Web 2.0 Weekly - Mar. 16, 2010

SOFTWARE & SERVICES 16 MARCH 2010
David Shore, CFA, MBA 416.860.6784

WEB 2.0 WEEKLY dshore@mackieresearch.com
Damian Wojcichowsky, CFA 416.860.7652
Despite Jittery Markets, VC Funding Pace Steady

Capital Markets Activity
March materializing in line with 2010 monthly trend: The monthly trend in 2010 for approximately $200 million in
financing evenly spread across the month is materializing once again this March. Total transaction value in the Web
2.0 universe March-to-date is $90.4 million (vs. $42.9 million last week). The number of financings stands at 13 (vs. 8
last week), averaging $7.0 million each (compared with $5.4 million last week). In comparison, total capital raised in
February was $204.1 million, averaging $8.2 million over 25 deals. January had $219.1 million, averaging $9.1 million
over 24 deals. December saw $450.4 million, averaging $12.9 million over 35 deals. November saw $205.0 million,
averaging $10.2 million (20 deals).
Financing Activity Last Twelve Months
500.0 16.0
450.0 13.9
14.0
12.9
400.0
12.0
350.0
10.2
10.0
300.0 9.0 9.1
8.2
(US$m)
(US$m)
250.0 8.0
7.0
6.8
6.5
200.0 6.0
5.8
5.6 6.0
4.7
150.0
4.0
100.0
2.0
50.0
0.0 0.0
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
*May-09 includes $200m FB investment Total Average

Dec-09 includes $180m Zynga investment
Deal round-up for March: The large deal highlights for the month include:
Saf-T-Net – developer of a suite for communicating with large audiences – was acquired by Blackboard for $33
million.
Adenyo – mobile ad network – raised $26.9 million in private financing.
LivingSocial – a collection of apps for social network and mobile platforms – raised $25 million in Series B funds.
Multicast Media – a live and on-demand video operation – was acquired for $18 million by KIT Digital.
DataXu – an online ad optimization and bidding platform – raised $11 million in a Series B financing.
GyPSii – a location-based search application (and a GeoSentric venture) – raised $11 million.
Hunch – a recommendation engine – raised $10 million in a Series B financing.
Lucid Imagination – distributor of the Apache open source search engine – raised $10 million in Series B funds.
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
w w w . m a c k i e re s e a r c h . c o m
Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460
Page 2
The Web 2.0 Universe

Ninety-seven public Web 2.0 companies: Our Web 2.0 universe contains 97 companies, with a combined market cap of
approximately $77 billion (Figure 1). The median market cap for the group is $47 million, with average trailing revenue
of $408 million (median $12.6 million). The companies are also generally profitable with a median EBITDA margin of
11.4%. On a valuation basis, the overall average is 4.8x trailing revenue (median 1.8x) and 10.8x trailing EBITDA
(median 8.7x). Eleven of the companies have more than 500 employees.
C omparable C ompany Analys is > Web 2.0

