SOFTWARE & SERVICES
30 JUNE 2009
WEB 2.O WEEKLY
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
DAVID SHORE, CFA, MBA 416.860.6784
david.shore@researchcapital.com Arun Thomas (Associate) 416.860.7666
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 ($1.3 billion).
Financing by Type (Number of Deals)
100
1,200.0
Financing by Type (Amount raised)
90 5 80 3
143.0 1,000.0
5 70
800.0
35 60 5
40 32
147.1
Late Stage (D/E) Mid Stage (B/C) Early Stage (Angel/A)
(US$m)
Late Stage (D/E) 600.0 780.0 35.0 53.5 222.3 501.4 400.0 361.8 400.3 27.7 229.7 Mid Stage (B/C) Early Stage (Angel/A)
(#)
50 24 40 20 30 45 20 32 25 10 18 21 42 2 2
39
200.0 212.4 183.2 197.4 149.7 75.3
180.1
150.6
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 week VOIS worst Performance: Most of the companies in our universe had positive stock price performances over the past (for stocks with prices greater than $1) (Figure 13), with 26 companies showing positive returns on the week. Inc. (VOIS-OTCBB) led the group with a 200.0% return, while Actoz Soft Co. Ltd. (A052790-KOSE) had the 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.
Toronto 416.860.7600 Montreal 514.399.1500 www.researchcapital.com Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
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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
C om pany Nam e
Acce le riz e N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Co rp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer In ternational C ornerW orld C orporation C yberplex Inc. D ADA S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, In c. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B D is tribution Inc. K ings oft Co. Ltd. Lingo Media Corporation Live Wo rld Inc. LookS mart, Ltd. Magnitude Information S ys tems Inc. Mixi, Inc. Mode rn Times G roup Mtg AB MOK O.mobi L imited Myriad G rou p AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge Median
L TM as o f T ic ker
3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 6 /30 /200 7 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 9 /30 /200 8 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 2 /28 /200 9 NA 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 9 /30 /200 8 6 /30 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 1 2/31 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 9 /30 /200 7 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 7 3 /31 /200 9 3 /31 /200 9 1 2/31 /200 8 3 /31 /200 9 9 /30 /200 8 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 8/2/2008 1 2/31 /200 8 3 /31 /200 9 3 /31 /200 6 3 /31 /200 9 2 /28 /200 9 3 /31 /200 9 1 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 3 /31 /200 9 NA 3 /31 /200 9 1 2/31 /200 7 1 2/31 /200 8 3 /31 /200 9 AC LZ A0 527 90 38 38 AS MH BS GC B W AV B Y OC AIM :B G T BW BA C HIN .A C Y OU C GW Y G T S M:308 3 C WR L T S X:C X C M:D A DXN DIB Z DG LP DG T W DP DM A0 410 60 E XT I F NG P T S X:F MN F RG 61 80 38 12 G E O1 V GA G IG M GR VY T S E : 363 2 37 65 A0 470 80 IAC I IAS C.A IE E AS X:J MB T S X:J T V T S X:K AB 38 88 T S XV : LM LV WD LOOK MA G Y 21 21 MT G B MK B MY R N A0 956 60 77 7 NT E S N XP C 24 97 59 005 7 OT E X OP W V PW R D QP S A R BCI S N DA S F LY A0 662 70 S T VI S N MN S MV I S C LW S OH U LOV S P XA 70 0 K ID S .Q N CT Y TSCM T OS O TR EE T S XV : US S U NT D U OMO V C LK V OIS W ZE N W ZE W DD D W YND O1B C A0 527 70 A0 237 70 T S XV : ZIP
E xc hange
OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GTSM OT C B B TSX CM KLSE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTSM TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX K OS E S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S OT C P K R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K OT C B B N as da qG S AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C P K XT R A K OS E K OS E T S XV
Trading Currenc y HQ
US D KR W J PY US D US D US D US D GBP US D US D US D US D TWD US D C AD EUR MY R US D US D US D US D KR W US D US D C AD EUR TWD J PY EUR US D US D US D J PY J PY KR W US D US D C AD AU D C AD C AD HKD C AD US D US D US D J PY S EK AU D C HF KR W HKD US D US D J PY INR US D US D US D US D US D US D US D KR W US D US D US D US D US D US D US D HKD US D US D US D NOK US D C AD US D US D US D US D US D US D US D US D EUR KR W KR W C AD U nited S ta tes S outh K orea J apan U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes U nited K ingdom U nited S ta tes H ong K ong C hina U nited S ta tes T aiwan U nited S ta tes C ana da Ita ly Ma la ys ia U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany T aiwan J apan F inland C hina T aiwan S outh K orea J apan J apan S outh K orea U nited S ta tes C ana da C ana da Aus tra lia C ana da C ana da C hina C ana da U nited S ta tes U nited S ta tes U nited S ta tes J apan S weden Aus tra lia S witzerla nd S outh K orea C hina C hina U nited S ta tes J apan India C ana da U nited S ta tes C hina U nited S ta tes R us s ia C hina U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes U nited S ta tes C hina U nited S ta tes U nited S ta tes C hina U nited S ta tes C hina U nited S ta tes N orwa y U nited S ta tes C ana da U nited S ta tes C ana da U nited S ta tes U nited S ta tes S outh K orea U nited S ta tes U nited S ta tes U nited S ta tes G ermany S outh K orea S outh K orea C ana da
Cu rrent P ric e
0 .40 24 000 71 200 0 .02 0 .03 0 .10 0 .65 0 .01 0 .23 1 .55 43 .63 0 .02 420 .00 0 .06 1 .65 6 .30 0 .39 0 .00 0 .04 2 .05 0 .47 790 .00 0 .10 0 .00 0 .79 9 .90 58 .00 107 400 0 .04 8 .39 5 .98 1 .09 6 750 240 100 4 430 15 .91 0 .20 0 .08 0 .39 0 .74 0 .63 5 .69 1 .10 0 .06 1 .14 0 .01 589 000 217 0 .08 5 32 100 5 .03 36 .90 0 .61 35 900 .00 42 .05 36 .70 2 .41 30 .55 0 .68 0 .90 57 .20 14 .81 9 810 .00 0 .45 0 .01 0 .01 0 .68 65 .87 2 .47 0 .20 94 .55 0 .02 10 .63 2 .16 0 9 .65 0 .08 6 .47 0 .15 11 1 3 0 .51 0 .12 0 .04 29 .88 8 400 .00 6 800 .00 0 .01
U S D Market C ap ($m)
1 1.1 16 0.4 4 0.4 0 .9 1 .7 2 .9 2 9.3 4 .5 1 9.5 16 4.4 2,3 99.7 0 .3 1,0 73.3 3 .9 9 2.3 14 3.5 2 5.1 0 .0 2 .6 5 5.5 2 4.3 4 4.7 4 .4 0 .2 3 5.8 3 2.7 26 7.7 10 8.3 5 0.5 1,8 94.9 32 6.0 3 0.3 1,5 72.3 28 6.8 7 5.8 2,4 01.1 1 4.0 3 .5 1 5.5 7 2.7 7 6.2 79 6.5 1 2.2 1 .9 1 9.5 5 .5 94 4.4 1,8 50.0 5 .2 9 8.0 26 3.9 34 3.1 4,5 40.6 3 4.0 4 6.3 3 0.5 1,9 31.3 20 0.8 1,4 85.8 8 .6 12 4.8 3,9 68.7 37 2.8 32 1.2 4 .9 0 .0 0 .0 2 9.5 2,5 20.4 5 0.8 9 .7 22,0 11. 2 0 .4 28 5.1 6 6.1 0 .1 10 4.2 1 .7 54 0.8 1 2.9 99 3.2 8 .7 4 1.0 2 4.4 6 .3 0 .7 22 1.3 10 3.0 2 8.4 0 .3 22,0 11. 2 0 .0 622.7 5 0.5
U S D LT M To tal R ev ($m)
4.1 90. 2 64. 5 0.1 0.1 8.4 7.1 0.3 0.0 389 .9 222 .5 6.7 56. 1 1.3 70. 4 236 .1 78. 1 NA 0.7 NM 0.8 14. 4 NM 7.2 5.0 3.2 125 .9 76. 7 5.9 218 .9 183 .6 38. 2 30. 6 107 .5 53. 9 1 ,40 6.4 0.0 1.5 14. 4 18. 1 71. 1 129 .0 0.9 11. 4 60. 7 0.1 125 .7 1 ,74 1.6 1.2 40. 0 193 .4 86. 9 470 .4 NM 92. 1 116 .5 782 .6 197 .2 228 .1 0.1 151 .8 570 .0 215 .2 179 .8 3.3 2.0 0.1 0.0 460 .0 54. 3 0.1 1 ,20 3.3 112 .0 249 .9 67. 0 2.1 215 .6 22. 5 811 .2 0.6 591 .7 0.0 22. 5 5.6 0.0 NA 53. 2 53. 6 11. 1 2.6 1 ,741 .6 0.0 152 .5 53. 7
