0 K OS E 142. 5 GTSM 91. 0 OS E 19. 3 CM 14. 6%
A ME X 2 N a sda qG M 261.1 XT R A 127. 0 K OS E 85. 2 K LS E 10. 7 K LS E 13. 7%
ASX 2 XT R A 254.0 RT S 124. 8 N a sda qG M 80. 8 X TR A 10. 5 R TS 13. 1%
XT R A 2 O T CB B 222.9 SWX 98. 0 K LS E 78. 1 AM E X 6. 4 K OS E 5.2%
GT S M 2 CM 143.5 TS X 69. 3 TSE 77. 9 AS X 3. 0 SWX 1.9%
S WX 1 R TS 124.8 Na s da qG M 52. 2 TSX 41. 1 SWX 0. 8 N a sda qG M 1.6%
H LS E 1 SWX 98.0 HL S E 50. 5 SWX 40. 0 NYS E 0. 0 OT CB B -5. 3%
CM 1 AM E X 75.2 AME X 37. 6 AM E X 29. 9 O T CN O -1. 1 TSX -14.3%
B SE 1 O T CP K 70.7 BS E 30. 5 XT RA 28. 2 AI M -1. 9 BS E -23.5%
NYS E 1 H LS E 50.5 K LS E 25. 1 OT CP K 16. 5 TSX -2. 9 AM E X -36.4%
OS E 1 BSE 30.5 O TC B B 13. 1 AS X 7. 8 N a sda qG M -8. 2 T S XV -39.0%
A IM 1 K LS E 25.1 AS X 10. 4 T S XV 6. 9 T S XV -8. 3 OT CP K -41.3%
OM 1 AS X 20.8 O TC P K 5. 9 H LS E 5. 9 H LS E -15. 4 OT CN O -50.6%
R TS 1 T S XV 17.8 TS X V 4. 5 OT CB B 2. 1 BS E -27. 3 H LS E #DI V /0!
K LS E 1 AI M 4.5 AIM 4. 5 OT CN O 2. 1 O T CP K -43. 4 NYS E #DI V /0!
O T C NO 1 O T CN O 0.1 O TC NO 0. 1 AI M 0. 3 O T CB B -48. 3 AI M #DI V /0!
G rand To tal 90 G rand T otal 56,039.7 G rand To tal 622.7 G rand T otal 152.5 G rand T otal 2,789.8 G rand T otal 6.7%
Figure 29. Comparison by Exchange

Source. Capital IQ
Page 20
Financ ing - Las t Three Months (US $ m)

Mo nth Company Name C ou ntry Ange l/S eed Debt financ ing PIP E S eries A S eries B S eries C S eries D G rand T otal
A pr-09 Collec tive Media US A 20.0 20.0
G OOM R adio F ra nce 16.0 16.0
Marin S oftware US A 13.0 13.0
The R ubic o n P rojec t US A 8.0 5. 0 13.0
FreeW heel US A 12.0 12.0
Cellufun US A 10.0 10.0
Conduc to r Inc . US A 10.0 10.0
S c anS c o ut US A 8.1 8. 1
Batanga US A 7. 5 7. 5
Viximo US A 5.0 5. 0
DoubleT wis t US A 5. 0 5. 0
IMS hopping US A 4. 7 4. 7
S oc ialtext US A 4. 5 4. 5
Mixerc as t US A 4. 1 4. 1
S oundClo ud G ermany 3. 3 3. 3
Tu beMogu l US A 3. 0 3. 0
Tribal No va C a na da 2. 5 2. 5
Tripbas e US A 2. 0 2. 0
S oc ialc as t US A 1. 4 1. 4
Brandtology S inga pore 1. 4 1. 4
S c an & Target F ra nce 1.3 1. 3
J odange US A 1.2 1. 2
Fo odis ta US A 0. 6 0. 6
A pr-09 T otal 15. 6 8.0 45.3 52.5 16.1 12.0 149.5
May-09 Fac eboo k US A 200. 0 200. 0