Trading C urrent US D Market US D L TM Total US D L TM Total E B ITDA TE V/L TM TE V/L TM
C ompany Name L TM as of Tic ker E xc hange C urrency HQ Pric e C ap ($m) R ev ($m) E B ITDA ($m) % R evenue E B ITDA E mployees
Accelerize New Media , Inc. 9/30/2009 AC L Z OT C B B US D U nited S ta tes 0.55 15. 8 4.1 (1. 5) -36. 5% 5. 0x - 11
Actoz S oft C o. , Ltd. 9/30/2009 A052790 K OS E KRW S outh K orea 14550.00 113. 0 121. 9 27. 0 22. 2% 0. 6x 2. 6x NA
AQ Interactive, Inc. 12/31/2009 3838 TS E JPY J apa n 153100.00 91. 9 NM NM NM 1. 0x - NA
As knet AG 9/30/2009 XT R A: A5A XT R A E UR G erma ny 3.60 24. 8 8, 455. 1 (108. 9) -1. 3% 0. 2x - NA
As s ocia ted Media Holdings Inc. 6/30/2007 AS MH OT C P K US D U nited S ta tes 0.00 0. 1 0.1 (2. 3) NM 9. 0x - 3
B eta wa ve C orporation 9/30/2009 B W AV OT C B B US D U nited S ta tes 0.10 2. 9 8.4 (14. 3) NM 0. 0x - 48
B eyond C ommerce, Inc. 9/30/2009 B YOC OT C B B US D U nited S ta tes 0.03 2. 0 13. 5 (12. 4) -91. 9% 1. 0x - 86
B igs tring C orp. 9/30/2009 BS GC OT C B B US D U nited S ta tes 0.02 1. 4 0.1 (1. 0) NM 38. 0x - 4
B right T hings plc 9/30/2009 AIM: B G T AIM GBP U nited K ingdom 0.01 7. 2 0.1 (3. 4) NM 34. 2x - 9
B roa dW ebAs ia Inc. 9/30/2008 BWBA OT C P K US D U nited S ta tes 0.04 3. 4 0.0 (4. 6) NM - - 46
C DC C orp. 12/31/2009 C HIN. A Na s daqG S US D Hong K ong 2.86 302. 5 320. 1 36. 6 11. 4% 0. 9x 7. 9x NA
C ha ngyou. com L imited 12/31/2009 CY OU Na s daqG S US D C hina 31.06 1, 601. 7 267. 6 167. 7 62. 7% 5. 1x 8. 2x 1,308
C hines e G a mer International 9/30/2009 G T S M: 3083 GTS M TWD T a iwa n 341.50 901. 8 0.0 (0. 1) NM 11. 8x 20.3x NA
C ody V entures C orpora tion 6/30/2007 CVCP OT C P K US D U nited S ta tes 0.00 0. 1 0.1 (0. 1) NM 1. 6x - NA
C ornerW orld C orpora tion 10/31/2009 CW R L OT C B B US D U nited S ta tes 0.02 1. 9 9.2 NM NM 1. 2x - 16
C yberplex Inc. 9/30/2009 T S X:C X TS X C AD C ana da 0.92 62. 1 2, 169. 2 1, 258.7 58. 0% 0. 4x 3. 3x NA
DADA S pA 9/30/2009 C M: DA CM E UR Ita ly 5.26 116. 5 12. 6 NM NM 0. 8x 6. 4x NA
Digita lP os t Intera ctive, Inc. 9/30/2009 DG L P OT C B B US D U nited S ta tes 0.06 5. 0 1.2 (0. 9) -73. 8% 6. 0x - 7
Digita lT own, Inc. 11/30/2009 DG T W OT C B B US D U nited S ta tes 1.00 27. 4 0.0 (1. 4) NM - - 3
Dolphin Digital Media, Inc. 9/30/2009 DP DM OT C B B US D U nited S ta tes 0.28 15. 9 0.3 (4. 6) NM - - NA
DXN Holdings B hd 11/30/2009 DXN K LS E MY R Mala ys ia 0.65 44. 5 34. 6 3. 8 11. 1% 0. 7x 3. 9x NA
E n2G o Interna tiona l, Inc. 11/30/2009 E TGI OT C B B US D U nited S ta tes 0.25 6. 0 NM (1. 9) NM - - NA
Neurotech P ha rmaceutica ls C o. , Ltd. 9/30/2009 A041060 K OS E KRW S outh K orea 390.00 26. 5 0.2 0. 0 18. 7% 4. 3x 9. 1x NA
eW orldC ompanies , Inc. 6/30/2008 EWR C OT C P K US D U nited S ta tes 0.00 0. 9 0.0 NM NM 30. 3x - NA
F luid Mus ic C ana da , Inc. 9/30/2009 T S X:F MN TS X C AD U nited S ta tes 1.80 111. 2 5.6 (3. 0) -54. 0% 18. 2x - NA
F rogs ter Interactive P ictures AG 6/30/2009 FR G XT R A E UR G erma ny 19.90 69. 6 7.6 (4. 1) -54. 0% 7. 6x - NA
G ama nia Digital E nterta inment C o. , Ltd. 9/30/2009 6180 GTS M TWD T a iwa n 48.45 233. 4 0.2 (0. 1) -47. 0% 1. 4x 8. 3x NA
G ameO n C o Ltd. 12/31/2009 3812 TS E JPY J apa n 67100.00 71. 7 54. 2 8. 9 16. 5% - - NA
G eoS entric Oyj 9/30/2009 G E O 1V HL S E E UR F inla nd 0.05 61. 3 9, 377. 1 2, 185.3 23. 3% 14. 8x - 118
G iant Interactive G roup, Inc. 12/31/2009 GA NY S E US D C hina 7.62 1, 728. 4 0.5 (1. 9) NM - - NA
G iga Media Ltd. 3/31/2009 G IG M Na s daqG S US D T a iwa n 3.12 170. 0 183. 6 NM NM 0. 6x - 751
G ra vity C o., L td 9/30/2009 GR VY Na s daqG M US D S outh K orea 1.98 55. 0 0.2 NM NM - - 469
G ree, Inc. 12/31/2009 T S E : 3632 TS E JPY J apa n 5530.00 2, 762. 5 658. 8 233. 3 35. 4% 9. 8x 16.7x NA
G ungHo O nline E nterta inment, Inc. 9/30/2009 3765 OS E JPY J apa n 206600.00 261. 5 266. 0 156. 5 58. 8% 1. 9x 8. 4x NA
HanbitS oft, Inc. 9/30/2009 A047080 K OS E KRW S outh K orea 3775.00 72. 9 9.5 2. 1 22. 3% 1. 0x - NA
IAC /InterActiveC orp. 12/31/2009 IAC I Na s daqG S US D U nited S ta tes 23.60 2, 750. 8 1, 375. 8 81. 7 5.9% 0. 8x 14.0x NA
InternetArray, Inc. 12/31/2006 INAR OT C P K US D U nited S ta tes 0.00 0. 0 5.9 (4. 0) -68. 6% 1. 1x - NA
Is e B lu E quity C orp. 12/31/2006 IS B L OT C P K US D U nited S ta tes 0.00 0. 0 0.0 NM NM 0. 5x - NA
is eemedia Inc. 12/31/2009 IE E T S XV C AD C ana da 0.16 10. 6 2.3 (3. 3) NM 4. 2x - NA
J umbuck E nterta inment L imited 12/31/2009 AS X: J MB AS X AUD Aus tra lia 0.25 11. 1 15. 2 6. 6 43. 4% 0. 4x 0. 9x 79
K ent International Holdings Inc. 9/30/2009 K NT H OT C P K US D U nited S ta tes 1.69 6. 0 0.0 (0. 4) NM - - NA
K ings oft C orporation L imited 9/30/2009 3888 S E HK HK D C hina 6.44 911. 3 143. 4 57. 7 40. 2% 6. 1x 15.1x 2,271
K iwibox. C om, Inc. 9/30/2009 K IW B OT C B B US D U nited S ta tes 0.01 6. 0 0.1 (2. 3) NM - - 14
L ingo Media C orporation 9/30/2009 T S XV :L M T S XV C AD C ana da 0.74 9. 0 1.4 (2. 4) NM 6. 2x - NA
L ookS mart, L td. 9/30/2009 LO O K Na s daqG M US D U nited S ta tes 0.91 15. 6 54. 0 (4. 5) -8. 4% - - 90
Mixi, Inc. 12/31/2009 2121 TS E JPY J apa n 570000.00 973. 4 141. 5 42. 8 30. 3% 6. 0x 19.7x NA
Mobile Data C orp. 10/31/2009 MB Y L OT C B B US D U nited S ta tes 0.10 2. 4 NM NM NM - - NA
Modern T imes G roup Mtg AB 12/31/2009 MT G B OM SEK S weden 418.00 3, 864. 2 1, 988. 3 265. 1 13. 3% 2. 2x 16.2x NA
MO K O. mobi L imited 6/30/2009 MK B AS X AUD Aus tra lia 0.10 10. 8 0.7 (2. 5) NM 13. 5x - NA
Multiplied Media C orpora tion NA T S XV :MMC T S XV C AD C ana da 0.24 31. 1 NA NM NM - - NA
Myria d G roup AG 6/30/2009 MY R N S WX C HF S witzerla nd 4.58 190. 3 63. 0 3. 4 5.4% 3. 0x - 405
NE OW IZ G a mes C orpora tion 12/31/2008 A095660 K OS E KRW S outh K orea 36000.00 669. 4 218. 2 58. 6 26. 8% 3. 0x 11.2x NA
NetDragon W ebS oft, Inc. 9/30/2009 777 S E HK HK D C hina 4.39 299. 1 91. 4 27. 8 30. 4% 1. 6x 5. 4x 2,426
Netea s e. com Inc. 12/31/2009 NT E S Na s daqG S US D C hina 39.95 5, 174. 4 550. 2 317. 3 57. 7% - - NA
NeuL ion Incorpora ted 9/30/2009 T S X:NL N TS X C AD C ana da 0.53 60. 5 24. 9 (16. 1) -64. 5% 1. 7x - 237
NeXplore C orpora tion 9/30/2009 NXP C OT C P K US D U nited S ta tes 0.50 27. 9 0.5 NM NM - - NA
Ngi G roup Inc. 12/31/2009 2497 TS E JPY J apa n 49250.00 67. 4 75. 8 (1. 3) -1. 7% 0. 1x - NA
Northga te T echnologies L imited 9/30/2009 590057 BSE INR India 18.70 14. 3 48. 7 (52. 3) NM 0. 3x - NA
O AO R B C Informa tion S ys tems 12/31/2007 RBCI MIC E X R UB R us s ia 36.50 171. 9 0.0 (0. 3) NM 1. 1x 8. 2x NA
O riented Media G roup B erha d 9/30/2009 OME DIA K LS E MY R Mala ys ia 0.20 7. 8 NM NM NM 2. 8x - NA
O pen T ext C orp. 12/31/2009 OT E X Na s daqG S US D C ana da 49.31 2, 784. 2 854. 6 230. 2 26. 9% 3. 3x 12.3x 3,700
O penwa ve S ys tems Inc. 12/31/2009 OP W V Na s daqG S US D U nited S ta tes 2.58 216. 1 192. 2 8. 6 4.5% 0. 6x 13.0x 590
T he P a rent C ompa ny 8/2/2008 K IDS . Q OT C P K US D U nited S ta tes 0.00 0. 0 112. 0 (13. 5) -12. 0% 0. 2x - 347
P erfect W orld C o. , L td. 12/31/2009 PWR D Na s daqG S US D C hina 39.47 1, 966. 6 28. 1 1. 3 4.5% 0. 2x 0. 3x NA
P NI Digita l Media Inc. 12/31/2009 T S XV :P N T S XV C AD C ana da 1.57 51. 8 2, 098. 4 1, 124.7 53. 6% 1. 9x 7. 6x NA
Q uepas a C orp. 9/30/2009 QP S A OT C B B US D U nited S ta tes 3.72 47. 4 0.2 (9. 8) NM - - 74
R ea l V a lue E s tates , Inc. 11/30/2009 R V LU OT C B B US D Is rael 1.03 6. 6 NM NM NM - - NA
S a ha ra Media Holdings , Inc. 9/30/2009 S HHD OT C B B US D U nited S ta tes 0.30 9. 3 0.0 (4. 7) NM - - 15
S handa Intera ctive E nterta inment L td. 12/31/2009 S NDA Na s daqG S US D C hina 43.01 2, 892. 6 767. 5 333. 9 43. 5% - - NA
S hutterfly, Inc. 12/31/2009 S FLY Na s daqG S US D U nited S ta tes 22.64 586. 5 246. 4 32. 6 13. 2% 1. 6x 12.4x 519
S K C ommunications C o. , L td. 12/31/2008 A066270 K OS E KRW S outh K orea 13050.00 482. 0 202. 8 13. 2 6.5% 2. 4x 36.5x NA
S NAP Interactive, Inc. 9/30/2009 S TVI OT C B B US D U nited S ta tes 0.27 8. 8 3.4 0. 5 15. 6% 2. 1x 13.6x 11
S ocia l Media V entures Inc. 12/31/2008 S MV I OT C P K US D U nited S ta tes 0.00 0. 0 0.1 (0. 1) -60. 6% 4. 6x - NA
S ocia lwis e, Inc. 12/31/2009 S CLW OT C B B US D U nited S ta tes 0.52 25. 2 0.0 (4. 7) NM - - NA
S ohu. com Inc. 12/31/2009 S OHU Na s daqG S US D C hina 54.14 2, 044. 7 515. 2 222. 8 43. 2% 3. 0x 7. 0x 3,997
S park Network s , Inc. 12/31/2009 LO V AME X US D U nited S ta tes 3.42 70. 5 45. 4 9. 5 20. 9% 1. 4x 6. 8x NA
S pectrumDNA, Inc. 9/30/2009 S P XA OT C B B US D U nited S ta tes 0.15 7. 3 0.1 (2. 5) NM - - 7
S prylogics International C orp 10/31/2009 T S XV :S P Y T S XV C AD C ana da 0.03 0. 8 0.5 (0. 2) -50. 0% 1. 7x - NA
T encent Holdings Ltd. 9/30/2009 700 S E HK HK D C hina 167.50 39, 388.0 1, 588. 7 811. 4 51. 1% 27. 3x - 6,194
T he9 L imited 3/31/2009 NC T Y Na s daqG S US D C hina 7.32 183. 8 248. 7 65. 6 26. 4% - - 1,626
T heS treet. com, Inc. 9/30/2009 TS CM Na s daqG M US D U nited S ta tes 3.73 117. 6 61. 1 1. 7 2.8% 0. 9x 31.6x 310
T ree. C om, Inc. 12/31/2009 TR E E Na s daqG M US D U nited S ta tes 8.81 97. 4 216. 8 9. 2 4.2% 0. 4x 9. 8x NA
U nila va C orporation 12/31/2008 UNL A OT C B B US D U nited S ta tes 0.17 17. 0 5.3 (1. 0) -18. 1% 3. 3x - 39
U nis erve C ommunica tions C orp. 11/30/2009 T S XV :U S S T S XV C AD C ana da 0.12 2. 9 5.1 (0. 9) -18. 1% 0. 5x 9. 4x NA
U nited O nline, Inc. 12/31/2009 UNT D Na s daqG S US D U nited S ta tes 7.37 626. 2 990. 1 204. 1 20. 6% 0. 8x 4. 1x 1,699
U OMO Media , Inc 10/31/2009 UO MO OT C B B US D C ana da 0.04 3. 2 1.0 (0. 4) -42. 2% 3. 8x - NA
V a lueC lick, Inc. 12/31/2009 V CLK Na s daqG S US D U nited S ta tes 9.97 832. 8 422. 7 116. 1 27. 5% 1. 6x 5. 8x NA
V elti P lc 6/30/2009 VEL AIM GBP U nited K ingdom 3.34 188. 5 79. 5 16. 3 20. 5% 2. 3x 11.0x 450
V O IS , Inc. 12/31/2009 V OIS OT C B B US D U nited S ta tes 0.01 10. 0 0.0 (1. 4) NM - - 2
W ebzen Inc. 12/31/2009 K OS E : A069080 K OS E KRW S outh K orea 12150.00 126. 9 24. 5 (0. 8) -3. 2% 2. 6x - NA
W e-R -Y ou C orp. 9/30/2007 WER U OT C P K US D U nited S ta tes 0.01 0. 3 0.6 (0. 2) -29. 1% 0. 6x - NA
W izza rd S oftware C orporation 9/30/2009 W ZE AME X US D U nited S ta tes 0.35 18. 7 5.2 (3. 9) -76. 4% 3. 9x - 110
W orlds . com Inc. 9/30/2009 W DDD OT C B B US D U nited S ta tes 0.15 8. 0 0.1 (0. 6) NM - - 1
W ynds torm C orpora tion NA W Y ND OT C P K US D U nited S ta tes 0.05 0. 9 NA NM NM - - NA
XING AG 9/30/2009 O1B C XT R A E UR G erma ny 28.60 202. 8 58. 2 15. 7 27. 0% 2. 6x 9. 5x 266
Y D O nline C orp. 12/31/2007 A052770 K OS E KRW S outh K orea 6510.00 86. 1 60. 4 13. 0 21. 6% 1. 5x 7. 2x NA
Y nk K orea Inc. 12/31/2008 A023770 K OS E KRW S outh K orea 2715.00 19. 1 12. 5 1. 3 10. 5% 1. 4x 13.7x NA
High 39, 388.0 9, 377. 1 2, 185. 3 62. 7% 38. 0x 36.5x 6, 194
L ow 0. 0 0.0 -108. 9 -91. 9% 0. 0x 0. 3x 1
Average 828.8 408.0 96.8 3.0% 4.8x 10.8x 720
Media n 47. 4 12. 6 -0. 1 11. 4% 1. 8x 8. 7x 90
Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
Page 3
Capital Markets Activity (M&A and Financing)