US D L TM T otal E B ITDA ($m)
(4 .4) 1 9.6 4 .1 (2 .3) (2 .0) (1 2.6) (9 .5) (1 .9) (4 .6) 3 0.8 13 5.1 (6 .6) 3 1.4 NM 7 .3 3 4.5 1 0.7 NM (2 .6) (3 .0) (3 .7) (3 .4) NM 2 .4 (6 .9) (6 .1) 2 0.9 1 8.2 (1 5.4) NM NM 7 .3 1 1.0 1 9.3 (1 4.5) 4 2.6 (0 .8) (4 .7) 5 .4 (1 1.8) 8 .5 5 2.0 (1 .5) (0 .0) (3 .8) (3 .1) 4 4.6 26 6.8 (2 .4) 0 .8 5 1.9 3 4.4 30 5.7 (4 .9) 1 1.0 (2 7.3) 19 9.2 (2 .1) 12 4.6 (1 0.8) 1 9.8 26 0.8 2 8.3 1 1.7 0 .9 (0 .7) (0 .1) (4 .8) 20 0.5 1 1.8 (2 .6) 57 6.6 (1 3.5) 8 4.2 1 .9 (1 .1) (1 3.3) 0 .1 17 7.3 (0 .5) 10 5.5 (1 .1) (0 .4) (5 .3) (0 .8) NM 1 6.6 1 1.5 1 .2 (2 .0) 57 6.6 -27.3 33.2 0 .9
E BITDA %
NM 21 .7% 6 .3% NM NM NM NM NM NM 7 .9% 60 .7% -9 8.9% 56 .0% NM 10 .3% 14 .6% 13 .7% NM NM NM NM -2 3.6% NM 34 .1% NM NM 16 .6% 23 .7% NM NM NM 19 .2% 36 .0% 18 .0% -2 6.8% 3 .0% NM NM 37 .2% -6 5.2% 11 .9% 40 .3% NM -0 .4% -6 .3% NM 35 .4% 15 .3% NM 1 .9% 26 .8% 39 .5% 65 .0% NM 12 .0% -2 3.5% 25 .5% -1 .0% 54 .6% NM 13 .1% 45 .8% 13 .2% 6 .5% 28 .0% -3 4.8% -6 0.5% NM 43 .6% 21 .7% NM 47 .9% -1 2.0% 33 .7% 2 .9% -5 0.6% -6 .2% 0 .2% 21 .9% -7 8.2% 17 .8% NM -1 .9% -9 4.5% NM NM 31 .2% 21 .6% 10 .5% -7 8.3% 65 .0% -9 8.9% 6.7% 13 .2%
T E V/LT M R evenu e
3.9x 1.5x 0.2x 1 9.2 x 4 1.6 x 4.8x 1 6.1 x 0.5x 9.9x 0.0x 1 8.0 x 4.1x 1.3x 0.8x 0.5x 5.8x 3 2.7 x 3.2x 5.6x 9.6x 1.9x 0.6x 7.8x 1.4x 4 8.6 x 2.4x 1.1x 0.4x 1.8x 0.7x 3.5x 1.1x 5.8x 1 2.6 x 0.1x 6.6x 1.4x 3.5x 2.7x 1.3x 2.3x 0.1x 0.3x 2.6x 0.5x 0.3x 0.0x 0.2x 1.4x 1.8x 1.0x 1.1x 0.0x 4.7x 0.9x 2 0.0 x 0.2x 0.0x 4.6x 0.4x 0.2x 1.0x 2 0.8 x 1.5x 4.6x 3.2x 2.1x 2.5x 0.6x 4 8.6 x 0.0x 5.3x 1.5x
TE V /L TM E BITDA
6. 7x 2. 8x 5. 8x 16 .4x 32 .1x 12 .2x 5. 6x 3. 8x 11 .7x 2. 6x 13 .4x 12 .1x 2. 0x 9. 6x 14 .3x 18 .5x 9. 0x 4. 9x 5. 9x 0. 5x 10 .0x 0. 5x 0. 2x 0. 3x 10 .8x 27 .5x 3. 7x 10 .7x 4. 4x 41 .6x 0. 8x 4. 7x 8. 4x 10 .2x 9. 8x 23 .5x 41 .6x 0. 2x 9.9x 9. 3x
E mplo yees
11 NA NA 3 4 53 69 9 46 NA 6 28 37 NA NA NA 5 78 NA NA 7 3 NA NA 2 22 NA NA NA NA 1 08 1, 570 NA 6 36 NA NA NA 3, 200 NA NA 72 2 37 NA 2, 271 NA NA 90 14 NA 2, 969 NA 4 05 NA 2, 426 NA 19 NA NA 3, 400 6 30 2, 096 74 NA NA 5 14 NA 11 33 NA NA 3, 197 1 83 7 6, 194 3 47 NA 3 10 16 7 00 NA 1, 469 NA 1, 189 4 3 14 1 10 1 NA 2 39 NA NA NA 6,1 94 1 745 3 10
Figure 1. Web 2.0 Universe Summary Source. Capital IQ
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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 $6.2 million on 23 financings.
Financing Activity Last Three Months
200.0 7.0
180.0
6.2
6.4 6.0
160.0
140.0 4.7
5.0
120.0 4.0 (US$m) 100.0 3.0 80.0 (US$m) 2.0 1.0 20.0 0.0 Apr-09 May-09 (excl FB) Total Average Jun-09
60.0
40.0
0.0
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) 100.0 150.0 200.0 250.0 50.0 0.0
Figure 3. Capital Market Activity, Last Three Months Source. Company reports
Financing & M/A Summary - Last Three Months
Facebook StumbleUpon One Net Entertainment Collective Media Sugar Inc. GOOM Radio Tumri Boku Marin Software The Rubicon Project Cyberplex Wimba Grab Networks FreeWheel 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 AdEx Media GROU.PS Yapta Resonate Networks Tripbase OneTXT my6sense Cliqset Mo'Minis VoxPop Socialcast Brandtology Scan & Target Jodange LiquidPlanner TodaCell Glubble AdWhirl Picaboo Loop'd Network Foodista MashLogic Jaxtr Apr-09 Jun-09 May-09
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Social Network remains the most active sector: Activity over the last three months was busiest in the Social Network sector, with 13 companies raising over $246.4 million (Figure 4). The Ad Network sector has the next highest totals, with 17 companies raising $130.2 million. We would note that the Facebook transaction at $200 million (in May) has skewed the results significantly in favour of Social Networks. Nevertheless, the following sectors continue to generate the most capital activity over the last few months: Ad Network, Media, Gaming, Video, and Social Networks.
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Capital Market Activity by Sector - Last Three Months
300.0
250.0
200.0
(US$m)
150.0 246.4 100.0
130.2 50.0 48.3 0.0 Gaming Media Social Networks Ad Network
35.8
30.2 Comment/Reputation
28.4 Video
23.0 Blog
19.5 Virtual World
18.3 Search
18.2 Enterprise
17.5 Infrastructure
17.0 Collaboration
13.0 Mobile Payment
10.4 Widget
8.0 Mobile
6.8 Aggregation
4.7 Social Commerce
4.4 Analytics
2.0 Travel
1.3 SAS 1
# companies
13
17
7
6
2
3
2
4
2
5
5
3
1
2
2
1
1
2
1
Figure 4. Capital Market Activity, by Sector, Last Three Months Source. Company reports
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).
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LTM Financing
4,000.0 18.0
3,500.0
16.0
14.0 3,000.0
12.0 2,500.0 10.0 (US$m) 2,000.0 ` 8.0 1,500.0 6.0 (US$m) 4.0 2.0 0.0 Oct-05 Oct-06 Oct-07 Aug-05 Aug-06 Aug-07 Aug-08 Oct-08 Apr-07 Apr-08 Dec-06 Dec-07 Dec-08 Apr-06 Dec-05 Feb-09 Apr-09 Feb-07 Feb-08 Feb-06 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Average
1,000.0
500.0
0.0
Total
Figure 5. Financings, Last 12 Months Source. Company reports
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 ($1.3 billion).
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Web 2.0 Financing (cumulative)
1,600.0 8,000.0
1,400.0
1,347.6
7,000.0
1,200.0 1,000.6 1,000.0 857.6 (US$m) 800.0 594.2 658.8 608.3
6,000.0
5,000.0 (US$m)
4,000.0
600.0
3,000.0
400.0
380.9
361.3
2,000.0
200.0 88.3 38.8 24.7 0.0 61.5 51.7 33.5 22.2 43.3
203.7 174.8177.8 132.4145.6130.4
1,000.0
0.0 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 2004 2005 2006 2007 2008 2009
Figure 6. Financing, Cumulative Source. Company reports
U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 79.9% of financings/M&A involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 72.8% of deals, while the UK and Israel took 4.9% and 4.5% share of the total number of financings, respectively (Figure 8).
Financing/M&A by Country - LTM ($)
China 4.7%
France 3.6% UK 3.4% Israel 2.9%
Financing/M&A by Country - LTM (#) Israel Canada UK 4.5% 4.1% 4.9%
France 3.7%
Canada 2.3%
ROW 10.1%
Netherlands 1.0%
ROW 3.2%
USA 78.9%
USA 72.8%
Figures 7 & 8. Financing/M&A, by Country (LTM, $, #) Source. Company reports
Page 8
Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 27.8% of the total, with later-stage (Series D, E and PIPE) deals accounting for just 7.7%.
Financing by Type - LTM
Series B 27.8%
Series C 12.8%
Series D 4.4% Series E 0.7%
Angel/Seed 12.5%
Series A 37.0% Debt financing 2.2% PIPE 2.6%
Figure 9 Financing, by Type (LTM, #) Source. Company reports
Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, C and D rounds has all been lower than the overall average (Figure 10).
Page 9
Average financing round size
45.0 41.9 40.0
35.0
34.7
30.0 26.3 25.0 (US$m) 24.0 26.0
20.0
19.2
15.0 11.3 10.9 10.0 7.1 5.0 6.3 5.3 3.0 2.8 6.6 11.3 10.8
0.0 Angel/Seed Debt financing PIPE Series A LTM Average Size Series B Overall Average Series C Series D Series E
Figure 10. Average Size per Round Source. Company reports
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 $1.1 billion in Q2/CY08.