One Net E ntertainment C hina 10. 0 10.0 20.0
Cyberplex C a na da 12.9 12.9
P eer39 US A 10.5 10.5
OpenX UK 10.0 10.0
Imeem US A 8.8 8. 8
E veryZing US A 8. 3 8. 3
Wo nderHill US A 7. 0 7. 0
BlogHer Inc . US A 7. 0 7. 0
Fu hu Inc . US A 6. 3 6. 3
Azu ki S ys tems US A 6. 0 6. 0
I Lo ve R ewards C a na da 5. 9 5. 9
TimeBridge US A 5. 0 5. 0
OLX US A 5. 0 5. 0
Doc uS ign US A 5. 0 5. 0
Medialets US A 4.0 4. 0
R es onate Netwo rks US A 2. 0 2. 0
Mo 'Minis I sra el 1. 5 1. 5
VoxPo p US A 1. 5 1. 5
Lo op'd N etwork US A 0.8 0. 8
May-09 T otal 13. 6 10.0 22.9 23.3 18.7 40.8 205.0 334.1
Page 21
Mo nth Co mpany Name C ountry Angel/S eed Debt financ ing P IP E S eries A S eries B S eries C S eries D G rand To tal
J un-09 S ugar Inc . US A 16. 0 16. 0
Tumri US A 1 5.0 15. 0
Bo ku US A 13. 0 13. 0
Wimba US A 12. 0 12. 0
G rab N etwo rks US A 12.0 12. 0
G oo jet S AS F rance 8. 5 8.5
AdMeld Inc . US A 8. 0 8.0
beeT V US A 8. 0 8.0
blueK iw i S oftware S A F rance 6. 5 6.5
No keena US A 6. 5 6.5
S ens e Netw orks US A 6. 0 6.0
Zo os k US A 6. 0 6.0
G ather US A 5. 3 5.3
Tao mee C hina 5.0 5.0
Animo to US A 4. 4 4.4
G ameG ro und I sra el 4.1 4.1
RingRevenue US A 3. 5 3.5
Crowdc as t US A 3.0 3.0
YuMe US A 2.9 2.9
eRepublik S pain 2.8 2.8
News er L L C US A 2. 5 2.5
Clic kF uel US A 2. 5 2.5
Inigral US A 2.4 2.4
AdE x Media US A 2. 3 2.3
G ROU .P S US A 2.1 2.1
Yapta US A 2. 0 2.0
OneT XT US A 2. 0 2.0
my6s ens e I sra el 2. 0 2.0
Cliqs et US A 1.5 1.5
AdW hirl US A 1.0 1.0
P ic aboo US A 1. 0 1.0
LiquidP lanner US A 1.0 1.0
G lubble N etherlands 1. 0 1.0
To daC ell I sra el 1. 0 1.0
Mas hLo gic US A 0.5 0.5
J un-09 T otal 39.3 15.3 13.5 6 7.8 34.0 5.3 175.1
Figure 30. Financing, Last Three Months