March materializing in line with 2010 monthly trend: The monthly trend in 2010 for approximately $200 million in
financing evenly spread across the month is materializing once again this March. Total transaction value in the Web 2.0
universe March-to-date is $90.4 million (vs. $42.9 million last week). The number of financings stands at 13 (vs. 8 last
week), averaging $7.0 million each (compared with $5.4 million last week). In comparison, total capital raised in
February was $204.1 million, averaging $8.2 million over 25 deals. January had $219.1 million, averaging $9.1 million
over 24 deals. December saw $450.4 million, averaging $12.9 million over 35 deals. November saw $205.0 million,
averaging $10.2 million (20 deals).
Financing Activity Last Twelve Months
500.0 16.0
450.0 13.9
14.0
12.9
400.0
12.0
350.0
10.2
10.0
300.0 9.0 9.1
8.2
(US$m)
(US$m)
250.0 8.0
7.0
6.8
6.5
200.0 6.0
5.8
5.6 6.0
4.7
150.0
4.0
100.0
2.0
50.0
0.0 0.0
Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
*May-09 includes $200m FB investment Total Average

Dec-09 includes $180m Zynga investment
Figure 2. Financings, Last Twelve Months

Source. Company reports
Page 4
Deal round-up for March: The large deal highlights for the month include:
Saf-T-Net – developer of a suite for communicating with large audiences – was acquired by Blackboard for $33 million.
Adenyo – mobile ad network – raised $26.9 million.
LivingSocial – a collection of apps for social network and mobile platforms – raised $25 million in Series B funds.
Multicast Media – a live and on-demand video operation – was acquired for $18 million by KIT Digital.
DataXu – an online ad optimization and bidding platform – raised $11 million in a Series B financing.
GyPSii – a location-based search application (and a GeoSentric venture) – raised $11 million.
Hunch – a recommendation engine – raised $10 million in a Series B financing.
Lucid Imagination – distributor of the Apache open source search engine – raised $10 million in Series B funds.
All other deals in the month were in the amount of $10 million or less. For additional details on financings, see Figures
23 and 24 (at end of note).
Financing & M/A Summary - Last Three Months
90.0
80.0
70.0
60.0
50.0
Mar-10
(US$m)
Feb-10
Jan-10
40.0
30.0
20.0
10.0
0.0
Vivox
Flixster
DubMeNow
Avvasi
AdMarvel
XIHA
Mochi Media
Adenyo
Guvera
Multicast Media
DataXu
Aggregate Knowledge
Everyscape
Eyeka
Effective Measure
Beezag
Cognitive Match
Moblyng
Decision Maker Media
Stylehive
Rent the Runway
Fynanaz
Pursway
Sway
MOG
Stylefeeder
StudioNow
Moonshoot
ThisNext
Qiyi
LivingSocial
GyPSii
Cozi
Glam Media
Yelp
Paymo
SMSGupShup
Yodle
Hunch
NetBase
Currensee
PeerPong
Apisphere
Scrapblog
Joonto
Burbn
AppVee
AppsFire
Aardvark
Spiceworks
Flurry
Smilebox
OneForty
Blippy
Bit.ly
Graphic.ly
Cardagin Networks
Backupify
SocialGO
Ranker
Saf-T-Net
Quantcast
TripIt
Echo Nest
Blue Kai
TidalTV
BrightRoll
Gaikai
Jelli
TellAPal
KODA
Ngmoco
Lucid Imagination
BuyWithMe
Smartdate
Chomp
Visible Technologies
Posterous
NuConomy
Vook
Serious Business
Ustream
Prosper.com
Yammer
Reframe It
6 Waves
SeaWell Networks
TuneWiki
Drimmi
WebVisible
Figure 3. Capital Market Activity, Last Three Months

Page 5
Advertising and Social Networks the top draw: In the past three months, Advertising and Social Networks continue to
trade places as the sectors with the largest number of deals (eight and nine, respectively). Location-Based SNS start-ups
have made a splash of late with three financings (Figure 4).
Capital Market Activity by Sector - Last Three Months
350.0
300.0
250.0
200.0
(US$m)
150.0
100.0
50.0
294.6 257.1 179.0 147.2 131.0 125.9 107.4 104.0 82.6 79.6 69.8 50.0 33.0 32.2 32.0 30.0 27.5 14.0 13.6 13.4 13.2 12.0 10.0 8.8
0.0
Mobile Payment
Social Commerce
Internet Retail
Gaming
Online Calendar
Travel
Mobile
Media
Enterprise
Microblog
Online Learning
Music
Financial Services
Search
Mobile Ad
Location-based
SMS/Voice
Blog
Social Networks
Video
Advertising
Crowdsourced
Virtual World
Analytics
Content
SNS
# companies
6 5 8 5 6 5 3 9 4 5 2 1 3 3 1 1 3 1 1 2 1 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months

Page 6
Capital Markets Activity (Price Performance)

Web 2.0 index continues to outpace Nasdaq recovery: Our Web 2.0 index (market-cap weighted) has positively
diverged from the broader tech market (represented by the Nasdaq Composite Index) since Q1/09 (Figure 5).
Web 2.0 Index Price Performance

250
200
150
100
50
0
3/16/2009
3/30/2009
4/13/2009
4/27/2009
5/11/2009
5/25/2009
6/8/2009
6/22/2009
7/6/2009
7/20/2009
8/3/2009
8/17/2009
8/31/2009
9/14/2009
9/28/2009
10/12/2009
10/26/2009
11/9/2009
11/23/2009
12/7/2009
12/21/2009
1/4/2010
1/18/2010
2/1/2010
2/15/2010
3/1/2010
Index: Web 2.0 (Market Cap) ^COMP - Share Pricing
Figure 5. Web 2.0 Price Performance

Source. Capital IQ
Page 7
Bearish week for Web 2.0: Twenty-two companies in our universe had positive stock price performances (averaging
+4.0%) over the past week (for stocks with prices greater than $1) (Figure 6), while 28 companies showed negative 1-
week returns (averaging -3.6%).
1 Week P rice P erformance

A s knet A G 11.5%
S handa Interactive Entertainment Ltd. 8.2%
NEOWIZ G ames Corporation 7.5%
Ngi G roup Inc. 7.3%
CDC Corp. 5.9%
Fluid Mus ic Canada, Inc. 5.9%
Y D Online Corp. 5.9%
S hutterf ly , Inc. 5.7%
Tencent Holdings Ltd. 4.2%
United Online, Inc. 4.1%
G iant Interactive G roup, Inc. 3.3%
Open Tex t Corp. 3.1%
DA DA S pA 2.7%
Webz en Inc. 2.5%
Chines e G amer International 2.4%
Perf ect World Co., Ltd. 2.0%
S park Netw orks , Inc. 1.3%
S ohu.com Inc. 1.3%
The9 Limited 1.1%
Mix i, Inc. 0.7%
Neteas e.com Inc. 0.5%
Tree.Com, Inc. 0.1%
TheS treet.c om, Inc. -0.5%
G ravity Co., Ltd -0.7%
OA O R B C Inf ormation S y s tems -0.8%
Y nk K orea Inc. -1.3%
HanbitS oft, Inc. -1.3%
Frogs ter Interactive Pictures A G -1.3%
IA C/InterA ctiveCorp. -1.6%
V alueClick, Inc. -1.8%
K ings of t Corporation Limited -1.8%
NetDragon WebS oft, Inc. -2.0%
S K Communica tions Co., Ltd. -2.2%
Modern Times G roup Mtg A B -2.3%
V elti Plc -2.3%
My riad G roup A G -2.6%
G ree, Inc. -3.0%
A Q Interactive, Inc. -3.1%
X ING A G -3.4%
G amania Digital Entertainment Co., Ltd. -4.2%
A ctoz S oft Co., Ltd. -4.3%
Changy ou.com Limited -4.8%
G igaMedia Ltd. -5.8%
Quepas a Corp. -5.8%
Openw ave S y s tems Inc. -5.8%
Neurotech Pha rmaceuticals Co., Ltd. -6.0%
R eal V alue Es tates , Inc. -6.4%
PNI Digital Media Inc. -6.5%
G ameOn Co Ltd. -8.1%
Northgate Technologies Limited -10.7%
-0.15 -0.1 -0.05 0 0.05 0.1 0.15
Figure 6. 1-Week Price Performance

Source. Capital IQ
Page 8
Public Company Industry News (Partnerships, Financial Results, New Products)