Financing by Type (Number of Deals)
100
Financing by Type (Amount raised)
1,200.0
90 5 80 3
143.0 1,000.0
5
70 35 60 5 32 (#) 50 24 40 20 30 45 20 32 25 10 18 2 2 Late Stage (D/E) Early Stage (Angel/A)
40
800.0 147.1
(US$m)
Mid Stage (B/C)
Late Stage (D 600.0 780.0 35.0 53.5 222.3 501.4 Mid Stage (B Early Stage (
21 42
400.0
361.8 400.3 27.7 229.7
39
200.0
212.4 183.2 197.4 75.3
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09
180.1
149.7
150.6
Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09
Figures 11 &. 12 Financing/M&A, by Country (LTM, $, #) Source. Company reports
Page 10
CAPITAL MARKETS ACTIVITY (PRICE PERFORMANCE) Price Performance: Our Web 2.0 index (market-cap weighted) underperformed the NASDAQ composite index from mid2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 13).
120
Web 2.0 Index Price Performance
110
100
90
80
70
60
50
40 9/8/2008 2/9/2009 3/9/2009 4/6/2009 5/4/2009 6/30/2008 7/14/2008 7/28/2008 8/11/2008 8/25/2008 9/22/2008 10/6/2008 11/3/2008 12/1/2008 1/12/2009 1/26/2009 2/23/2009 3/23/2009 4/20/2009 5/18/2009 6/1/2009 6/15/2009 10/20/2008 11/17/2008 12/15/2008 12/29/2008 6/29/2009
^COMP - Share Pricing
Figure 13. Web 2.0 Price Performance Source. Capital IQ
Index: Web 2.0 X (Market Cap Weights) - Index Value
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. Frogs ter Interactive Pic tures A G Chines e Gamer International Changy ou.com Limited Openw ave S y s tems Inc. S hutterfly , Inc. Modern Times Group Mtg A B Northgate Technologies Limited Mix i, Inc. CDC Corp. S handa Interactive Entertainment Ltd. K ings of t Co. Ltd. Neteas e.com Inc. V alueClic k Inc. DA DA S pA United Online Inc. S ohu.com Inc. G amania Digital Entertainment Co., Ltd. GigaMedia Ltd. Y nk K orea Inc. Tencent Holdings Ltd. Perf ect World Co., Ltd. Open Tex t Corp. Giant Interac tive G roup, Inc. S park Netw orks , Inc. The9 Limited Lingo Media Corporation IA C/InterA ctiveCorp. XING A G Cy berplex Inc. NetDragon WebS of t, Inc. Ngi G roup Inc. Eolith Co. Ltd. HanbitS of t, Inc. Y edangOnline Corp. A Q Interactive, Inc. G ree, Inc. NEOWIZ Games Corporation G ameOn Co Ltd. A ctoz S of t Co., Ltd. -50.0%
Figure 14. 1-Week Price Performance Source. Capital IQ
200.0% 24.5% 23. 7% 23.3% 18.7% 13.6% 13.3% 12.7% 12.6% 11.5% 10.4% 9.4% 9.2% 8.1% 7.7% 7.7% 7.6% 7.4% 7.4% 7.1% 6.4% 5.6% 4. 9% 4. 9% 3.8% 0.9% 0.0% -0.3% -0.4% -0.6% -2.5% -2.6% -3. 7% -3. 7% -4.7% -5.3% -5.9% -6.3% -7.7% -14.3% 0.0% 50.0% 100.0% 150.0% 200.0% 250.0%
Page 12
INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)
K ey Developmen ts
C ompany
G eo S entric Oyj (HL S E :G E O1V )
Headline
G eoS entric O yj Adds E nglis h C a pa bility to G yP S i i Applic a tion
Notes
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 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 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 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 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 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 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. 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 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 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 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 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. 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 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 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 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. 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 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. 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 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. 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 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, 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. 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. 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. 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 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 .
G iant Interac tive G ro u p, Inc . (N YS E :G A)
G ia nt I ntera c tiv e L a unc hes the G olden L a nd, I ts Firs t W eb G a me
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 Friend Fi nding T echnology to G eoS entric O yj
V OIS , Inc . (OTC BB :VOIS )
V O IS I nc. F iles Amendment to Articles of Inc orpora ti on
T he9 L imited (Nas daqG S : NC TY)
The9 L imited L ays O ff E mploy ees in B ei jing
2K S po rts Inc .; T enc ent H oldings Ltd. (S E HK :700)
2K S ports P a rtners with Tenc ent to B ring NB A(R ) 2 K O nline to Asia
W o oz yFly, Inc . (OTC BB :WZYF )
W oozy Fly I nc. Triggered R epa y ment O bliga tions of its S ecu red C onvertible N otes Due June 30, 2011
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 $1,000, 000 L oa n Agreement B eyond C ommerce, Inc . Announc es L oca l AdL ink's E xpa ns ion into Austra lia
B eyond Co mmerc e, Inc . (OT CB B: B YOC)
IAC /InterAc tiveC orp. (Nas daqG S : IAC I)
IAC /InterActiveC orp. Appoints R ic ha rd F. Z a nnino to the B oa rd of Direc tors a nd to the Audit Committee Unis erve C ommunic a tions C orp. Announc es Ma na gement C ha nges
U nis erve C ommu nic ations C orp. (T S XV:U S S )
A irMedia G rou p Inc . (N as daqG M:AMCN ); S o hu.c om Inc . (N as daqG S :S OH U) S pec trumD NA, Inc . (OTC BB :S P XA)
S ohu.c om N ot B uy ing AirM edia G roup
S pec trumDN A, I nc. Announc es B oa rd C ha nges
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 Digital 51% sta ke in F ueps S . p.A . from R C S D igita l fo r €1. 4 million. 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 M edia C orpora tion, Annua l G en era l M eeting, J un 29, 2009 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 .
L ingo Media C orpo ration (TS XV: L M)
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 S ohu.c om Inc. IA C/InterA ctiveCorp. Changy ou.com Limited Open Tex t Corp. G iant Interactive G roup, Inc. Modern Times G roup Mtg A B G ree, Inc. Perf ec t World Co. , Ltd. Chines e G amer International V alueClick Inc. Mix i, Inc. K ings of t Co. Ltd. United Online Inc. S hutterf ly , Inc. NetDragon WebS of t, Inc. G igaMedia Ltd. S K Communications Co. , Ltd. G ungHo Online Entertainment, The9 Limited G amania Digital Entertainment NEOWIZ G ames Corporation XING A G Openw ave S y s tems Inc. CDC Corp. A ctoz S of t Co. , Ltd. DA DA S pA OA O R B C Inf ormation S y s tems G ameOn Co Ltd. Tree.Com, Inc. Y edangOnline Corp. My riad G roup A G Cy berplex Inc. K A B Dis tribution Inc. HanbitS of t, Inc. J umpTV Inc. TheS treet. c om, Inc . DigitalTow n, Inc. S park Netw orks , Inc. G eoS entric Oy j Ngi G roup Inc. Eolith Co. Ltd. Webz en Inc. A Q Interactive, Inc. Fluid Mus ic Canada, Inc. NeXplore Corporation Frogs ter Interactive Pictures Northgate Technologies Limited G ravity Co., Ltd S oc ialw is e, Inc . B ey ond Commerce, Inc. Y nk K orea Inc. DXN Holdings B hd Wiz z ard S of tw are Corporation Dolphin Digital Media, Inc. B roadWebA s ia Inc. LookS mart, Ltd. J umbuck Entertainment Pty Ltd. IA S Energy , Inc. UOMO Media, Inc Lingo Media Corporation A cceleriz e New Media, Inc. S pectrumDNA , Inc. V OIS , Inc. Quepas a Corp. Worlds .com Inc. Magnitude Inf ormation S y s tems MOK O.mobi Limited S NA P Interactive, Inc. B right Things plc Ex tens ions , Inc. CornerWorld Corporation is eemedia Inc. B etaw ave Corporation DigitalPos t Interactive, Inc. LiveWorld Inc. B igs tring Corp. Unis erve Communications Corp. A s s oc iated Media Holdings Inc. Wy nds torm Corporation The Parent Company ZipLocal Inc. China G atew ay Corporation Financial Media G roup, Inc. Total S port Online A S S NM G lobal Holdings Dibz International, Inc. S ocial Media V enures , Inc. 0 2520. 4 2401.1 2399. 7 3968.7
540. 8 372.8 343.1 326. 0 321.2 286. 8 285.1 267.7 263. 9 221. 3 200. 8 164. 4 160. 4 143. 5 124.8 108.3 104. 2 103. 0 98.0 92. 3 76. 2 75. 8 72.7 66. 1 55.5 50. 8 50. 5 46.3 44.7 41. 0 40. 4 35. 8 34.0 32.7 30.5 30.3 29.5 29.3 28. 4 25. 1 24. 4 24. 3 19.5 19.5 15. 5 14. 0 12. 9 12. 2 11. 1 9. 7 8. 7 8. 6 6. 3 5. 5 5. 2 4. 9 4. 5 4. 4 3. 9 3. 5 2. 9 2. 6 1. 9 1. 7 1. 7 0. 9 0. 7 0. 4 0. 3 0. 3 0. 2 0. 1 0. 0 0. 0 0. 0 500
1073.3 993. 2 944. 4 796.5
1572. 3 1485. 8
1931. 3 1894. 9 1850.0
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. Thirtytwo companies have multiples under 1.5x
T E V/L T M R evenue (x)
60.0
50.0
48.6 41.6
40.0 32. 7 30.0 20.8 19.20.0 18.0 2 16.1 12.6 9.69. 9 10.0 6. 67.8 A verage, 5.3 4.64.64. 74.85.65.85.8 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 20.0
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).