Page 22
C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity

C ompany HQ W ebs ite Des criptio n
A dE x media U nited S ta tes www.adex.com Adex Media , I nc . opera tes a s a n integra ted I nternet ma rk eting, a dv ertis ing, a nd lea d genera tion publisher, a s well a s developer, ma rk eter,
a nd dis tributor of con sumer produc ts in the U nited S ta tes . I ts ma rk eting pla tform prov ides v a rious serv ices , inc luding sea rc h ma rk eting,
displa y ma rk eting, lea d genera tion, a nd a ffilia te ma rketing; a nd offers pa y-per-performa nce pricing/c ost-per-a ction/pa y-per-a c tion ba sed
serv ices . T he c ompa ny a lso provides O vernight G enius , a computer lea rning cours e for MS W indows , MS O ffic e, eB a y , a nd others; R is ing
S ta r L ea rning a ma th a nd la ngua ge a rts educa tiona l produc t for c hildren; D ebt S na p a n a udio s emina r to help c onsumers ma na ge their
A dMeld Inc . U nited S ta tes www.admeld.com AdMeld, Inc . offers a dv ertis ing a nd s oftwa re solutions . The compa ny wa s founded in 2007 a nd is ba s ed in New Y ork , N ew Y ork.
A nimoto U nited S ta tes www.animoto.com Animoto, I nc . provides a W eb a ppli ca tion tha t a utoma tic a lly genera tes profes siona lly produc ed videos us ing i ts own c inema tic a rtifi cia l
intellige nce tec hnology a nd high-end moti on des ign. Its technology ena bles videos to get cus tomiz ed orc hes tra tion of us er-s elected ima ges
a nd mus ic. T he compa ny wa s founded in 2006 a nd is ba sed in New Y ork , New Y ork with a n a dditiona l offic e in S a n Fra nc isc o, C a lifornia .
A dW hirl U nited S ta tes www.adwhirl.com AdW hirl, I nc. dev elops online a dvertisement pla tform for iP hone a pplica tion dev elopers . The compa ny wa s founded in 2009 a nd is ba s ed in
Menlo P a rk , Ca lifornia .
beeTV U nited S ta tes www.bee.tv beeTV is y our v iewer’s own pers ona l c ha nnel tha t a ntic ipa tes their viewi ng needs a nd desi res while ta k ing i nto context their sc hedule,
beha viors a nd ev en their mood. I t uses a rev olutiona ry , proprieta ry, c ontex tua l ma tc hing a lgorithm inc orpora ti ng “huma n unders ta nding” to
offer y our viewer a n enterta ining, person a lized “cha nnel” a cc es sible from a ll three sc reens - T V , mobile a nd P C . beeTV s ervic es I P TV , c a ble,
sa tellite, mo bile, internet a nd D TT pla tforms . It is a c omplement to your exis ting na viga tion sy stem. It is a find engine ra ther tha n a s ea rch
engine
blueK iwi S oftware S A F ra nc e www.bluekiwi.fr blueK iwi S oftwa re S A designs a nd dev elops enterprise softwa re tha t fa cilita tes network coll a bora tion. T he c ompa ny wa s founded in 2006
a nd is ba sed in P a ris , F ra nce.
B oku U nited S ta tes www.boku.com B O K U, Inc . provides online pa y men ts s ervic es to pa y for v irtua l a nd digita l goods with the mobile phone. I t s erves c us tomers in the United
S ta tes a nd interna tiona lly . The compa ny wa s incorpora ted in 2008 a nd is ba sed in S a n F ra ncis co, Ca lifornia with a dditiona l offic es in E urope,
Asi a , a nd L a tin A meric a .
C liqs et U nited S ta tes www.cliqset.com C liqs et, Inc . provides a n online pla tform tha t a llows developers a nd us ers to c rea te, orga niz e, retriev e, s ha re, a nd ma nipula te s oc ia l
informa tion on the W eb, des ktop, a nd mobile env ironments. It brings together photos, bookma rks , a nd loca tions . The c ompa ny ’s pla tform
cons is ts of AP Is for ma na ging va rious a spec ts of users ’ soc ia l identity giving the a bility to build s oc ia l a pplic a tions without recrea ting the
wheel. C liqs et, I nc. wa s founded in 2008 a nd is ba s ed i n J a ck s onville, F lorida .
C rowdc as t U nited S ta tes www.crowdcast.com C rowdca s t s pecia liz es in enterpris e predic tion ma rket softwa re-a s-a serv ic e, going into enterpris e 2. 0 idea s a nd bringing the c ollective power