K ey Developments
C ompany Headline Notes
Modern Times G roup Mtg AB (OM: MTG Modern T imes G roup Mtg AB Announces New Modern T imes G roup Mtg AB a nnounced the a ppointment of La urence Mia ll-d'Aout as C hief of S ta ff for MT G 's F ree-T V
B) Appointments opera tions , a nd the a ppointment of Ma rtin L ewerth in the newly crea ted role of C hief of S ta ff for the group's P a y-T V
opera tions . L a urence Mia ll-d'Aout ha s worked at MT G s ince 2002 a nd ha s been C E O of the group's F ree-T V E merging
Markets bus ines s s ince J a nua ry 2008. After origina lly joining MT G as executive a s s is ta nt to the P res ident, La urence wa s
res pons ible for the la unch of V ias at B roadca s ting's pa y-T V opera tions in E a s tern E urope in 2003, a nd then beca me Hea d of
the new bus ines s s egment that als o included the s atellite pay-T V pla tform in the B altics . L a urence replaces Alexander
Holland, who is leaving the compa ny to purs ue other opportunities . Ma rtin Lewerth joined MT G in 2001 a nd ha s been the
group's C hief T echnology O fficer s ince 2007. Martin wa s previous ly V ia s a t's C T O between 2005 a nd 2007, and origina lly
joined MT G a s the C E O of V ias at S atellite S ervices . La urence a nd Ma rtin will overs ee the development of the group's free-
T V a nd pa y-T V opera tions res pectively, both a cros s the Nordic a nd the E merging Ma rket regions .
C DC C orp. (Nas daqG S : C HIN.A) C DC C orporation S eeks Acquis ition C DC C orpora tion a nnounced fina ncia l res ults for the fourth quarter a nd yea r ended December 31, 2009. F or the fourth
qua rter of 2009, C DC C orporation reported Adjus ted E B IT DA from continuing operations or Adjus ted E B IT DA* of $14. 0
million, a 56% increas e from Adjus ted E B IT DA of $9. 0 million for the third qua rter 2009, a nd compa red to Adjus ted E B IT DA
for the fourth qua rter of 2008 of $9. 7 million. F or the fourth qua rter of 2009, revenue wa s $83. 0 million compa red to $76. 6
million in the third qua rter of 2009 a nd $97. 0 million for the fourth quarter of 2008. "C DC G loba l S ervices is executing on a
number of s trategic initiatives that we expect will help expa nd its IT outs ourcing opera tions in C hina which is a growing
s ervices ma rket, " s aid C K W ong, cha irma n of C DC G loba l S ervices . "T hrough a combina tion of orga nic growth a nd
dis ciplined a cquis itions in various cities in C hina , we pla n to rea ch to 5, 000 profes s iona l s ta ff in our C hina -ba s ed offs hore
development centers a nd IT outs ourcing centers over next few yea rs . ”
K ings oft C orporation L imited K ings oft C orporation L imited a dded to Hang K ings oft C orpora tion L imited will be a dded to the Hang S eng C ompos ite Index.
(S E HK : 3888) S eng C ompos ite Index
C DC C orp. (Nas daqG S : C HIN.A) C DC C orp. Announces Una udited C DC C orp. announced una udited cons olida ted ea rnings res ults for the fourth quarter a nd full year ended December 31,
C ons olida ted E arnings R es ults for the F ourth 2009. F or the fourth qua rter of 2009, revenue wa s $83. 0 million compa red to $97. 0 million for the fourth qua rter of 2008. F or
Q ua rter a nd F ull Y ea r E nded December 31, the fourth qua rter of 2009, net income a ttributable to controlling interes t was $0. 3 million compa red to net los s attributa ble
2009; P rovides E a rnings G uida nce for the to controlling interes t of $81. 1 million or $0. 76 per ba s ic a nd diluted s ha re in the fourth qua rter of 2008. F or the qua rter
Y ea r 2010 opera ting income from continuing opera tions was $0. 5 million, income before income ta xes of $4. 9 million a nd income from
continuing opera tions of $1. 1 million compared to opera ting los s from continuing opera tions wa s $60. 5 million, los s before
income ta xes of $91. 1 million and los s from continuing opera tions of $89. 1 million or $0. 81 per bas ic and diluted s hare
reported in the s ame period las t year. In the fourth quarter of 2009, C DC C orpora tion a ls o recorded opera ting ca s h flow of
$6. 0 million, compared to $6. 8 million in opera ting ca s h flow in the fourth qua rter of 2008, marking nine cons ecutive
qua rters of pos itive operating ca s h flows . E xpenditure on purcha s e
of property, plant & equipment was $0. 35 million a gains t $0. 7 million reported las t year. F or the fourth quarter of 2009,
C DC C orpora tion reported Adjus ted E B IT DA from continuing opera tions or Adjus ted E B IT DA of $14. 0 million
compa red to Adjus ted E B IT DA for the fourth qua rter of 2008 of $9. 7 million.
F or the year 2010, the compa ny expects to report revenues between $352 million - $358 million, an increa s e of 10-12%
from $320. 1 million in 2009. Adjus ted E B IT DA a re expected between $48 million - $51 million, a n increa s e of 12-19%
from $42. 7 million in 2009.
Figure 7a. Key Developments

Source. Capital IQ
Page 9
K ey Developments
C ompany Headline Notes
NeuL ion Inc orporated (TS X: NL N) Duke Univers ity Athletics C hoos es NeuL ion NeuLion Inc. a nnounced a new multi-year partners hip with Duke Univers ity Athletics . T he a greement utilizes NeuL ion's
Incorpora ted as T icketing P rovider T ota l T icketing s olution for a ll ticket-ba s ed events a t Duke's athletic venues . NeuLion's turnkey ticketing s olution a llows
Duke, and its other college pa rtners , to ma nage its own ticketing program a nd acces s vita l informa tion like: full a ccount
profiles , purchas es , s ea t a vaila bility a nd invoicing. W ith this agreement, Duke replaces its previous ticketing provider with
NeuLion's s ervice, offering the opportunity to ma ximize ticket s a les and a ttenda nce while better s erving fa ns , donors a nd
alumni. T he ticketing s olution rounds out the other NeuL ion s ervices us ed by Duke Athletics including: W eb a nd V ideo
P ublis hing, Donor Ma na gement, O nline DV D S tore, W eb S trea ming and Auction. NeuL ion's S ports Media P latform ties da ta
for ticketing, web publis hing a nd donors into a s ingle da ta bas e -- a 'O ne F an P rofile. ' Integra ting thes e s olutions better
identifies cus tomers , ta rgets offers ba s ed on purchas es a nd rewards buying loya lty -- allowing Duke Univers ity Athletics to
ea s ily ma nage a nd grow its bus ines s .
P NI Digital Media Inc . (TS XV: PN) P NI Digita l Media Inc Appoints L awrence I. P NI Digital Media Inc. a nnounced the a ppointment of Mr. La wrence I. L erner a s Director, effective Ma rch 10th, 2010. Mr.
L erner as Director Lerner is the cha nge lea der currently res pons ible for growing s ervice lines a t US T G loba l, a lea ding provider of end-to-end
IT s ervices a nd s olutions for G lobal 1000 compa nies . His pra ctice a rea s include Ma nagement C ons ulting, Intera ctive a nd
Media Des ign, B us ines s Intelligence and Data W a rehous ing a nd B us ines s Ana lytics . Mr. L erner ha s s pent the la s t twenty
yea rs crea ting, growing a nd lea ding cutting edge S ervices a nd S trategy bus ines s units .
G eoS entric Oyj (HL S E : G E O1V) G eoS entric O yj La unches New App, G eoS entric O yj launched a new a pp na med T weets ii. T he a pp epitomizes the rea l time web a nd connects people with
T weets iitm pla ces a nd networks , by bridging the T witter experience with mobile s ocia l media , the s ocia l gra ph, loca tion, a nd contextua l
mobile-bas ed s earch: a ll in the pa lm of your hand, a cces s ible a nytime a nd a nywhere. Initia l a vailability will be in the Apple
Apps tore for iP hone and for the Android and B lackberry pla tforms . T weets iitm is a radical new way to us e s ocia l media and
the mobile Internet that breaks down the ba rrier between the rea l pla ce-ba s ed world a nd the digital world, providing a real
time connection between a us ers s ocial gra ph, pla ces a round them, and T witter. It is a rea l time app that s upports a mobile
lifes tyle, with us er crea ted tweets , ima ges , reviews , comments , checkins , tips , a nd more. It builds a n aggregated rea l world
index of pla ces , not a corporate crea ted index, with updates from T witter us ers a nd location-ba s ed s ervices , including
G yP S ii, G owa lla a nd F ourS qua re, a mong others . All content contributes to a pla ce-ba s ed index tha t delivers real time,
mobile, loca tion-s pecific content crea tion a nd s ea rch to
connect us ers with the people, places , a ctivities and idea s they're interes ted in. T he a pplica tion gives T witter us ers a
richer experience by allowing them to tweet, check-in, s end alerts , recommend tips , crea te places a nd geo-ta g them
with comments , photos a nd other rich media content. Upda tes ma de via T weets ii appea r in us ers ' T witter feed
ma king it s imple to s ha re content with friends a nd followers . It's inherently mobile, a nd in addition to the expected
T witter T imeline features , it delivers rea l-time "P la ceS trea ms " a nd "E ventS trea ms " to us ers , directly tied to their
loca tion and s ocial-gra ph connections .
P NI Digital Media Inc . (TS XV: PN) P NI Digita l Media Inc. Announces E xecutive P NI Digital Media announced the compa ny’s fis ca l 2009 Annua l G enera l Meeting which was held on Ma rch 10, 2010 where
Appointments s hareholders approved the election of Mes s rs . P eter F itzgerald, P eter S carth, C ory K ent, T homa s Neils on, S cott
B rowns tein, K yle Ha ll, Aa ron R a llo a nd R obert C his holm a s Directors .
R eal Value E s tates , Inc . (OTC B B : R VL U) R ea l V a lue E s ta tes , Inc. Announces R ea l V a lue E s tates , Inc. a nnounced tha t on March 9, P eter Ma tous ek tendered his res igna tion a s the compa ny’s pres ident.
Ma na gement C ha nges He will however, remain a s a director of the C ompany. C oncurrent with the res ignation of Mr. Matous ek, the B oa rd of
Directors a ppointed Dennis K us hner a s the company’s interim pres ident a nd chief executive officer. Mr. K us hner, a ge 64,
ha s general ma na gement, finance a nd opera tional experience having worked for F ortune 50 compa nies a s well a s s ma ll
ma nufa cturing, dis tribution and s ervice compa nies . He currently s erves a s the C hief F ina ncia l O fficer for O mega G enes is .
He a ls o s erves a s a Mana ging Director of C a ta pult As s ocia tes L LC .
G ravity C o., L td (Nas daqGM: G R VY) G ra vity C o. , L td Announces R agna rok O nline II G ra vity C o. Ltd. announced that R agnarok O nline II dela yed to the fourth qua rter of 2010. T he s chedule for the la unch of
Delayed to the F ourth Q uarter of 2010 R a gna rok O nline II, a s equel to R a gna rok O nline a nd ma s s ively multipla yer online role pla ying ga me, ha s been dela yed to
the fourth qua rter of 2010. R agnarok O nline II was origina lly s cheduled to launch in the firs t ha lf of 2010, however, G ra vity
ha s decided to pos tpone the s chedule to the fourth qua rter of 2010 in order to make the ga me better. T he compa ny is
pla nning to s ta rt commercia l s ervice of R agna rok O nline II in K orea in the fourth quarter of 2010 followed la ter by the other
territories where G ravity ha s a lready entered into licens e and dis tribution agreements . T he company ha s been conducting
open beta tes ting of R a gna rok O nline II s ince Ma y 2007 a nd continues to upgra de and develop the game in res pons e to
ma rket feedback received during the tes ting pha s e.
C DC C orp. (Nas daqG S : C HIN.A) C DC C orp. Announces Una udited C DC C orp. announced una udited cons olida ted ea rnings res ults for the fourth quarter a nd full year ended December 31,
C ons olida ted E arnings R es ults for the F ourth 2009. F or the fourth qua rter of 2009, revenue wa s $83. 0 million compa red to $97. 0 million for the fourth qua rter of 2008. F or
Q ua rter a nd F ull Y ea r E nded December 31, the fourth qua rter of 2009, net income a ttributable to controlling interes t was $0. 3 million compa red to net los s attributa ble
2009; P rovides E a rnings G uida nce for the to controlling interes t of $81. 1 million or $0. 76 per ba s ic a nd diluted s ha re in the fourth qua rter of 2008. F or the qua rter
Y ea r 2010 opera ting income from continuing opera tions was $0. 5 million, income before income ta xes of $4. 9 million a nd income from
continuing opera tions of $1. 1 million compared to opera ting los s from continuing opera tions wa s $60. 5 million, los s before
income ta xes of $91. 1 million and los s from continuing opera tions of $89. 1 million or $0. 81 per bas ic and diluted s hare
reported in the s ame period las t year. In the fourth quarter of 2009, C DC C orpora tion a ls o recorded opera ting ca s h flow of
$6. 0 million, compared to $6. 8 million in opera ting ca s h flow in the fourth qua rter of 2008, marking nine cons ecutive
qua rters of pos itive operating ca s h flows . E xpenditure on purcha s e
of property, plant & equipment was $0. 35 million a gains t $0. 7 million reported las t year. F or the fourth quarter of 2009,
C DC C orpora tion reported Adjus ted E B IT DA from continuing opera tions or Adjus ted E B IT DA of $14. 0 million
compa red to Adjus ted E B IT DA for the fourth qua rter of 2008 of $9. 7 million.
F or the year 2010, the compa ny expects to report revenues between $352 million - $358 million, an increa s e of 10-12%
from $320. 1 million in 2009. Adjus ted E B IT DA a re expected between $48 million - $51 million, a n increa s e of 12-19%
from $42. 7 million in 2009.
Figure 7b. Key Developments