(x)
(x)
Germany
United
United
Japan
India 1
Canada
NasdaqGM
ASX NasdaqGS
# Companies
1
6
1
3
2
10 38 10
1
Switzerland
OTCNO TSXV
OTCBB
1
2
9
1
1
1
Hong Kong
Finland
Australia
OTCPK
GTSM
KOSE
SEHK
HLSE
XTRA
AMEX
KLSE
Malaysia
Taiwan
Norway
Sweden
OSE
TSE
TSX
SWX
RTS
BSE
AIM
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
Russia 1
China
OM
CM
South
Italy
LiveWorld Inc. S handa Interactive E ntertainment AQ Interac tive, Inc. Unis erve C ommunications C orp. T he P arent C ompany Northgate T ec hnologies Limited P erfec t World C o., Ltd. IAC /InterActiveC orp. T ree.C om, Inc . C DC C orp. O penwave S y s tems Inc. DXN Holdings B hd G ameO n C o L td. ZipL oc al Inc. J umbuc k E ntertainment P ty L td. DADA S pA S park Network s , Inc. U nited O nline Inc . S NAP Interac tive, Inc . S NM G lobal Holdings HanbitS oft, Inc. K AB Dis tribution Inc. C y berplex Inc. NE O WIZ G ames C orporation G igaMedia L td. Modern T imes G roup Mtg AB S hutterfly , Inc. Ac toz S oft C o., Ltd. V alueC lick Inc. is eemedia Inc. S K C ommunic ations C o. , L td. G amania Digital E ntertainment C o., Y edangO nline C orp. NetDragon WebS oft, Inc. G ungHo O nline E ntertainment, Inc . Y nk K orea Inc. O pen T ex t C orp. My riad G roup AG XING AG E olith C o. L td. J umpT V Inc . MO K O .mobi Limited Ac c eleriz e New Media, Inc. C ornerWorld C orporation T otal S port O nline AS Wiz z ard S oftware C orporation S ohu. com Inc. B ey ond C ommerc e, Inc . F luid Mus ic C anada, Inc . K ings oft C o. Ltd. DigitalP os t Interac tive, Inc . Mix i, Inc. G eoS entric O y j F rogs ter Interactive P ic tures AG C hangy ou.c om Limited L ingo Media C orporation B right T hings plc C hines e G amer International As s oc iated Media Holdings Inc. T enc ent Holdings L td. UO MO Media, Inc Dolphin Digital Media, Inc . B igs tring C orp. G ree, Inc.
Average TEV/LTM Revenue - By Exchange
18.0 16.1 16.0 14.3 14.0 12.0 11.2 10.0 10.0 9.4 7.8 8.0 6.0 6.4 4.6 3.83.4 4.0 2.9 2.8 2.7 2.4 2.1 1.9 1.4 2.0 2.0 0.8 0.5 0.3 0.2 0.0 0.0
Average TEV/LTM Revenue - By Country
18.0 16.1 16.0 14.0 12.0 9.7 10.0 8.0 6.0 4.0 2.0 0.0 7.8 7.1 6.4 6.2 5.7 4.9
4.6 2.7 2.1 1.9 1.4 0.8 0.5 0.5 0.3 0.0
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 40. 0 35. 0 30. 0 25. 0 20. 0 15. 0 A verage, 9. 9 10. 0 5. 0 0. 3 0. 0 S handa Interac tive E ntertainment Ltd. T heS treet. com, Inc . Ngi G roup Inc . P erfect World C o., Ltd. 0. 5 0. 5 0. 8 2. 0 2. 6 J umbuck E ntertainment P ty L td. G ameO n C o Ltd. 2. 8 3. 7 3. 8 4. 4 4. 7 4. 9 5. 6 5. 8 5. 9 6. 7 8.4 9.0 9.6 12.1 12.2 10.8 11.7 9.8 10. 0 10. 2 10.7 13. 4 14. 3 18. 5 16. 4 23. 5 27. 5 32. 1 41. 6
NE O WIZ G ames C orporation
G amania Digital E ntertainment C o. , L td.
G ungHo O nline E ntertainment, Inc.
S K C ommunic ations C o. , Ltd.
Modern T imes G roup Mtg AB
C hines e G amer International
0.0 Switzerland 1
C hangy ou. com Limited
DXN H oldings B hd
S NAP Interactive, Inc .
United O nline Inc .
C DC C orp.
AQ Interac tive, Inc .
O pen T ex t C orp.
IAC /InterAc tiveC orp.
S ohu. com Inc .
NetDragon WebS oft, Inc .
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
25.0 21.9 20.0 20.6 15.0 (x) 10.0 5.0 GTSM 0.0
(x) 25.0 21.9 20.0
Average TEV/LTM EBITDA - By Country
14.5 13.4
15.0
14.5 12.8 10.6 10.2 9.0 7.6
10.910.2 9.0 8.0
6.1 5.6
10.0
4.4 3.8 3.7 2.0 0.8 OTCBB NasdaqGM AMEX KLSE ASX
6.4 5.8 5.6 3.8 2.0 0.2 Russia
0.2 0.0 RTS SWX
5.0 0.0 Germany Japan Hong Kong Canada United States China
KOSE
OSE
SEHK
NasdaqGS
TSE
OM
TSX
XTRA
CM
Malaysia
Taiwan
South Korea
Italy
# 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
Australia
Sweden
2
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.
T enc ent H oldings Ltd.
S park Network s , Inc .
V alueC lick Inc .
C y berplex Inc .
XING AG
Mix i, Inc .
K AB Dis tribution Inc .
Y edangO nline C orp.
Ac toz S oft C o., L td.
K ings oft C o. Ltd.
Y nk K orea Inc .
S hutterfly , Inc .
DADA S pA
Page 16
P /E L T M (x)
60.0 52.8 50.0 41.0 41.5 40.0 30.1 28.5 29.5 24.2 24.7 20.4 20.9 20.0 A verage, 17.9 9.2 12.7 12.9 11.2 12.3 14.2 15.6 16.4 17.9 47.0
30.0
10.0 2.0 0.0 G iant Interactive G roup, Inc. S handa Interactive E ntertainment Ltd. Neteas e.com Inc. P erfect World C o., Ltd. 2.5 2.7 3.1 4.2
5.5
6.2
7.4
G amania Digital E ntertainment C o., Ltd.
J umbuck E ntertainment P ty Ltd.
NE O WIZ G ames C orporation
Modern T imes G roup Mtg AB
C hines e G amer International
DXN H oldings B hd
C hangy ou.com Limited
G ameO n C o Ltd.
S NAP Interactive, Inc.
IAC /InterActiveC orp.
O pen T ex t C orp.
NetDragon WebS oft, Inc.
Figure 23. P/E Ranking 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
40.0 35.0 30.0 25.0 (x) 20.0 15.0 10.0 5.0 OTCBB GTSM 0.0 TSE KOSE SEHK NasdaqGS XTRA AMEX TSX OM CM ASX 35.0 29.9
35.0 30.0 29.9 27.7
Average P/E - By Country
27.7
25.0
21.8 20.9 15.6 11.5 9.2 6.2 5.5
(x)
24.2 24.2
20.0 15.0 10.0
24.2 21.8
21.1 20.9
19.7 12.5 6.2 5.5
4.2 KLSE
2.0 0.0 NYSE SWX
5.0 0.0 Germany United States Australia Japan Canada Taiwan South Korea China Italy
4.2 0.0 Malaysia Switzerland 1
# 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
Sweden
1
1
Figures 24 & 25. P/E Ranking (Exchange, Country) Source. Capital IQ
T encent H oldings Ltd.
Worlds .com Inc.
G igaMedia Ltd.
C y berplex Inc.
S ohu.com Inc.
S park Network s , Inc.
Y edangO nline C orp.
K ings oft C o. Ltd.
XING AG
DADA S pA
Actoz S oft C o., Ltd.
Mix i, Inc.