of the wis dom of crowds to corpora tions .
eR epublik S pa in www.erepublik.com S C E R P K W E B S A provides online ga ming a nd s ocia l network s ervic es. I ts soc ia l network a llows us ers or citizens to intera c t a nd crea te
origina l c ontent a nd to follow politica l, economic , a nd or milita ry a s pira tions . T he c ompa ny wa s founded i n 2007 a nd is ba s ed in B uc ha res t,
R oma nia .
G am eG ro und I s ra el www.gameground.com G a meG round dev elops a n onl ine s ocia l network for ga mers . The compa ny is ba s ed in I sra el.
G ath er Inc . U nited S ta tes www.gather.com G a ther, Inc . opera tes a s ocia l network ing s ite for a dults. I t ena bles us ers to s ha re thoughts, c onv ers a tions, v ideo, informa tion, pic tures ,
idea s, a nd a udio. G a ther, I nc. wa s formerly k nown a s S uffic iently Adva nc ed T ec hnology C orpora tion a nd cha nged its na me to G a ther, I nc. in
J uly 2005. The compa ny wa s incorpora ted in 2004 a nd is hea d qua rtered in B os ton, Ma s sa c hus etts. G a ther, I nc. opera tes a s a s ubsidia ry of
America n P ublic M edia G roup.
G lubble BV N etherla nds www.gubble.com G lubble i s a n online a c tiv ity c enter tha t turns pla y ing a nd s urfing on the Internet into a n experienc e for the entire fa mily . G lubble prov ides
pa rents with ea s y-to-use tools a nd a fa mily s ocia l network to s upport their c hildren’s pla y , lea rning a nd dis cov ery on the W eb. The compa ny
wa s founded in 2006 a nd ha s six employees .
G o ojet S AS F ra nc e www.goojet.com G oojet S AS provides online s ervic es. Its s ervic es include c ommunic a tion tools, da ta s ha ring, informa tion serv ices , s ocia l network ing tools,
ga mes, a nd even tra ns a c tiona l s erv ic es. T he c ompa ny a ls o ena bles us ers to c rea te a nd promote their own serv ices . G oojet S AS wa s
founded in 2007 a nd is ba s ed in P ibra c, Fra nc e.
G rab N etworks U nited S ta tes www.grabnetworks.com G ra b N etworks , I nc. di stributes a nd monetiz es vi deo c ontent on the I nternet. G ra b Network s, I nc . wa s formerly known a s Any S trea m, I nc .
a nd c ha nged its na me to G ra b N etworks , I nc. in S eptember 2008. T he c ompa ny wa s founded i n 2000 a nd is hea dqua rtered in D ulles,
G R OU .P S U nited S ta tes www.gro.ps/groudotps V
G rou.ps provides a sha ring a nd communica tion p la tform for s ocia l groups . It fea tures wik i, photos , link s, blogs, a nd c a lenda r. The c ompa ny
is ba s ed in S a n F ra nc isc o, C a lifornia .
I Lo ve R ewards Inc . C a na da www.iloverewards.com I L ove R ewa rds I nc. opera tes a s a W eb-ba sed inc entiv e ma rk eting compa ny . It des igns , develops , a nd imple ments online points -ba sed
employee rewa rds a nd recognition progra ms for compa nies a nd busines s es in N orth America . The compa ny prov ides employ ee recognition,
sa les incentives , rec ess ion pa ck a ge, a nd enga ge genera tion Y s olutions . I t serv es communic a tions , informa tion tec hnology, ins ura nc e,
profes s iona l s ervic es , reta il/cons umer goods , hos pita lity, food serv ices , ma nufa c turing, a nd tra ns port industries . I L ove R ewa rds I nc. wa s
founded in 1995 a nd is ba s ed in Toronto, C a na da .
In ig ral U nited S ta tes www.inigral.com Inigra l, Inc . enga ges in the development of s oc ia l network ing website for students , their peers a nd their ins tru ctors. I nigra l, I nc. is ba sed in
P a lo A lto, C a lifornia .
L iquidP lan ner U nited S ta tes wwww.liquidpl anner.com L iquidP la nner, I nc. offers online projec t ma na gement tools . I t offers a sy stem for c a pturing es tima tes a nd crea ting proba bilis tic sc hedules .
T he c ompa ny wa s formerly k nown a s Tea m46, I nc . The compa ny wa s founded in 2006 a nd is ba s ed in B ellevue, Wa s hington.