Source. Capital IQ
Page 10
Valuation
Gaming companies lead market-cap charts: Eleven companies in our Web 2.0 universe top US$1 billion in market
capitalization (Figure 8). Sixty-two of the 97 companies have market caps under US$100 million, with 42 under US$25
million. Online gaming companies dominate the top of the list, led by Tencent Holdings (SEHK:700) with a market cap
of approximately US$39.4 billion.
Market C ap ($US mm)

Tencent Holdings Ltd. 39388.0
Neteas e.com Inc . 5174.4
Modern Times Group Mtg A B 3864.2
S handa Interactive Entertainment Ltd. 2892.6
Open Tex t Corp. 2784.2
Gree, Inc. 2762.5
IA C/InterA ctiveCorp. 2750.8
S ohu.com Inc. 2044.7
Perf ect World Co., Ltd. 1966.6
Giant Interactive Group, Inc . 1728.4
Changy ou.com Limited 1601.7
Mix i, Inc. 973.4
K ings of t Corporation Limited 911.3
Chines e G amer International 901.8
V alueClick, Inc. 832.8
NEOWIZ G ames Corporation 669.4
United Online, Inc. 626.2
S hutterfly , Inc. 586.5
S K Communications Co., Ltd. 482.0
CDC Corp. 302.5
NetDragon WebS of t, Inc. 299.1
GungHo Online Entertainment, Inc. 261.5
Gamania Digital Entertainment Co., Ltd. 233.4
Openw ave S y s tems Inc. 216.1
XING A G 202.8
My riad G roup A G 190.3
V elti Plc 188.5
The9 Limited 183.8
OA O R B C Inf ormation S y s tems 171.9
GigaMedia Ltd. 170.0
W ebz en Inc. 126.9
TheS treet.com, Inc. 117.6
DA DA S pA 116.5
A ctoz S oft Co., Ltd. 113.0
Fluid Mus ic Canada, Inc. 111.2
Tree.Com, Inc . 97.4
A Q Interactive, Inc. 91.9
Y D Online Corp. 86.1
HanbitS of t, Inc. 72.9
G ameOn Co Ltd. 71.7
S park Netw orks , Inc. 70.5
Frogs ter Interactive Pictures A G 69.6
Ngi Group Inc. 67.4
Cy berplex Inc . 62.1
G eoS entric Oy j 61.3
NeuLion Incorporated 60.5
G ravity Co., L td 55.0
PNI Digital Media Inc. 51.8
Quepas a Corp. 47.4
DXN Holdings B hd 44.5
Multiplied Media Corporation 31.1
NeX plore Corporation 27.9
DigitalTow n, Inc. 27.4
Neurotech Pharmaceuticals Co., L td. 26.5
S ocialw is e, Inc. 25.2
A s knet A G 24.8
Y nk K orea Inc. 19.1
Wiz z ard S oftw are Corporation 18.7
Unilava Corporation 17.0
Dolphin Digital Media, Inc. 15.9
A cceleriz e New Media, Inc. 15.8
LookS mart, Ltd. 15.6
Northgate Technologies Limited 14.3
J umbuck Entertainment Limited 11.1
MOK O.mobi Limited 10.8
is eemedia Inc. 10.6
V OIS , Inc . 10.0
S ahara Media Holdings , Inc. 9.3
Lingo Media Corporation 9.0
S NA P Interactive, Inc . 8.8
Worlds .com Inc. 8.0
Oriented Media Group B erhad 7.8
S pectrumDNA , Inc . 7.3
B right Things plc 7.2
R eal V alue Es tates , Inc. 6.6
En2Go International, Inc. 6.0
K ent International Holdings Inc. 6.0
K iw ibox .Com, Inc. 6.0
DigitalPos t Interactive, Inc. 5.0
B roadWebA s ia Inc. 3.4
UOMO Media, Inc 3.2
B etaw ave Corporation 2.9
Unis erve Communications Corp. 2.9
Mobile Data Corp. 2.4
B ey ond Commerce, Inc. 2.0
CornerW orld Corporation 1.9
B igs tring Corp. 1.4
eWorldCompanies , Inc. 0.9
W y nds torm Corporation 0.9
S pry logics International Corp 0.8
We-R -Y ou Corp. 0.3
Cody V entures Corporation 0.1
A s s ociated Media Holdings Inc . 0.1
The Parent Compa ny 0.0
Is e B lu Equity Corp. 0.0
S ocial Media V entures Inc. 0.0
InternetA rray , Inc. 0.0
0 1,000 2,000 3,000 4,000 5,000 6,000
Figure 8. Market Cap Ranking

Source. Capital IQ
1.5x.
0. 0
5. 0
10. 0
15. 0
20. 0
25. 0
30. 0
35. 0
40. 0
(x)
B etawav e C orpora tion
Ngi G roup Inc.
# Companies
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
As k net AG
Source. Capital IQ
Source. Capital IQ
AIM P erfect World C o., Ltd.
20.0 18.2
T he P arent C ompany
2 1
HLSE Northga te T echnologies L imited
14.8
C y berplex Inc.
3
SEHK
11.7
J umbuck E nterta inment Limited
ASX
7.0
T ree.C om, Inc .
Figure 9. TEV/Revenue Ranking

TSX Is e B lu E quity C orp.
Unis erv e C ommunica tions C orp.
0.0 0.10.2 0.20.20.30.4 0.40.4 0.50.5

OTCBB
6.7 6.7
W e-R -Y ou C orp.
GTSM G iga Media L td.
O penwa ve S ys tems Inc .
OTCPK
6.6 6.0
Ac toz S oft C o. , Ltd.
2 3 21 2 11 5
TSE DXN Holdings B hd
DADA S pA
XTRA IAC /InterActiveC orp.
2 1
SWX U nited O nline, Inc.
T heS treet.c om, Inc.
TSXV C DC C orp.
6 2
Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

AMEX Ha nbitS oft, Inc .
4.2 3.9 3.0 2.9 2.6

AQ Interactiv e, Inc.
6
KOSE
B eyond C ommerce, Inc .
OM O AO R B C Information S y s tems
0.60.60.60.6 0.70.80.80.80.90.9 1.0 1.0 1.0 1.1 1.1

InternetArra y, Inc .
1 1
OSE
C ornerWorld C orporation
KLSE G amania Digita l E ntertainment C o.,
Average TEV/LTM Revenue - By Exchange

NasdaqGS S pa rk Network s , Inc.
2.3 2.2 1.9 1.8 1.7

Y nk K orea Inc .
2 14 1
MICEX Y D O nline C orp.
V alueC lick , Inc.
1
CM
1.1 0.8
C ody V entures C orporation
are Canadian (average 2.6x revenue vs. 2.9x last week).

NasdaqGM NetDragon WebS oft, Inc.
S hutterfly, Inc .
4 1
BSE
0.7 0.3
S pry logic s International C orp
1.2 1.4 1.4 1.4 1.5 1.6 1.6 1.6 1.6 1.7 1.7
NeuLion Incorporated
G ungHo O nline E ntertainment, Inc.
P NI Digital Media Inc.
S NAP Intera ctive, Inc.
Modern T imes G roup Mtg AB
T E V/L T M R evenue (x)
(x) V elti P lc 1.9 1.9 2.12.2 2.32.4

S K C ommunica tions C o., Ltd.
X ING AG
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
# Companies
2.62.6
Webz en Inc .
United O riented Media G roup B erha d
2
S ohu. com Inc.
20.0 18.2
Kingdom
NE O WIZ G a mes C orpora tion
1
Finland
14.8
Myriad G roup AG
China U nila va C orporation
10
7.2
2.8 3.03.0 3.03.33.3
O pen T ex t C orp.
U O MO Media, Inc
2
Australia
7.0
W iz z ard S oftware C orporation
United is eemedia Inc.
41
5.2
States
3.83.9 4.2 4.3
Neurotec h P harmaceutica ls C o., Ltd.
3
Taiwan S ocia l Media V entures Inc .
Ac celeriz e New Media, Inc .
2
C hangy ou. com L imited
4.6 5.0 5.1
Germany
Mix i, Inc.
6
Japan DigitalP os t Interac tive, Inc .
4.6 3.9 3.8

K ings oft C orporation Limited
1
6.0 6.0 6.16.2
Lingo Media C orporation
3.0
Switzerland
7.6
F rogs ter Intera ctive P ictures AG

Canada As s oc ia ted Media Holdings Inc.
9.0
10
9.8
South G ree, Inc.
7
C hines e G amer Interna tiona l
11.8
Korea
MO K O . mobi Limited
13.5
1
Sweden G eoS entric O yj
14.8
F luid Mus ic C a na da, Inc .

18.2
2
Malaysia T encent Holdings L td.
2.6 2.3 2.2 1.8

27.3
Average TEV/LTM Revenue - By Country

eWorldC ompanies , Inc.
30.3
1
Russia B right T hings plc
34.2
B igs tring C orp.