Page 17
C omparable C ompany Analys is > W eb 2 .0
P ric e P erforman c e
C ompa ny Na me Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C D C C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D AD A S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid M us ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B D is tribution Inc. K ings oft Co. Ltd. Lingo M edia Corporation Live World Inc. LookS mart, Ltd. M agnitude Information S ys tems Inc. M ixi, Inc. M ode rn Times G roup Mtg AB M OK O.mobi L imited M yriad G roup AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommunications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge M edian C ur rency US D KR W JPY US D US D US D US D GBP US D US D US D US D TWD US D C AD E UR MY R US D US D US D US D KR W US D US D C AD E UR TWD JPY E UR US D US D US D JPY JPY KR W US D US D C AD AU D C AD C AD HKD C AD US D US D US D JPY SE K AU D C HF KR W HKD US D US D JPY IN R US D US D US D US D US D US D US D KR W US D US D US D US D US D US D US D HKD US D US D US D N OK US D C AD US D US D US D US D US D US D US D US D E UR KR W KR W C AD T ic ker A CL Z A 052 790 3 838 A S MH B S GC B W AV B Y OC A IM:B G T B W BA C H IN .A C Y OU C GW Y G TS M:3 083 CWR L T S X:CX C M:DA D XN D IB Z DGL P DGT W DPDM A 041 060 E XT I F NGP T S X:F MN FR G 6 180 3 812 G E O1V GA G IG M G RV Y T S E :36 32 3 765 A 047 080 I ACI I AS C .A IEE A S X:J M B T S X:J T V T S X:K AB 3 888 T S XV :LM L VW D L OOK M AG Y 2 121 MT G B MKB MYR N A 095 660 7 77 NT E S N XP C 2 497 5 900 57 O TE X O PW V P W RD Q PS A R BC I S ND A S F LY A 066 270 S T VI S NMN S MV I S CL W S OH U L OV S P XA 7 00 K IDS .Q NC T Y T S CM T OS O TR EE T S XV :U S S UNT D U OM O V CL K V OIS W ZE N W ZE W DDD W YND O 1B C A 052 770 A 023 770 T S XV :ZIP E x change OT C B B KO SE TSE OT C P K OT C B B OT C B B OT C B B AI M OT C P K N as da qG S N as da qG S OT C P K GT S M OT C B B TSX CM KL SE OT C P K OT C B B OT C B B OT C B B KO SE OT C P K OT C B B TSX XT R A GT S M TSE H LS E NYS E N as da qG S N as da qG M TSE OS E KO SE N as da qG S OT C B B T S XV AS X TSX TSX S E HK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX KO SE S E HK N as da qG S OT C P K TSE BS E N as da qG S N as da qG S N as da qG S OT C P K R TS N as da qG S N as da qG S KO SE OT C B B OT C P K OT C P K OT C B B N as da qG S AME X OT C B B S E HK OT C P K N as da qG S N as da qG M OT C N O N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C P K XT R A KO SE KO SE T S XV US D Ma rket C ap ($m) 1 1.1 16 0.4 4 0.4 0 .9 1 .7 2 .9 2 9.3 4 .5 1 9.5 16 4.4 2,3 99. 7 0 .3 1,0 73. 3 3 .9 9 2.3 14 3.5 2 5.1 0 .0 2 .6 5 5.5 2 4.3 4 4.7 4 .4 0 .2 3 5.8 3 2.7 26 7.7 10 8.3 5 0.5 1,8 94. 9 32 6.0 3 0.3 1,5 72. 3 28 6.8 7 5.8 2,4 01. 1 1 4.0 3 .5 1 5.5 7 2.7 7 6.2 79 6.5 1 2.2 1 .9 1 9.5 5 .5 94 4.4 1,8 50. 0 5 .2 9 8.0 26 3.9 34 3.1 4,5 40. 6 3 4.0 4 6.3 3 0.5 1,9 31. 3 20 0.8 1,4 85. 8 8 .6 12 4.8 3,9 68. 7 37 2.8 32 1.2 4 .9 0 .0 0 .0 2 9.5 2,5 20. 4 5 0.8 9 .7 22, 011 .2 0 .4 28 5.1 6 6.1 0 .1 10 4.2 1 .7 54 0.8 1 2.9 99 3.2 8 .7 4 1.0 2 4.4 6 .3 0 .7 22 1.3 10 3.0 2 8.4 0 .3 C urrent Pric e 0.4 0 2 4,00 0.0 0 7 1,20 0.0 0 0.0 2 0.0 3 0.1 0 0.6 5 0.0 1 0.2 3 1.5 5 4 3.6 3 0.0 2 42 0.0 0 0.0 6 1.6 5 6.3 0 0.3 9 0.0 0 0.0 4 2.0 5 0.4 7 79 0.0 0 0.1 0 0.0 0 0.7 9 9.9 0 5 8.0 0 10 7,40 0.0 0 0.0 4 8.3 9 5.9 8 1.0 9 6,75 0.0 0 24 0,10 0.0 0 4,43 0.0 0 1 5.9 1 0.2 0 0.0 8 0.3 9 0.7 4 0.6 3 5.6 9 1.1 0 0.0 6 1.1 4 0.0 1 58 9,00 0.0 0 21 7.0 0 0.0 8 4.9 9 3 2,10 0.0 0 5.0 3 3 6.9 0 0.6 1 3 5,90 0.0 0 4 2.0 5 3 6.7 0 2.4 1 3 0.5 5 0.6 8 0.9 0 5 7.2 0 1 4.8 1 9,81 0.0 0 0.4 5 0.0 1 0.0 1 0.6 8 6 5.8 7 2.4 7 0.2 0 9 4.5 5 0.0 2 1 0.6 3 2.1 6 0.0 3 9.6 5 0.0 8 6.4 7 0.1 5 1 1.4 2 1.0 5 3.4 6 0.5 1 0.1 2 0.0 4 2 9.8 8 8,40 0.0 0 6,80 0.0 0 0.0 1 1 Wk 14.3 % -14. 3% -5.3 % 1 233 .3% 10.3 % 25.0 % -20. 7% -8.3 % -22. 8% 11.5 % 23.3 % -25. 0% 23.7 % -14. 3% -0.6 % 7.7 % 1.3 % -90. 0% 25.0 % -17. 7% -6.0 % -3.7 % -33. 3% -10. 0% 25.4 % 24.5 % 7.4 % -7.7 % 0.0 % 4.9 % 7.4 % -1.8 % -5.9 % 2.6 % -3.7 % -0.3 % -13. 0% 33.3 % -7.1 % 15.6 % 0.0 % 9.4 % 0.0 % -40. 0% -13. 6% 0.0 % 12.6 % 13.3 % 15.4 % -0.2 % -6.3 % -2.5 % 9.2 % -12. 9% -2.6 % 12.7 % 4.9 % 18.7 % 5.6 % 0.0 % -10. 0% 10.4 % 13.6 % -15. 8% -30. 8% 3 66. 7% 0.0 % -2.9 % 7.6 % 3.8 % -13. 0% 6.4 % -40. 0% 0.9 % -2.3 % 0.0 % 7.6 % 14.3 % 7.7 % -4.5 % 8.1 % 2 00. 0% -7.5 % -20. 3% 20.0 % 14.3 % -0.4 % -4.7 % 7.1 % 0.0 % 1 233 .3% -90. 0% 19.4% 0.0 % 1 Mth 0.0% 4.8% -8.7 % 12 33. 3% 4 5.5 % 0.0% -26. 1% -16. 7% -22. 8% -6.1 % 3 2.6 % 6 50.0 % 1 1.6 % -33. 3% 1.9% 7.1% 1.3% -90. 0% 7 5.0 % 5 7.7 % -21. 7% 6.8% -33. 3% -32. 5% 5.3% 3 2.0 % -1.0 % -5.5 % -20. 0% 1 2.0 % -1.2 % -7.6 % 1 4.8 % 1 3.8 % -12. 6% -1.8 % -13. 0% -11. 1% -13. 3% -8.6 % 5.0% 1 1.1 % 4.8% -25. 0% -11. 6% 2 0.0 % 2 9.7 % -2.3 % 7.1% -8.4 % -13. 4% -6.0 % 6.7% -12. 9% 5.1% -6.2 % 4.2% 3 6.9 % 4 4.2 % -33. 3% -28. 0% -0.7 % 3.6% -15. 1% -43. 0% 1 80.0 % 0.0% -2.9 % 4.5% 7.9% -45. 9% 9.4% 0.0% 1 6.3 % 1 1.9 % 0.0% -17. 0% 6 0.0 % 1.1% -28. 2% 3.3% 2 00.0 % -25. 9% -5.6 % -20. 0% -92. 2% -10. 8% -17. 2% -8.1 % 0.0% 12 33. 3% -92. 2% 22.4% -0.4 % 3 Mth 73 .9% 11 9.2% 81 .2% 132 8.6 % 11 3.3% -4 2.9% 14 .0% 10 .0% -5 4.9% 40 .9% NM 65 0.0% 13 4.0% -5 7.1% 96 .4% 31 .5% 30 .5% -9 0.0% 75 .0% -1 8.0% -2 4.8% 53 .4% -3 3.3% -7 0.0% 97 .5% 49 .8% 74 .2% 16 .4% 33 .3% 23 .4% 8 .3% 70 .3% 24 .3% 89 .2% 37 .2% 4 .5% 34 4.4% -1 1.1% -2 2.0% 19 .4% 46 .5% 76 .2% 22 .2% -5 3.8% 11 .8% -2 0.0% 58 .8% 54 .7% 50 .0% 24 .8% 39 .6% 22 .1% 37 .4% 1 .7% 68 .5% 23 .7% 6 .6% 14 8.5% 11 7.4% -3 4.6% 10 4.5% 44 .7% 58 .1% 30 .6% -4 0.0% 60 0.0% -9 9.2% 70 .0% 59 .5% 9 .8% 5 .3% 64 .7% -2 5.0% -2 1.2% 5 .9% -2 5.0% 11 2.1% 10 0.0% 45 .1% 87 .5% 34 .2% 35 6.5% 87 .0% 8 .5% -3 3.3% -6 6.7% 3 .4% 0 .5% 82 .8% -6 6.7% 132 8.6 % -9 9.2% 63.1% 31 .5% 6 Mth 14 .3% 13 5.3% 14 2.2% 56 6.7% 11 3.3% -5 4.5 % -2 7.8 % 10 .0% -7 7.2 % 34 .8% NM 65 0.0% 34 4.4% -8 7.2 % 38 5.3% -6.9% 10 .0% -9 8.0 % 11 8.8% -2 4.1 % -4 1.3 % 41 .1% -4.8% -9 3.3 % 22 9.2% 67 .8% 16 6.1% -1 2.4 % 33 .3% 29 .3% 6 .2% 10 5.7% 25 .5% 13 8.4% 30 .3% 1 .1% 56 6.7% 23 .1% 0 .0% 76 .2% 80 .0% 12 0.5% -7.6% 10 0.0% -2 5.9 % -2 0.0 % 7 .7% 28 .8% 25 .0% -1 3.2 % 22 3.4% 73 .4% 67 .0% -3 9.0 % -2 9.6 % -3 4.0 % 21 .8% 27 0.8% 77 .1% -5 9.3 % 80 .0% 76 .8% 11 1.9% 80 .0% -3 5.7 % -3 0.0 % -9 9.1 % -1 9.0 % 39 .1% -3.9% 33 .3% 89 .1% -7 0.0 % -2 0.2 % -2 5.5 % -4 0.0 % 34 8.8% 10 0.0% 6 .6% 15 0.0% 67 .0% 16 2.5% 28 8.8% -4 0.7 % -3 6.8 % -6 6.7 % 10 .7% 36 .4% 51 .1% 0 .0% 65 0.0% -9 9.1 % 63.5% 25 .5% 1 Yr -46 .7% 2 12. 5% -46 .1% NM -77 .1% -70 .6% -80 .1% -41 .5% -84 .7% -33 .5% NM -50 .0% 3 80. 0% -85 .4% 1 50. 0% -46 .6% -1. 3% -98 .0% -68 .2% -40 .6% NM 7.5 % NM -99 .7% -56 .1% 1 03. 3% 94.6 % -17 .4% -33 .3% -24 .6% -44 .2% -5. 