Mas hLo gic U nited S ta tes www.mashlogic.com Ma s hL ogic I nc. enga ges in dev eloping c us tomized web brows ers. The compa ny wa s founded in 2007 a nd is ba sed in Menlo P a rk, Ca lifornia .
m y6s en s e I s ra el www.my6sense.com my 6s ense Inc . prov ides mobi le technology s olutions. I t offers D igita l I ntuition tha t c onnec ts us ers with content providing wa y to experienc e
informa tion on mobile a nd desk top. The c ompa ny wa s founded in 2007 a nd is ba s ed in Herz liya P itua ch, I s ra el.
News er L LC U nited S ta tes www.newser.com Newser L L C provides online news serv ices . I t offers news in the a rea s of a rts a nd liv ing, politics , bus iness , s cienc e a nd hea lth, crime a nd
courts , sports, tec hnology, a nd media . T he c ompa ny wa s inc orpora ted in 2007 a nd is ba sed in Chic a go, Il linois.
Nokee na U nited S ta tes www.nokeena.com Nok eena N etwork s, I nc. enga ges in dev elopment of technology to dis tribute a nd s tore online videos . I t develops v ideo proces sing a nd
network opti miz a tion tec hnology tha t elimina tes v ideo stops a nd sta rts by monitoring c onges tion on the network, a nd a djus ts v ideo
tra ns miss ion a cc ordingly. T he compa ny wa s founded in 2008 a nd is ba sed in S a nta C la ra , C a liforni a .
On eTX T U nited S ta tes www.onetxt.com O neT X T prov ides a pa yments proces sing a lterna tiv e for s oc ia l network s, onl ine ga mes to a c cept pa yments , c rea te loya lty progra ms, a nd
send ma rketing mes sa ges .
P ic aboo U nited S ta tes www.picaboo.com P ic a boo C orpora tion provides onli ne photo book s a nd ca rds . I t offers a softwa re progra m tha t turns photos into photo book s. The compa ny
wa s founded in 2002 a nd is ba sed in M enlo P a rk , C a lifornia .
R ing R evenu e U nited S ta tes www.ringrevenue.com R ing R ev enue, I nc. prov ides online ca ll tra c k ing s ervic es . The compa ny wa s incorpora ted in 2009 a nd is ba sed in S a n ta B a rba ra , Ca lifornia .
Page 23
S ens e Networks U nited S ta tes www.sensenetworks.com A ma c hine-lea rning s ta rtup co-founded by MI T computer s cientis t S a ndy P entla nd, S ense N etwork s c ollec ts billions of da ta points a bout
people’s loc a tions from c ell phones, ta xi ca bs , c a mera s, a nd G P S devic es. It then a na ly zes the da ta look ing for a ggrega te pa tterns a bout
cons umer beha v ior which it hopes to s ell to fina nc ia l institutions a nd inves tors. F ounded 20 03.
S ug ar Inc . U nited S ta tes www.sugarinc.com S uga r, I nc. opera tes a s a n online media compa ny . It opera tes lifes ty le a nd enterta inment W ebsites tha t cov er celebrity, fa s hion, shopping,
bea uty , enterta inment, food, a nd hea lth topics . T he c ompa ny a lso offers a shopping engine for fa s hion a nd bea uty ca tegories . S uga r, I nc. ,
formerly k nown a s S uga r P ublishing, I nc ., wa s founde d in 2006 a nd is hea dqua rtered in S a n F ra nc isc o, C a lifornia .
T aoMee C hina www.taomee.com S uga r, I nc. opera tes a s a n online media compa ny . It opera tes lifes ty le a nd enterta inment W ebsites tha t cov er celebrity, fa s hion, shopping,
bea uty , enterta inment, food, a nd hea lth topics . T he c ompa ny a lso offers a shopping engine for fa s hion a nd bea uty ca tegories . S uga r, I nc. ,
formerly k nown a s S uga r P ublishing, I nc ., wa s founde d in 2006 a nd is hea dqua rtered in S a n F ra nc isc o, C a lifornia .
T odaCell I s ra el www.todacell.com T oda ! C ell is a n I T c ompa ny founded in M a rch 2007 by a tea m of vetera ns of the online a dv ertis ing indus try a nd ex perts in mobile a dv ertis ing
tec hnology.
T um ri U nited S ta tes www.tumri.co T umri, I nc. provides online dis pla y a dvertising sol utions . The c ompa ny ’s s olution, the AdP od, ena bles a dv ertis ers to c rea te a nd del iver
ta rgeted online dis pla y a ds to c onsumers . It serv es a dvertis ers , c rea tiv e a nd media buy ing a gencies , a nd publishers . The c ompa ny wa s