38.0
1
Hong Kong
1.1 0.9
1
Italy
Page 11
States has the most companies (41), trading at an average of 5.2x revenue (vs. 6.2x last week) (Figure 11). Ten companies
number of companies (21), trading at an average multiple of 6.7x (vs. 11.2x last week). On a geographic basis, the United
TEV/Revenue (LTM) by country/exchange: We have also calculated multiples based on where the companies are listed
27.3x. The median is 1.7x. Note that we exclude multiples greater than 50x. Twenty-two companies have multiples under
TEV/Revenue (LTM) averages 4.9x: The overall average TEV/Revenue (LTM) multiple for our group is 4.9x (vs. 5.2x
plc (AIM:BGT) at 34.2x, eWorldCompanies, Inc. (OTCPK:EWRC) at 30.3x, and Tencent Holdings Ltd. (SEHK:700) at
or domiciled. Figure 10 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
last week) (Figure 9). Four companies trade above 25x revenue – Bigstring Corp. (OTCBB:BSGC) at 38.0x, Bright Things
1
India
0.8 0.3
Page 12
TEV/EBITDA (LTM) averages 10.7x: The average multiple for the 37 companies with positive EBITDA (and multiples
under 100x) is 10.7x LTM EBITDA (vs. 10.5x last week), led by SK Communications Co., Ltd. (KOSE:A066270) at 36.5x
(Figure 12). Eleven companies have EBITDA multiples under 7x. The median multiple is 9.1x (vs. 8.7x last week).
T E V/LT M E B IT DA (x)
40. 0
36. 5
35. 0
31.6
30. 0
25. 0
19. 7 20. 3
20. 0
16. 2 16. 7
15.1
15. 0 13. 6 13. 7 14. 0
12. 3 12. 4 13. 0
11. 0 11. 2
9. 1 9. 4 9. 5 9. 8
10. 0 7. 6 7. 9 8. 2 8. 2 8. 3 8. 4
5. 8 6. 4 6. 8 7. 0 7.2
5. 4
3. 9 4. 1
5. 0 2.6 3. 3
0. 3 0. 9
0. 0
NE O WIZ G ames C orporation

J umbuc k E ntertainment L imited
P NI Digital Media Inc .
G amania Digital E ntertainment C o. , Ltd.
G ungH o O nline E ntertainment, Inc .
C hines e G amer International

U nis erve C ommunic ations C orp.
O AO R B C Information S y s tems
DXN H oldings B hd
C hangy ou. c om L imited

C DC C orp.
Neurotec h P harmac eutic als C o. , L td.
T ree. C om, Inc .
S K C ommunic ations C o. , L td.

Modern T imes G roup Mtg AB
U nited O nline, Inc.
O pen T ex t C orp.
S NAP Interac tive, Inc.
T heS treet. c om, Inc.

K ings oft C orporation L imited
C y berplex Inc.
NetDragon WebS oft, Inc.
V alueC lic k , Inc.
S park Network s , Inc.
S ohu. com Inc.
Y D O nline C orp.
IAC /InterAc tiveC orp.
G ree, Inc.
Mix i, Inc.
XING AG
P erfec t World C o. , L td.
O penwave S y s tems Inc.
Y nk K orea Inc.
V elti P lc
S hutterfly , Inc.
DADA S pA
Ac toz S oft C o. , L td.
Figure 12. TEV/EBITDA Ranking

Source. Capital IQ
TEV/EBITDA (LTM) by country/exchange: Figure 13 shows the average TEV/EBITDA multiples by stock exchange.
The OTCBB has the largest number of companies (21), trading at an average multiple of 13.6x (vs. 6.3x last week). On a
geographic basis, the United States has the most companies (41), trading at an average of 12.3x EBITDA (vs. 11.7x last
week) (Figure 14). Ten companies are Canadian (average 8.1x EBITDA vs. 8.0x last week).
Average TEV/LTM EBITDA - By Country

Average TEV/LTM EBITDA - By Exchange
18.0
25.0 20.7
16.0 16.2
20.0 14.0
14.9
18.2 12.0 14.9 14.3
15.0 16.2
14.9 14.3 10.0 12.3
(x)
11.0
(x)
13.6
10.0 11.0 10.2 8.0 8.2 8.1
8.5 8.5 8.4 7.9
8.2 6.8 6.4 6.0 7.2
5.0 3.9 6.4
3.3 0.9
4.0
0.0 2.0 3.9 0.9
MICEX
OTCBB
NasdaqGM
GTSM
TSE
KOSE
SEHK
NasdaqGS
OSE
OM
CM
AMEX
KLSE
TSX
AIM
TSXV
ASX
0.0
Kingdom
Japan
United
Russia
Canada
Hong
China
Malaysia
Italy
South
Korea
Kong
States
Taiwan
Australia
Sweden
United
# Companies 4 5 1 6 2 21 2 3 14 6 1 1 2 1 2 3 2
# Companies 1 6 7 3 41 2 1 10 1 10 1 2 2
Figures 13 & 14. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ
Page 13
P/E (LTM) averages 21.7x: The average multiple for the 31 companies with positive earnings (and multiples under 100x)
is 21.7x LTM EPS (vs. 23.6x last week), led by HanbitSoft, Inc. (KOSE:A047080) with a 69.0x multiple (Figure 15). Twelve
companies have P/E multiples under 10x. The median is 15.2x (vs. 15.5x last week).
P /E L T M (x)
80. 0
68. 2 69. 0
70. 0
60. 0
53.0
48.6 49.7
50. 0
42.3
40. 0
33. 1 33. 1
29. 1
30. 0 27.2
24.2
22.5
19. 9 20. 4
20. 0
14.1 14.5 15.2 15. 3
7.8 8.7 9.5 11.1
10. 0 5. 2 5. 3 6. 7
2.8 4.4
1. 9 2.0 2.1
0. 0
0. 0
NE O WIZ G ames C orporation

J umbuc k E ntertainment L imited
G amania Digital E ntertainment C o. , L td.
G ungHo O nline E ntertainment, Inc .

C hines e G amer International
G iant Interactive G roup, Inc .
DXN Holdings B hd
G ameO n C o L td.
C hangy ou. c om L imited
C DC C orp.
G ravity C o. , Ltd
S handa Interac tive E ntertainment L td.
Neteas e. c om Inc.
United O nline, Inc.
O pen T ex t C orp.
S NAP Interac tive, Inc.

K ings oft C orporation L imited
XING AG
C y berplex Inc .
G igaMedia L td.
Y D O nline C orp.
V alueC lick , Inc .
NetDragon WebS oft, Inc .
S ohu. c om Inc .
G ree, Inc .
Mix i, Inc .
T enc ent Holdings L td.

P erfect World C o., L td.
HanbitS oft, Inc .

V elti P lc
Ac toz S oft C o. , L td.
Figure 15. P/E Ranking

Source. Capital IQ
P/E (LTM) by country/exchange: Figure 16 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (21), trading at an average multiple of 48.6x (vs. 27.0x last week). On a geographic basis,
the United States has the most companies (41), trading at an average of 24.1x earnings (vs. 34.3x last week) (Figure 17).
Ten companies are Canadian (average 23.8x EPS vs. 15.1x last week).
Average P/E - By Exchange Average P/E - By Country

40.0
60.0 35.9
49.7 35.0
50.0
48.6 30.0
40.0 39.1 29.3
34.2 25.0
24.1 23.8
31.3
(x)
30.0 22.5
(x)
25.7 20.0 20.4

22.5
20.0 15.0 19.4
12.6 15.3
10.0 5.3 5.2 4.4 2.1 10.0
0.0 5.2 4.4
0.0 5.0
OTCBB
GTSM
NasdaqGM
OSE
KOSE
SEHK
TSE
NasdaqGS
TSX
KLSE
NYSE
AIM
ASX
0.0
Japan
United
Canada
Kingdom
Hong
China
Malaysia
South
Korea
Kong
States
Taiwan
Australia
United
# Companies 1 21 6 3 5 2 2 14 3 2 2 1 4
# Companies 6 7 41 10 2 1 3 10 2 2
Figures 16 & 17. P/E Ranking (Exchange, Country)

Source. Capital IQ
Page 14
Upcoming Events
E arnings C alendar
C ompany Date Time Quarter C onf C all Details
Cyberplex Inc. (TSX:CX) 24-Mar-10 4:30 p.m. EST Q4/09 888-892-3255
Tree.Com, Inc. (NasdaqGM:TREE) 30-Apr-10 11:00 a.m. EST Q1/10 866-564-7440
Figure 18. Earnings Calendar