2% NM 5.8 % 50.4 % -56 .0% 11.7 % -66 .7% -36 .1% -7. 5% -26 .7% 51.3 % -39 .9% -78 .6% -72 .0% -53 .1% -14 .9% -35 .2% 50.0 % -50 .1% 1 67. 5% -48 .7% 73.5 % -23 .8% -66 .1% -86 .0% 19.5 % 97.5 % 16.3 % -69 .8% -90 .0% 1 30. 0% 28.0 % -25 .7% -34 .8% -99 .5% NM -66 .8% -10 .3% -39 .9% NM 57.6 % -99 .0% -54 .7% -66 .5% -70 .0% NM -70 .4% -35 .4% -58 .3% -23 .9% -78 .1% 14.9 % -67 .9% -70 .0% -88 .6% -6. 7% -28 .5% -43 .3% -95 .5% 3 80. 0% -99 .7% -19.3% -40 .2% 52 We ek -46. 7% -33. 3% -59. 3% -60. 0% -84. 0% -75. 0% -80. 3% -45. 0% -92. 1% -51. 1% -5.0 % -57. 1% -6.7 % -92. 4% -17. 1% -51. 6% -18. 1% -98. 0% -79. 3% -66. 4% -58. 4% -31. 9% -90. 1% -99. 7% -60. 5% 3.1 % -7.5 % -34. 3% -42. 9% -31. 5% -55. 6% -45. 2% -11. 9% -14. 2% -33. 3% -68. 5% -42. 9% -74. 2% -37. 1% -42. 2% -33. 7% -4.7 % -43. 0% -81. 3% -72. 9% -60. 0% -36. 0% -44. 4% -25. 0% -51. 3% -23. 6% -52. 5% -4.7 % -57. 9% -71. 8% -88. 8% -6.1 % -2.4 % -9.9 % -80. 3% -90. 1% -12. 0% -2.9 % -44. 1% -58. 3% -99. 6% -99. 8% -76. 0% -25. 1% -44. 6% -66. 7% -1.3 % -99. 5% -62. 7% -70. 6% -70. 0% -26. 2% -73. 3% -47. 2% -85. 8% -27. 5% -81. 3% -26. 1% -74. 5% -70. 0% -93. 3% -17. 0% -32. 3% -51. 6% -95. 7% 3.1 % -99. 8% -50.8% -51. 5%
622.7
Figure 26. Price Performance Source. Capital IQ
Page 18
C omparable C ompany A nalys is > W eb 2.0
V aluatio n Multiples C om pany Nam e
Acce le rize N ew Me dia, Inc. Actoz S of t C o., L td. AQ Inte ractive , Inc. As s ocia ted Media H oldings Inc. B igstring Corp. B e tawave Corpora tion B e yond Commerce, Inc. B right T hings plc B roa dW ebAs ia Inc. C DC C orp. C ha ngyou. com Limite d C hina G ate wa y C orpora tion C hine s e G amer International C ornerW orld C orporation C yberplex Inc. D AD A S pA D XN Holdings B hd D ibz Inte rnational, Inc. D igitalP ost Inte ra ctive , Inc. D igitalT own, Inc. D olphin D igital Me dia, Inc. E olith C o. L td. E xte ns ions , Inc. F inancia l Media G roup, Inc. F luid Mus ic Ca nada, Inc. F rogs te r Interactive P icture s AG G a ma nia D igital E ntertainment C o., L td. G a me On C o L td. G e oS e ntric O yj G iant Intera ctive G roup, Inc. G iga Media Ltd. G ravity C o., L td G ree, Inc. G ungH o O nline E ntertainment, Inc. H anbitS of t, Inc. IAC /InterActiveC orp. IAS E nergy, Inc. is ee media Inc. J umbuck E ntertainment P ty Ltd. J umpT V Inc. K A B D is tribu tion Inc. K ings oft Co. Ltd. Lingo M edia Corporation Live World Inc. LookS mart, Ltd. Magnitu de Information S ys tems Inc. Mixi, Inc. Mode rn Times G rou p Mtg AB MOK O.mobi L imited Myriad G roup AG N E OW IZ G ames C orpora tion N etD ragon W ebS oft, Inc. N ete as e.com I nc. N eXplore Corpora tion N gi G roup Inc. N orthgate Te chnologies L imited Open T e xt Corp. Openwave S ys tems Inc. P e rf ect W orld C o., Ltd. Quepa s a C orp. OA O R B C Information S ys tems S handa Interactive E ntertainme nt L td. S hutte rf ly, Inc. S K C ommunications Co., Ltd. S N AP Inte ra ctive , Inc. S N M G lobal H oldings S ocia l Media V e nures , Inc. S ocia lwis e, Inc. S ohu. com Inc. S park N etworks , Inc. S pectrumDN A, Inc. T encent Holdings L td. T he P arent C ompany T he 9 L imited T he S treet.com, Inc. T otal S port Online A S T ree.C om, Inc. U nis erve C ommu nications Corp. U nited Online Inc. U OMO Media , Inc V a lueC lick Inc. V O IS , Inc. W ebze n Inc. W izza rd S of twa re Corpora tion W orlds .com Inc. W ynds torm C orporation XIN G AG Y e dangOnline Corp. Y nk K orea Inc. ZipLocal Inc. H igh Low A vera ge Median
S ec to r
D irect Marketing G aming G aming Mobile Ins ta nt M es s aging Me dia S ocia l Ne tworking S ocia l Ne tworking S ocia l Ne tworking G aming G aming Mobile G aming C ontent Advertis ing S ocia l Ne tworking S ocia l Ne tworking S N S A pps C ontent S ocia l Ne tworking S ocia l Ne tworking G aming C ontent D irect Marketing Me dia G aming G aming G aming Mobile G aming G aming G aming S ocia l Ne tworking Me dia G aming Me dia V ide o C ontent S ocia l Ne tworking V ide o C ontent G aming Le arning S ocia l Ne tworking D irect Marketing S ocia l Ne tworking S ocia l Ne tworking Me dia S ocia l Ne tworking Mobile G aming G aming G aming C ontent Me dia D irect Marketing C ollaboration Mobile G aming S ocia l Ne tworking Me dia G aming D igital Imaging S e arch D ating Me dia S ocia l Ne tworking S ocia l Ne tworking G aming S ocia l Ne tworking Me dia P orta l Me dia G aming Me dia Me dia P orta l S ocia l Ne tworking Me dia Me dia Me dia S ocia l Ne tworking G aming P odcas ting C ontent C ontent S ocia l Ne tworking G aming G aming D irectory
Co untry
U nite d S tates S outh K ore a J a pan U nite d S tates U nite d S tates U nite d S tates U nite d S tates U nite d K ingdom U nite d S tates H ong K ong C hina U nite d S tates T a iwan U nite d S tates C anada Italy Malays ia U nite d S tates U nite d S tates U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany T a iwan J a pan F inland C hina T a iwan S outh K ore a J a pan J a pan S outh K ore a U nite d S tates C anada C anada A us tralia C anada C anada C hina C anada U nite d S tates U nite d S tates U nite d S tates J a pan S we den A us tralia S witz erland S outh K ore a C hina C hina U nite d S tates J a pan India C anada U nite d S tates C hina U nite d S tates R us s ia C hina U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates U nite d S tates C hina U nite d S tates U nite d S tates C hina U nite d S tates C hina U nite d S tates N orway U nite d S tates C anada U nite d S tates C anada U nite d S tates U nite d S tates S outh K ore a U nite d S tates U nite d S tates U nite d S tates G ermany S outh K ore a S outh K ore a C anada
P rimary E xc h ange
OT C B B K OS E TSE OT C P K OT C B B OT C B B OT C B B AIM OT C P K N as da qG S N as da qG S OT C P K GTSM OT C B B TSX CM KLSE OT C P K OT C B B OT C B B OT C B B K OS E OT C P K OT C B B TSX XT R A GTSM TSE H LS E NYS E N as da qG S N as da qG M TSE OS E K OS E N as da qG S OT C B B T S XV AS X TSX TSX S EHK T S XV OT C P K N as da qG M OT C B B TSE OM AS X SWX K OS E S EHK N as da qG S OT C P K TSE BSE N as da qG S N as da qG S N as da qG S OT C P K R TS N as da qG S N as da qG S K OS E OT C B B OT C P K OT C P K OT C B B N as da qG S AME X OT C B B S EHK OT C P K N as da qG S N as da qG M OT C NO N as da qG M T S XV N as da qG S OT C B B N as da qG S OT C B B N as da qG M AME X OT C B B OT C P K XT R A K OS E K OS E T S XV
Tic ker
AC LZ A 052 790 3 838 AS MH BS G C B WA V BYO C AIM :B G T B WB A C HIN .A CY OU CG W Y G T S M:308 3 CWR L T S X:C X CM:DA D XN D IB Z DGL P D G TW DP DM A 041 060 E XT I F NGP T S X:F MN FRG 6 180 3 812 G E O1V GA G IG M GR VY T S E :3 632 3 765 A 047 080 IAC I IA S C .A IE E AS X:J MB T S X:J T V TS X:K AB 3 888 TS XV :LM LV W D L OOK MAG Y 2 121 MT G B MK B MY R N A 095 660 777 NT E S N XP C 2 497 59 005 7 O TE X OP W V PW R D QP S A R B CI S NDA S FL Y A 066 270 S T VI S N MN S MV I S CL W S OH U L OV S P XA 700 K ID S .Q NC T Y TSCM T OS O TR E E T S XV :U S S U N TD U OMO V C LK V OIS W ZE N W ZE W DD D W YND O 1B C A 052 770 A 023 770 T S XV :ZIP