founded in 2004 a nd is ba s ed in Mounta in V iew, C a lifornia .
W imba Inc U nited S ta tes www.wimba.com W imba , Inc . provides lea rning s oftwa re a pplic a tions a nd s ervic es to the educ a tion indus try in the Un ited S ta tes a nd the United K ingdom. The
compa ny offers D iploma , a qu estion a uthoring a n d ma na gement tool tha t a llows ins truc tors to c rea te or edit ques tions; C la s sroom 5. 2, a
cla s s room environment with va rious fea tures tha t include a udio, vid eo, a pplica tion sha ring, a nd c ontent dis pla y; a nd C olla bora tion S uite tha t
a llows ins titutions to bridge the ga p between technology a nd peda gogy by s upplementing cours e ma na gement s ys tems . It a ls o provides
C rea te, a content a uthori ng tool, whic h c onv erts M icros oft W ord doc uments into c ontent for online cours es; P ronto, a n a ca demic mes sa ging
pla tform, whic h is designed for educ a tors to a dv a nc e a nd promote lea rning; V oic e, a W eb-ba s ed v oic e s olution th a t fa c ilita tes a nd promotes
voc a l in struction, c olla bora tion, c oa c hing, a nd a s s ess ment; a nd CM S Integra tion. I t s erves univ ersities , community colleges , s chool distric ts ,
a nd educ a tion ins titutions. T he compa ny wa s formerly known a s H orizon W imba , Inc . a nd cha nged its na me to W imba , I nc. in April 2007.
W imba Inc wa s founded in 1998 a nd is ba sed in N ew Y ork New Y ork with a dditiona l offic es in C a mbridge U nited K ingdom; a nd A tla nta G e
Yapta U nited S ta tes www.yapta.com Y a pta , Inc ., a lso known a s Y our Ama zing P ers ona l T ra vel As sis ta nt, prov ides online tra vel s hopping s ervic e tha t monitors a irline tic ket
pricing a nd a wa rd sea t a v a ila bility for tra v elers. T he compa ny ena bles tra velers a nd s ma ll bus iness es to find flights a nd hotel rooms , rec ord
persona l flight preferenc es , tra c k a irfa re a nd hotel pric es, a nd be a lerted when prices drop to book a flight. I t a ls o prov ides hote l pric e
tra c k ing s ervic es tha t ena ble tra velers to tra c k a nd compa re pricing on na tiona l a nd interna tiona l hotel properties. Y a pta , I nc . wa s founded in
2006 a nd is ba s ed in S ea ttle, W a s hington.
YuMe U nited S ta tes www.yumenetworks.co m Y uMe, I nc . opera tes a s a v ideo a dv ertis ing network on W eb. I t offers a d ma na gement sy stem tha t ena bles a dv ertis ers a nd publishers to
identify, cla s sify , a nd tra ck content throu gh digita l media pla tforms, s uc h a s W eb, downloa ds, mobile, a n d I P T V . The compa ny a ls o ena bles
publishers to orga nize video on their site i nto content c ha nnels, s uc h a s a utomotiv e, fi na ncia l serv ices , lifesty le, news , music , s ports ,
enterta inment, a nd fa mily friendly. In a ddition, it offers rea l-time ta rgeting, mea s urement, a nd optimiza tion; c ontent distribution a nd vira l
a dvertising opportunities ; a suite of intera c tiv e a d pla c ements ; a nd v ideo monetiza tion s ervic es . F urther, the c ompa ny provides a beha viora l
ta rgeting sy stem tha t ena bles a dv ertis ers to ta rget their mess a ges to v iewers on a na tiona l sc a le ba s ed on v ideo v iewing interes ts a nd
purcha s e intent. Y uMe, Inc . wa s founded in 2004 a nd is hea dqua rtered in R edwood City, Ca lifornia .
Zoos k U nited S ta tes www.zoosk.com Zoos k , Inc . opera tes a s a n online s ocia l da ting network . T he c ompa ny wa s founded in 2007 a nd is ba s ed in S a n Fra nc isc o, C a lifornia .
Figure 31. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
Page 24
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Tor ont o 41 6. 860 .7 60 0 M ontr eal 5 14. 39 9. 15 00 V a nc ouve r 6 04.6 6 2.1 80 0 Ca lgar y 4 0 3. 2 65 .7 40 0 Re gi na 30 6.5 66. 75 50
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Web 2.O Weekly: Increased Deal Activity But Deal Sizes Drop