Source. Capital IQ
Page 15

Pric e P erformanc e
C ompany Name C urrenc y Tic ker E xc hange US D Market C ap ($m) C urrent P ric e 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 Week
A ccelerize New Media, Inc. US D AC L Z OT C B B 15.8 0.55 0. 0% -1.8% -15.4% -15.4% 175. 0% -31.3%
A ctoz S oft C o. , L td. KR W A052790 K OS E 113.0 14550.00 -4.3% -4.6% -29.4% -26.1% 30.5% -59.6%
A Q Interactive, Inc. JPY 3838 TS E 91.9 153100.00 -3.1% 46.1% 276.6% 193.9% 368. 2% -8.0%
A s knet AG E UR XT R A :A5A XT R A 24.8 3.60 11.5% 16.9% 8.1% 13.2% 27.2% -12.6%
A s s ociated Media H oldings Inc. US D AS MH OT C P K 0.1 0.00 -62.5% -70.0% -66.7% -78.6% 114. 3% -99.6%
B eta wave C orpora tion US D B W AV OT C B B 2.9 0.10 66.7% 0.0% 0.0% 42.9% -33. 3% -47.4%
B eyond C ommerce, Inc. US D B Y OC OT C B B 2.0 0.03 54.5% 36.0% -2.9% -81.6% -91. 9% -98.2%
B igs tring C orp. US D BSGC OT C B B 1.4 0.02 0. 5% -4.0% -10.0% 10.8% 35.0% -62.1%
B right T hings plc GB P AIM:B G T A IM 7.2 0.01 -3.3% -1.7% 20.4% 7. 3% -15. 7% -41.0%
B roadW ebA s ia Inc. US D BWBA OT C P K 3.4 0.04 0. 0% -33.3% -20.0% -82.6% -92. 2% -92.2%
C DC C orp. US D C H IN.A Nas da qG S 302.5 2.86 5. 9% 26.5% 20.2% 1. 4% 180. 4% -27.0%
C ha ngyou.com Limited US D C Y OU Nas da qG S 1, 601.7 31.06 -4.8% -7.8% -4.1% -24.3% NM -35.8%
C hines e G a mer International TWD G T S M:3083 GTS M 901.8 341.50 2. 4% 4.0% -19.4% -20.9% 100. 9% -34.2%
C ody V entures C orpora tion US D CVCP OT C P K 0.1 0.00 0. 0% 0.0% 172.7% 50.0% 650. 0% -72.7%
C ornerW orld C orpora tion US D CW R L OT C B B 1.9 0.02 -50.0% -33.3% -33.3% -66.7% -85. 7% -86.7%
C yberplex Inc. C AD T S X: C X TS X 62.1 0.92 0. 0% -2.1% -22.0% -25.8% 16.5% -53.8%
DADA S pA E UR C M:DA CM 116.5 5.26 2. 7% 7.3% -11.0% -25.4% 12.6% -35.8%
DigitalP os t Intera ctive, Inc. US D DG LP OT C B B 5.0 0.06 -10.9% 26.7% 7.5% -18.6% 1040.0% -42.4%
DigitalT own, Inc. US D DG T W OT C B B 27.4 1.00 0. 0% -20.0% -28.6% -42.9% -66. 7% -71.4%
Dolphin Digital Media, Inc. US D DP DM OT C B B 15.9 0.28 -6.7% -22.2% 12.0% -34.9% -59. 4% -63.2%
DXN Holdings B hd MY R DXN K LS E 44.5 0.65 -3.7% 1.6% 12.1% 12.1% 132. 1% -13.3%
E n2G o International, Inc. US D E TGI OT C B B 6.0 0.25 -37.5% -72.2% -51.0% -37.5% -91. 7% -95.0%
Neurotech P ha rmaceutica ls C o., Ltd. KR W A041060 K OS E 26.5 390.00 -6.0% -31.0% -31.6% -56.2% -30. 4% -66.4%
eW orldC ompa nies , Inc. US D EWRC OT C P K 0.9 0.00 100.0% 100.0% 0.0% -85.7% 100. 0% -94.7%
F luid Mus ic C anada, Inc. C AD T S X: F MN TS X 111.2 1.80 5. 9% 16.1% 2.3% 28.6% 414. 3% -16.3%
F rogs ter Intera ctive P ictures AG E UR FR G XT R A 69.6 19.90 -1.3% 5.3% 11.2% 8. 4% 193. 9% -7.4%
G amania Digita l E ntertainment C o., L td. TWD 6180 GTS M 233.4 48.45 -4.2% -1.1% -0.4% 2. 3% 57.8% -29.6%
G ameO n C o L td. JPY 3812 TS E 71.7 67100.00 -8.1% 9.3% 0.9% -34.9% -16. 1% -49.5%
G eoS entric Oyj E UR G E O1V H LS E 61.3 0.05 25.0% 25.0% 25.0% 0. 0% 25.0% -16.7%
G ia nt Interactive G roup, Inc. US D GA NY S E 1, 728.4 7.62 3. 3% 2.8% 2.8% 0. 4% 9.2% -20.4%
G igaMedia L td. US D G IG M Nas da qG S 170.0 3.12 -5.8% 3.2% -17.7% -41.7% -43. 9% -56.1%
G ra vity C o., Ltd US D GR VY Nas da qG M 55.0 1.98 -0.7% 4.2% 39.4% -3.4% 209. 4% -24.7%
G ree, Inc. JPY T S E :3632 TS E 2, 762.5 5530.00 -3.0% 14.3% 9.3% 21.9% 139. 9% -8.4%
G ungH o Online E ntertainment, Inc. JPY 3765 OS E 261.5 206600.00 -1.4% -6.1% 35.5% -20.2% 76.3% -26.2%
H anbitS oft, Inc. KR W A047080 K OS E 72.9 3775.00 -1.3% -5.2% -3.2% -11.6% 9.1% -43.1%
IAC /InterA ctiveC orp. US D IA C I Nas da qG S 2, 750.8 23.60 -1.6% 9.6% 24.1% 14.2% 60.3% -2.4%
InternetArray, Inc. US D INAR OT C P K 0.0 0.00 20.0% 20.0% 0.0% -77.8% -88. 0% -98.8%
Is e B lu E quity C orp. US D IS B L OT C P K 0.0 0.00 0. 0% 0.0% 0.0% 0. 0% 0.0% -90.0%
is eemedia Inc. C AD IE E T S XV 10.6 0.16 -13.9% -13.9% -13.9% 158.3% 55.0% -42.6%
J umbuck E ntertainment Limited AU D AS X: J MB AS X 11.1 0.25 -7.4% -19.4% -20.6% -32.4% -44. 4% -50.0%
K ent International Holdings Inc. US D K NT H OT C P K 6.0 1.69 -3.4% -6.6% -8.6% -3.4% 1.2% -31.0%
K ings oft C orpora tion L imited HK D 3888 S E HK 911.3 6.44 -1.8% 4.0% 16.2% -21.9% 118. 3% -32.0%
K iwibox.C om, Inc. US D K IW B OT C B B 6.0 0.01 -10.0% -32.5% -29.7% 50.0% -20. 6% -65.4%
L ingo Media C orpora tion C AD T S XV :LM T S XV 9.0 0.74 -17.8% -17.8% -17.8% -26.0% -9.8% -53.2%
L ookS mart, L td. US D LO OK Nas da qG M 15.6 0.91 -5.2% -6.2% -10.8% -24.2% -8.1% -41.7%
Mixi, Inc. JPY 2121 TS E 973.4 570000.00 0. 7% 10.3% -31.3% 3. 8% 75.4% -34.1%
Mobile Data C orp. US D MB Y L OT C B B 2.4 0.10 -9.1% -9.9% 100.0% 42.9% -60. 0% -75.0%
Modern T imes G roup Mtg AB SEK MT G B OM 3, 864.2 418.00 -2.3% 12.5% 27.9% 34.0% 196. 5% -3.4%
MO K O .mobi L imited AU D MK B AS X 10.8 0.10 0. 0% 0.0% -33.3% 42.9% 100. 0% -50.0%
Multiplied Media C orpora tion C AD T S XV :MMC T S XV 31.1 0.24 -11.1% NM NM NM NM -4.0%
Myriad G roup AG C HF MY R N S WX 190.3 4.58 -2.6% -0.2% -6.5% 2. 0% 14.5% -26.0%
NE O W IZ G ames C orporation KR W A095660 K OS E 669.4 36000.00 7. 5% 13.2% -17.1% -10.7% 77.8% -19.8%
NetDra gon W ebS oft, Inc. HK D 777 S E HK 299.1 4.39 -2.0% 4.5% 7.1% -27.8% 5.8% -38.6%
Netea s e. com Inc. US D NT E S Nas da qG S 5, 174.4 39.95 0. 5% 6.8% 7.9% -9.9% 79.1% -17.6%
NeuLion Incorpora ted C AD T S X: NL N TS X 60.5 0.53 3. 9% -23.2% -22.1% -49.0% 32.5% -59.2%
NeXplore C orpora tion US D NXP C OT C P K 27.9 0.50 -16.7% -23.1% -20.6% -9.1% -16. 7% -46.8%
Ngi G roup Inc. JPY 2497 TS E 67.4 49250.00 7. 3% 38.7% 103.1% 75.9% 180. 0% 0.0%
Northgate T echnologies Limited INR 590057 BSE 14.3 18.70 -10.7% -13.4% -35.1% -58.9% -42. 1% -68.8%
O AO R B C Information S ys tems R UB R BCI MIC E X 171.9 36.50 -0.8% 5.5% 2181. 3% 3376.2% 11306.3% -4.7%
O riented Media G roup B erha d MY R OME DIA K LS E 7.8 0.20 -4.9% 44.4% 62.5% 178.6% 2.6% -15.2%
O pen T ext C orp. US D OT E X Nas da qG S 2, 784.2 49.31 3. 1% 7.4% 30.4% 29.2% 49.4% -0.5%
O penwa ve S ys tems Inc. US D OP W V Nas da qG S 216.1 2.58 -5.8% 10.3% 17.3% -9.8% 186. 7% -17.6%
T he P a rent C ompany US D K IDS . Q OT C P K 0.0 0.00 -51.6% -85.0% -78.6% -86.4% -90. 0% -95.5%
P erfect W orld C o., Ltd. US D PWRD Nas da qG S 1, 966.6 39.47 2. 0% 6.4% -8.4% -10.4% 213. 8% -21.8%
P NI Digital Media Inc. C AD T S XV :P N T S XV 51.8 1.57 -6.5% -8.7% -17.4% -19.5% 1.3% -25.2%
Q uepa s a C orp. US D QP S A OT C B B 47.4 3.72 -5.8% 20.0% 66.8% 112.6% 272. 0% -11.4%
R ea l V alue E s tates , Inc. US D R V LU OT C B B 6.6 1.03 -6.4% -14.2% -6.4% NM NM -31.3%
S ahara Media H oldings , Inc. US D S HH D OT C B B 9.3 0.30 0. 0% 200.0% -46.4% NM -90. 0% -90.8%
S ha nda Interactive E nterta inment L td. US D S NDA Nas da qG S 2, 892.6 43.01 8. 2% -8.6% -18.1% -20.6% 26.8% -33.8%
S hutterfly, Inc. US D S F LY Nas da qG S 586.5 22.64 5. 7% 17.8% 27.2% 45.6% 171. 4% 2.3%
S K C ommunications C o. , L td. KR W A066270 K OS E 482.0 13050.00 -2.2% -5.8% 18.6% 43.9% 71.7% -29.1%
S NA P Intera ctive, Inc. US D S TVI OT C B B 8.8 0.27 80.0% 170.0% 305.0% 102.5% -14. 7% -17.3%
S ocial Media V entures Inc. US D S MV I OT C P K 0.0 0.00 -35.2% 59.1% -38.6% -96.5% -99. 7% -99.6%
S ocialwis e, Inc. US D S CLW OT C B B 25.2 0.52 -14.8% 16.9% 4.0% -8.8% 33.3% -49.0%
S ohu.com Inc. US D S O HU Nas da qG S 2, 044.7 54.14 1. 3% 12.2% -0.7% -23.7% 37.6% -25.1%
S pa rk Networks , Inc. US D LO V A ME X 70.5 3.42 1. 3% 12.6% 37.0% 55.6% 52.9% -1.6%
S pectrumDNA, Inc. US D S P XA OT C B B 7.3 0.15 36.4% 0.0% 7.1% -31.8% -21. 1% -66.7%
S prylogics Internationa l C orp C AD T S XV :S P Y T S XV 0.8 0.03 -25.0% 50.0% 200.0% 20.0% -33. 3% -33.3%
T encent H oldings Ltd. HK D 700 S E HK 39,388. 0 167.50 4. 2% 13.0% 3.8% 33.5% 217. 2% -5.1%
T he9 L imited US D NC T Y Nas da qG S 183.8 7.32 1. 1% 10.9% 3.4% -10.3% -44. 8% -55.6%
T heS treet.com, Inc. US D TS CM Nas da qG M 117.6 3.73 -0.5% 25.6% 68.8% 36.1% 89.3% -1.3%
T ree.C om, Inc. US D TR E E Nas da qG M 97.4 8.81 0. 1% 12.2% 1.8% 6. 9% 89.9% -32.6%
U nilava C orporation US D UNLA OT C B B 17.0 0.17 -48.5% -10.5% -51.4% NM NM -69.1%
U nis erve C ommunica tions C orp. C AD T S XV :US S T S XV 2.9 0.12 26.3% 14.3% 242.9% 71.4% 140. 0% -14.3%
U nited O nline, Inc. US D UNT D Nas da qG S 626.2 7.37 4. 1% 17.5% 5.6% -11.6% 87.5% -22.1%
U OMO Media, Inc US D UO MO OT C B B 3.2 0.04 -2.6% -7.5% -25.9% -71.5% -38. 3% -96.5%
V alueC lick, Inc. US D V CLK Nas da qG S 832.8 9.97 -1.8% 8.4% 3.9% -19.1% 38.5% -28.5%
V elti P lc GB P VEL A IM 188.5 3.34 -2.3% 2.1% 72.2% 103.7% 187. 9% -2.3%
V OIS , Inc. US D V O IS OT C B B 10.0 0.01 14.9% 11.1% 0.0% 122.2% 150. 0% -56.5%
W ebzen Inc. KR W K O S E : A069080 K OS E 126.9 12150.00 2. 5% -2.0% 3.0% -2.0% 34.9% -41.3%
W e-R -Y ou C orp. US D WE RU OT C P K 0.3 0.01 0. 0% 8.3% -35.0% -78.3% -78. 3% -96.6%
W izzard S oftwa re C orporation US D W ZE A ME X 18.7 0.35 15.7% -3.2% -14.6% -28.6% -18. 6% -54.2%
W orlds .com Inc. US D W DDD OT C B B 8.0 0.15 -40.0% 66.7% 66.7% 36.4% -16. 7% -44.4%
W ynds torm C orpora tion US D W Y ND OT C P K 0.9 0.05 0. 0% -50.0% 25.0% -50.0% -58. 3% -90.2%
XING A G E UR O1B C XT R A 202.8 28.60 -3.4% 0.7% -10.3% -11.5% 1.4% -24.7%
Y D Online C orp. KR W A052770 K OS E 86.1 6510.00 5. 9% 7.6% -5.7% -31.5% -20. 6% -47.5%
Y nk K orea Inc. KR W A023770 K OS E 19.1 2715.00 -1.3% -7.8% -13.3% -36.1% -27. 0% -68.8%
H igh 100.0% 200.0% 2181. 3% 3376.2% 11306.3% 2.3%
L ow -62.5% -85.0% -78.6% -96.5% -99. 7% -99.6%
Average 874.0 -0.6% 6.7% 38.8% 40.8% 202.9% -40.8%
Media n -1.5% 4.0% 0.0% -9.4% 32.9% -34.0%
Figure 19. Price Performance