US D Market Cap ($m)
11. 1 1 60. 4 40. 4 0. 9 1. 7 2. 9 29. 3 4. 5 19. 5 1 64. 4 2,3 99. 7 0. 3 1,0 73. 3 3. 9 92. 3 1 43. 5 25. 1 0. 0 2. 6 55. 5 24. 3 44. 7 4. 4 0. 2 35. 8 32. 7 2 67. 7 1 08. 3 50. 5 1,8 94. 9 3 26. 0 30. 3 1,5 72. 3 2 86. 8 75. 8 2,4 01. 1 14. 0 3. 5 15. 5 72. 7 76. 2 7 96. 5 12. 2 1. 9 19. 5 5. 5 9 44. 4 1,8 50. 0 5. 2 98. 0 2 63. 9 3 43. 1 4,5 40. 6 34. 0 46. 3 30. 5 1,9 31. 3 2 00. 8 1,4 85. 8 8. 6 1 24. 8 3,9 68. 7 3 72. 8 3 21. 2 4. 9 0. 0 0. 0 29. 5 2,5 20. 4 50. 8 9. 7 22,0 11. 2 0. 4 2 85. 1 66. 1 0. 1 1 04. 2 1. 7 5 40. 8 12. 9 9 93. 2 8. 7 41. 0 24. 4 6. 3 0. 7 2 21. 3 1 03. 0 28. 4 0. 3 22,0 11. 2 0. 0 622. 7 40. 7
TE V/LT M R evenue
3.9 x 1.5 x 0.2 x 19.2 x 41.6 x 4.8 x 16.1 x 0.5 x 9.9 x 0.0 x 18.0 x 4.1 x 1.3 x 0.8 x 0.5 x 5.8 x 32.7 x 3.2 x 5.6 x 9.6 x 1.9 x 0.6 x 7.8 x 1.4 x 48.6 x 2.4 x 1.1 x 0.4 x 1.8 x 0.7 x 3.5 x 1.1 x 5.8 x 12.6 x 0.1 x 6.6 x 1.4 x 3.5 x 2.7 x 1.3 x 2.3 x 0.1 x 0.3 x 2.6 x 0.5 x 0.3 x 0.0 x 0.2 x 1.4 x 1.8 x 1.0 x 1.1 x 0.0 x 4.7 x 0.9 x 20.0 x 0.2 x 0.0 x 4.6 x 0.4 x 0.2 x 1.0 x 20.8 x 1.5 x 4.6 x 3.2 x 2.1 x 2.5 x 0.6 x 48.6 x 0.0 x 5.3x 1.8 x
TE V/ N TM R evenue
0.5x 7.7x 0.9x 4.7x 1.3x 0.4x 1.1x 1.3x 2.4x 0.5x 1.3x 0.8x 4.1x 0.0x 0.4x 0.8x 1.6x 7.7x 0.0x 1.8x 1.1x
TE V/LT M E BITDA
6.7 x 2.8 x 5.8 x 16.4 x 32.1 x 12.2 x 5.6 x 3.8 x 11.7 x 2.6 x 13.4 x 12.1 x 2.0 x 9.6 x 14.3 x 18.5 x 9.0 x 4.9 x 5.9 x 0.5 x 10.0 x 0.5 x 0.2 x 0.3 x 10.8 x 27.5 x 3.7 x 10.7 x 4.4 x 41.6 x 0.8 x 4.7 x 8.4 x 10.2 x 9.8 x 23.5 x 41.6 x 0.2 x 9.9x 8.7 x
TE V/N TM E BITDA
6.2x 8.0x 6.4x 3.3x 5.9x 1 0.9 x 8.7x 5.7x 2.6x 1.9x 8.3x 9.3x 5.0x 3.4x 6.5x 1 0.9 x 1.9x 6.1x 6.2x
P /LT M E P S
24 .7x 16 .4x 41 .5x 9. 2x 24 .2x 4. 2x 28 .5x 12 .7x 2. 0x 12 .9x 20 .4x 6. 2x 17 .9x 47 .0x 5. 5x 29 .5x 12 .3x 2. 7x 30 .1x 2. 5x 3. 1x 7. 4x 14 .2x 15 .6x 52 .8x 0. 8x 41 .0x 20 .9x 11 .2x 52 .8x 0. 8x 17.9x 14 .2x
P /NT M E PS
1 1.2 x 1 5.7 x 1 0.8 x 1 3.9 x 1 2.0 x 3 1.4 x 1 1.6 x 1 6.7 x 1 4.0 x 3 8.3 x 1 1.5 x 1 6.0 x 1 8.1 x 1 4.6 x 1 7.8 x 1 8.1 x 3 8.3 x 1 0.8 x 17.0x 1 5.1 x
P /TangBV
2 .8x 0 .6x 0 .4x 1 4.9x 1 5.6x 9 .2x 0 .5x 4 .3x 3 .6x 4 .9x 3 .5x 1 .4x 8 .6x 0 .4x 2 .8x 1 9.6x 4 0.8x 2 .3x 1 .1x 3 .1x 1 .6x 4 .4x 4 .3x 1 2.8x 0 .8x 0 .7x 7 .0x 3 .9x 4 .4x 1 4.9x 1 .9x 0 .8x 1 .0x 2 .9x 1 .0x 1 .2x 2 .2x 2 .9x 3 8.3x 6 .8x 2 5.5x 2 2.1x 0 .1x 0 .9x 1 .4x 8 .1x 3 0.4x 0 .0x 7 .0x 3 .9x 1 .5x 4 0.8x 0 .0x 7.0x 3 .1x
Figure 27. Valuation Comparison Source. Capital IQ
Page 19
C omparable C ompany A nalys is > W eb 2.0
Su mmary b y C ountry
C om pany Nam e U nited S ta tes C a na da C hina S outh K orea J a pa n T a iwan A ustra lia G erma ny S witz erla nd H ong K ong F inla nd I ta ly U nited K ingdom I ndia S weden R us sia M a la ys ia N orwa y G rand To tal 38 10 10 9 6 3 2 2 1 1 1 1 1 1 1 1 1 1 90 U S D Market Cap ($m) C hina U nited S ta tes J a pa n C a na da S weden T a iwa n S outh K orea G erma ny H ong K ong I ta ly R uss ia S witz erla nd F inla nd I ndia M a la ys ia Aus tra lia U nited K ingdom N orwa y G rand T otal 40, 246.0 5, 076.1 2, 998.5 2, 217.2 1, 850.0 1, 667.0 1, 068.7 254.0 164.4 143.5 124.8 98.0 50.5 30.5 25.1 20.8 4.5 0.1 56,039.7 Avg US D Market C ap ($m) China S weden Ta iwa n Ja pa n Ca na da Hong K ong Ita ly United S ta tes G erma ny R us sia S outh K orea S witzerla nd Finla nd India Ma la y sia Austra lia United K ingdom Norwa y G rand To tal 4,024. 6 1,850. 0 555. 7 499. 7 221. 7 164. 4 143. 5 133. 6 127. 0 124. 8 118. 7 98. 0 50. 5 30. 5 25. 1 10. 4 4. 5 0. 1 622. 7 U S D LT M T otal R ev ($m) C hina U nited S ta tes S weden C a na da S outh K orea J a pa n H ong K ong T a iwa n I ta ly R uss ia I ndia M a la ys ia G erma ny S witz erla nd Aus tra l ia F inla nd N orwa y U nited K ingdom G rand T otal 3, 839. 0 3, 795. 5 1, 741. 6 970. 3 657. 1 497. 1 389. 9 365. 6 236. 1 151. 8 116. 5 78. 1 56. 4 40. 0 15. 6 5. 9 2. 1 0. 3 12,959. 0 U S D LT M To tal E B IT DA ($m) C hina S weden U nited S ta tes C a na da J a pa n S outh K orea T a iwa n I ta ly H ong K ong R uss ia M a la ys ia G ermany Aus tra lia S witz erla nd N orwa y U nited K ingdom F inla nd I ndia G rand T otal 1,773. 8 266. 8 245. 7 193. 6 108. 2 85. 0 52. 4 34. 5 30. 8 19. 8 10. 7 10. 5 3. 0 0. 8 -1. 1 -1. 9 -15. 4 -27. 3 2,789. 8 E B IT DA % C hina Aus tra l ia T a iwa n G erma ny J apa n S weden I taly M a la ys ia R uss ia H ong K ong S outh K orea S witz erla nd U nited S ta tes I ndia C a na da N orwa y U nited K ingdom F inla nd G rand T otal 47. 9% 37. 2% 36. 3% 31. 2% 21. 9% 15. 3% 14. 6% 13. 7% 13. 1% 7.9% 6.0% 1.9% -10.1% -23.5% -24.8% -50.6% #DI V /0! #DI V /0! 6.7%
Figure 28. Comparison by Country Source. Capital IQ
C omparable C ompany A nalys is > W eb 2.0
Su mmary b y Ex c hange
C om pany Nam e OT C B B N a s da qG S OT C P K K OS E TSE N a s da qG M TSX T S XV S E HK A ME X ASX XT R A GT S M S WX H LS E CM B SE NYS E OS E A IM OM R TS K LS E O T C NO G rand To tal 17 14 12 7 5 5 4 4 3 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 90 U S D Market Cap ($m) S E HK N a sda qG S TSE NYS E OM GT SM K OS E OS E TSX N a sda qG M XT R A O T CB B CM R TS SWX AM E X O T CP K H LS E BSE K LS E AS X T S XV AI M O T CN O G rand T otal 23, 150.8 22, 130.6 2, 711.6 1, 894.9 1, 850.0 1, 341.0 997.4 286.8 277.0 261.1 254.0 222.9 143.5 124.8 98.0 75.2 70.7 50.5 30.5 25.1 20.8 17.8 4.5 0.1 56,039.7 Avg US D Market C ap ($m) S E HK NY S E OM Na s da qG S G TS M TS E OS E CM K OS E XT R A RT S SWX TS X Na s da qG M HL S E AME X BS E K LS E O TC B B AS X O TC P K TS X V AIM O TC NO G rand To tal 7,716. 9 1,894. 9 1,850. 0 1,580. 8 670. 5 542. 3 286. 8 143. 5 142. 5 127. 0 124. 8 98. 0 69. 3 52. 2 50. 5 37. 6 30. 5 25. 1 13. 1 10. 4 5. 9 4. 5 4. 5 0. 1 622.7 U S D LT M T otal R ev ($m) OM N a sda qG S S E HK CM NYS E R TS BSE OS E GTSM K OS E N a sda qG M K LS E TSE TSX SWX AM E X XT RA OT CP K AS X T S XV H LS E OT CB B OT CN O AI M G rand T otal 1, 741. 6 484. 2 473. 1 236. 1 218. 9 151. 8 116. 5 107. 5 91. 0 85. 2 80. 8 78. 1 77. 9 41. 1 40. 0 29. 9 28. 2 16. 5 7. 8 6. 9 5. 9 2. 1 2. 1 0. 3 152.5 U S D LT M To tal E B IT DA ($m) N a sda qG S S E HK OM TSE K OS E GT SM CM R TS OS E K LS E X TR A AM E X AS X SWX NYS E O T CN O AI M TSX N a sda qG M T S XV H LS E BS E O T CP K O T CB B G rand T otal 1,692. 6 662. 9 266. 8 88. 9 78. 1 52. 4 34. 5 19. 8 19. 3 10. 7 10. 5 6. 4 3. 0 0. 8 0. 0 -1. 1 -1. 9 -2. 9 -8. 2 -8. 3 -15. 4 -27. 3 -43. 4 -48. 3 2,789.8 E B IT DA % S E HK AS X GTS M XT R A N a sda qG S TSE OS E OM CM K LS E R TS K OS E SWX N a sda qG M OT CB B TSX BS E AM E X T S XV OT CP K OT CN O H LS E NYS E AI M G rand T otal 42. 6% 37. 2% 36. 3% 31. 2% 30. 1% 22. 7% 18. 0% 15. 3% 14. 6% 13. 7% 13. 1% 5.2% 1.9% 1.6% -5. 3% -14.3% -23.5% -36.4% -39.0% -41.3% -50.6% #DI V /0! #DI V /0! #DI V /0! 6.7%