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Web 2.O Weekly: Increased Deal Activity But Deal Sizes Drop

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SOFTWARE & SERVICES 30 JUNE 2009

DAVID SHORE, CFA, MBA 416.860.6784

INCREASED DEAL ACTIVITY; BUT DEAL SIZES DROP

Financing by Type Financing by Type

Late Stage (D/E)

50 Mid Stage (B/C) Mid Stage (B/C)

THE WEB 2.0 UNIVERSE

Figure 1. Web 2.0 Universe Summary

CAPITAL MARKETS ACTIVITY (M&A AND FINANCING)

Financing Activity Last Three Months

Figure 2. Financings, Last Three Months

Source. Company reports

Figure 3. Capital Market Activity, Last Three Months

Capital Market Activity by Sector - Last Three Months

Figure 4. Capital Market Activity, by Sector, Last Three Months

Figure 5. Financings, Last 12 Months

Web 2.0 Financing (cumulative)

1,400.0 1,347.6 7,000.0

Figure 6. Financing, Cumulative

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

Figures 7 & 8. Financing/M&A, by Country (LTM, $, #)

Financing by Type - LTM

Figure 9 Financing, by Type (LTM, #)

Average financing round size

11.3 10.9 11.3 10.8

LTM Average Size Overall Average

Figure 10. Average Size per Round

Financing by Type Financing by Type

50 Mid Stage (B/C) Late Stage (D

2 Early Stage (Angel/A) 600.0 Mid Stage (B

183.2 180.1 197.4

Figures 11 &. 12 Financing/M&A, by Country (LTM, $, #)

CAPITAL MARKETS ACTIVITY (PRICE PERFORMANCE)

Web 2.0 Index Price Performance

Figure 13. Web 2.0 Price Performance

1 Week P rice P erformance

Figure 14. 1-Week Price Performance

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

Figure 15. Key Developments

Figure 16. Market Cap Ranking

T E V/L T M R evenue (x)

G amania Digital E ntertainment C o.,

G ungHo O nline E ntertainment, Inc .

C hines e G amer International

Northgate T ec hnologies Limited

T ree.C om, Inc .

S K C ommunic ations C o. , L td.

B ey ond C ommerc e, Inc .

DigitalP os t Interac tive, Inc .

C hangy ou.c om Limited

Dolphin Digital Media, Inc .

Modern T imes G roup Mtg AB

L ingo Media C orporation

IAC /InterActiveC orp.

S park Network s , Inc.

V alueC lick Inc.

NetDragon WebS oft, Inc.

S ohu. com Inc.

T enc ent Holdings L td.

As s oc iated Media Holdings Inc.

P erfec t World C o., Ltd.

B right T hings plc

HanbitS oft, Inc.