Figure 29. Comparison by Exchange Source. Capital IQ
Page 20
Financ ing - Las t Three Months (US $ m)
Mo nth A pr-09 Company Name Collec tive Media G OOM R adio Marin S oftware The R ubic o n P rojec t FreeW heel Cellufun Conduc to r Inc . S c anS c o ut Batanga Viximo DoubleT wis t IMS hopping S oc ialtext Mixerc as t S oundClo ud Tu beMogu l Tribal No va Tripbas e S oc ialc as t Brandtology S c an & Target J odange Fo odis ta A pr-09 T otal May-09 Fac eboo k One Net E ntertainment Cyberplex P eer39 OpenX Imeem E veryZing Wo nderHill BlogHer Inc . Fu hu Inc . Azu ki S ys tems I Lo ve R ewards TimeBridge OLX Doc uS ign Medialets R es onate Netwo rks Mo 'Minis VoxPo p Lo op'd N etwork May-09 T otal US A C hina C a na da US A UK US A US A US A US A US A US A C a na da US A US A US A US A US A I sra el US A US A 0.8 13. 6 10.0 22.9 23.3 4.0 2. 0 1. 5 1. 5 18.7 40.8 205.0 6. 0 5. 9 5. 0 5. 0 5. 0 6. 3 7. 0 7. 0 8.8 8. 3 10. 0 10.0 12.9 10.5 10.0 C ou ntry US A F ra nce US A US A US A US A US A US A US A US A US A US A US A US A G ermany US A C a na da US A US A S inga pore F ra nce US A US A 15. 6 8.0 1.3 1.2 0. 6 45.3 52.5 16.1 12.0 200. 0 2. 0 1. 4 1. 4 3. 3 3. 0 2. 5 4. 1 4. 7 4. 5 5.0 5. 0 8.1 7. 5 10.0 10.0 8.0 16.0 13.0 5. 0 12.0 Ange l/S eed Debt financ ing PIP E S eries A S eries B 20.0 S eries C S eries D G rand T otal 20.0 16.0 13.0 13.0 12.0 10.0 10.0 8. 1 7. 5 5. 0 5. 0 4. 7 4. 5 4. 1 3. 3 3. 0 2. 5 2. 0 1. 4 1. 4 1. 3 1. 2 0. 6 149.5 200. 0 20.0 12.9 10.5 10.0 8. 8 8. 3 7. 0 7. 0 6. 3 6. 0 5. 9 5. 0 5. 0 5. 0 4. 0 2. 0 1. 5 1. 5 0. 8 334.1
Page 21
Mo nth J un-09
Co mpany Name S ugar Inc . Tumri Bo ku Wimba G rab N etwo rks G oo jet S AS AdMeld Inc . beeT V blueK iw i S oftware S A No keena S ens e Netw orks Zo os k G ather Tao mee Animo to G ameG ro und RingRevenue Crowdc as t YuMe eRepublik News er L L C Clic kF uel Inigral AdE x Media G ROU .P S Yapta OneT XT my6s ens e Cliqs et AdW hirl P ic aboo LiquidP lanner G lubble To daC ell Mas hLo gic
C ountry US A US A US A US A US A F rance US A US A F rance US A US A US A US A C hina US A I sra el US A US A US A S pain US A US A US A US A US A US A US A I sra el US A US A US A US A N etherlands I sra el US A
Angel/S eed
Debt financ ing
P IP E
S eries A
S eries B 1 5.0
S eries C 16. 0
S eries D
G rand To tal 16. 0 15. 0 13. 0
13. 0 12. 0 12.0 8. 5 8. 0 8. 0 6. 5 6. 5 6. 0 6. 0 5. 3 5.0 4. 4 4.1 3. 5 3.0 2.9 2.8 2. 5 2. 5 2.4 2. 3 2.1 2. 0 2. 0 2. 0 1.5 1.0 1. 0 1.0 1. 0 1. 0 0.5 39.3 15.3 13.5 6 7.8 34.0 5.3
12. 0 12. 0 8.5 8.0 8.0 6.5 6.5 6.0 6.0 5.3 5.0 4.4 4.1 3.5 3.0 2.9 2.8 2.5 2.5 2.4 2.3 2.1 2.0 2.0 2.0 1.5 1.0 1.0 1.0 1.0 1.0 0.5 175.1
J un-09 T otal
Figure 30. Financing, Last Three Months Source. Company reports
Page 22
C ompany Des c riptio ns - C urrent Mo nth C apital Market A c tivity
C ompany
A dE x media
HQ
U nited S ta tes
W ebs ite
www.adex.com
Des criptio n
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 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. 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 . 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 .
A dMeld Inc . A nimoto
U nited S ta tes U nited S ta tes
www.admeld.com www.animoto.com
A dW hirl
U nited S ta tes
www.adwhirl.com
beeTV
U nited S ta tes
www.bee.tv
blueK iwi S oftware S A B oku
F ra nc e U nited S ta tes
www.bluekiwi.fr www.boku.com
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 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 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, 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 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 . 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 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 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 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 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 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, V 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 G is ba s ed in S a n F ra nc isc o, C a lifornia . 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 . 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 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. 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 . 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. 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. 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 . 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 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 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 .
C liqs et
U nited S ta tes
www.cliqset.com
C rowdc as t eR epublik
U nited S ta tes S pa in
www.crowdcast.com www.erepublik.com
G am eG ro und G ath er Inc .
I s ra el U nited S ta tes
www.gameground.com www.gather.com
G lubble BV
N etherla nds
www.gubble.com
G o ojet S AS
F ra nc e
www.goojet.com
G rab N etworks G R OU .P S I Lo ve R ewards Inc .
U nited S ta tes U nited S ta tes C a na da
www.grabnetworks.com www.gro.ps/groudotps www.iloverewards.com
In ig ral L iquidP lan ner Mas hLo gic m y6s en s e News er L LC Nokee na
U nited S ta tes U nited S ta tes U nited S ta tes I s ra el U nited S ta tes U nited S ta tes
www.inigral.com wwww.liquidpl anner.com www.mashlogic.com www.my6sense.com www.newser.com www.nokeena.com
On eTX T P ic aboo R ing R evenu e
U nited S ta tes U nited S ta tes U nited S ta tes
www.onetxt.com www.picaboo.com www.ringrevenue.com
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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 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 . 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 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 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 . 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 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. 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 , 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 .
S ug ar Inc .
U nited S ta tes
www.sugarinc.com
T aoMee
C hina
www.taomee.com
T odaCell T um ri
I s ra el U nited S ta tes
www.todacell.com www.tumri.co
W imba Inc
U nited S ta tes
www.wimba.com
Yapta
U nited S ta tes
www.yapta.com
YuMe
U nited S ta tes
www.yumenetworks.co m
Zoos k
U nited S ta tes
www.zoosk.com
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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