Source. Capital IQ
Page 16

Valuation Multiples
P rimary US D Market TE V/L TM TE V/ NTM TE V/L TM TE V/NTM
C ompany Name S ec tor C ountry E xc hange Ticker C ap ($m) R evenue R evenue E B ITDA E B ITDA P /L TM E P S P /NTM E P S P /TangB V
Accelerize New Media, Inc. Direct Marketing U nited S ta tes OTCB B AC LZ 15.8 5.0x - - - - - -
Actoz S oft C o., Ltd. G aming S outh K orea K OS E A052790 113.0 0.6x - 2. 6x - 15.3x - 1.6x
AQ Intera ctive, Inc. G aming J apan TS E 3838 91.9 1.0x - - - - - 1.6x
As knet A G G aming G erma ny XT R A XT R A :A5A 24.8 0.2x - - - - - -
As s ocia ted Media Holdings Inc. G aming U nited S ta tes OTCP K AS MH 0.1 9.0x - - - - - -
B etawave C orpora tion Media U nited S ta tes OTCB B B W AV 2.9 0.0x - - - - - 2.0x
B eyond C ommerce, Inc. S ocial Networking U nited S ta tes OTCB B B YOC 2.0 1.0x - - - - - -
B igs tring C orp. Ins ta nt Mes s aging U nited S ta tes OTCB B BSGC 1.4 38.0x - - - - - -
B right T hings plc S ocial Networking U nited K ingdom AIM AIM:B G T 7.2 34.2x - - - - - 9.0x
B roadW ebAs ia Inc. S ocial Networking U nited S ta tes OTCP K BWBA 3.4 - - - - - - -
C DC C orp. G aming H ong K ong N as da qG S C HIN.A 302.5 0.9x - 7. 9x - 20.4x - 46.6x
C hangyou.com Limited G aming C hina N as da qG S C Y OU 1,601.7 5.1x - 8. 2x - 11.1x - 7.4x
C hines e G amer Interna tional G aming T a iwa n GTS M G T S M:3083 901.8 11.8x - 20.3x - 27.2x - 13.0x
C ody V entures C orporation G aming U nited S ta tes OTCP K CVCP 0.1 1.6x - - - - - -
C ornerW orld C orporation C ontent U nited S ta tes OTCB B CW R L 1.9 1.2x - - - - - -
C yberplex Inc. A dvertis ing C ana da TS X T S X: C X 62.1 0.4x - 3. 3x - 5.3x - 2.1x
DA DA S pA S ocial Networking Italy CM C M:DA 116.5 0.8x - 6. 4x - - - -
DigitalP os t Interactive, Inc. C ontent U nited S ta tes OTCB B DG L P 5.0 6.0x - - - - - -
DigitalT own, Inc. S ocial Networking U nited S ta tes OTCB B DG T W 27.4 - - - - - - -
Dolphin Digital Media, Inc. S ocial Networking U nited S ta tes OTCB B DP DM 15.9 - - - - - - -
DXN Holdings B hd S ocial Networking Mala ys ia K LS E DXN 44.5 0.7x - 3. 9x - 5.2x - 0.8x
E n2G o International, Inc. S ocial Networking U nited S ta tes OTCB B E TGI 6.0 - - - - - - -
Neurotech P ha rmaceuticals C o., L td. G aming S outh K orea K OS E A041060 26.5 4.3x - 9. 1x - - - 0.6x
eW orldC ompanies , Inc. G aming U nited S ta tes OTCP K E WRC 0.9 30.3x - - - - - -
F luid Mus ic C a nada, Inc. Media U nited S ta tes TS X T S X:F MN 111.2 18.2x - - - - - 7.8x
F rogs ter Interactive P ictures A G G aming G erma ny XT R A FR G 69.6 7.6x - - - - - 9.2x
G amania Digital E ntertainment C o., Ltd. G aming T a iwa n GTS M 6180 233.4 1.4x - 8. 3x - 24.2x - 2.9x
G ameO n C o Ltd. G aming J apan TS E 3812 71.7 - - - - 7.8x - 0.9x
G eoS entric Oyj Mobile F inland H LS E G E O1V 61.3 14.8x - - - - - -
G iant Interactive G roup, Inc. G aming C hina NY S E GA 1,728.4 - - - - 2.1x - 0.3x
G igaMedia Ltd. G aming T a iwa n N as da qG S G IG M 170.0 0.6x - - - 6.7x - 1.5x
G ravity C o., Ltd G aming S outh K orea N as da qG M GR VY 55.0 - - - - 0.0x - 0.0x
G ree, Inc. S ocial Networking J apan TS E T S E : 3632 2,762.5 9.8x - 16.7x - 33.1x - 17.3x
G ungH o O nline E nterta inment, Inc. Media J apan OS E 3765 261.5 1.9x - 8. 4x - 49.7x - 8.1x
Ha nbitS oft, Inc. G aming S outh K orea K OS E A047080 72.9 1.0x - - - 69.0x - 1.9x
IAC /InterActiveC orp. Media U nited S ta tes N as da qG S IAC I 2,750.8 0.8x - 14.0x - - - 1.5x
InternetA rray, Inc. Media U nited S ta tes OTCP K INA R 0.0 1.1x - - - - - -
Is e B lu E quity C orp. Media U nited S ta tes OTCP K IS B L 0.0 0.5x - - - - - -
is eemedia Inc. C ontent C ana da T S XV IE E 10.6 4.2x - - - - - 7.3x
J umbuck E ntertainment Limited S ocial Networking Aus tra lia AS X AS X:J MB 11.1 0.4x - 0. 9x - 4.4x - 0.9x
K ent Internationa l Holdings Inc. S ocial Networking U nited S ta tes OTCP K K NT H 6.0 - - - - - - 0.6x
K ings oft C orporation Limited G aming C hina S E HK 3888 911.3 6.1x - 15.1x - 19.9x - 4.8x
K iwibox.C om, Inc. S ocial Networking U nited S ta tes OTCB B K IW B 6.0 - - - - - - -
Lingo Media C orpora tion L earning C ana da T S XV T S XV : LM 9.0 6.2x - - - - - -
LookS ma rt, L td. Direct Marketing U nited S ta tes N as da qG M L OOK 15.6 - - - - - - 0.6x
Mixi, Inc. S ocial Networking J apan TS E 2121 973.4 6.0x - 19.7x - 53.0x - 6.2x
Mobile Da ta C orp. S ocial Networking U nited S ta tes OTCB B MB Y L 2.4 - - - - - - -
Modern T imes G roup Mtg AB Media S weden OM MT G B 3,864.2 2.2x - 16.2x - - - -
MOK O .mobi Limited S ocial Networking Aus tra lia AS X MK B 10.8 13.5x - - - - - 9.5x
Multiplied Media C orpora tion Mobile C ana da T S XV T S XV :MMC 31.1 - - - - - - -
Myriad G roup AG Mobile S witzerla nd SWX MY R N 190.3 3.0x - - - - - -
NE OW IZ G ames C orporation G aming S outh K orea K OS E A095660 669.4 3.0x - 11.2x - 33.1x - 16.7x
NetDra gon W ebS oft, Inc. G aming C hina S E HK 777 299.1 1.6x - 5. 4x - 14.5x - 1.6x
Netea s e.com Inc. G aming C hina N as da qG S NT E S 5,174.4 - - - - 2.8x - 0.7x
NeuLion Incorporated V ideo C ana da TS X T S X:NL N 60.5 1.7x - - - - - 7.9x
NeXplore C orporation C ontent U nited S ta tes OTCP K NXP C 27.9 - - - - - - -
Ngi G roup Inc. Media J apan TS E 2497 67.4 0.1x - - - - - 1.2x
Northgate T echnologies Limited Direct Marketing India BS E 590057 14.3 0.3x - - - - - -
O AO R B C Information S ys tems Media R us s ia MIC E X R BCI 171.9 1.1x - 8. 2x - - - -
O riented Media G roup B erhad Media Mala ys ia K LS E O ME DIA 7.8 2.8x - - - - - 3.4x
O pen T ext C orp. C ollabora tion C ana da N as da qG S OT E X 2,784.2 3.3x - 12.3x - 42.3x - -
O penwave S ys tems Inc. Mobile U nited S ta tes N as da qG S OP W V 216.1 0.6x - 13.0x - - - 2.9x
T he P a rent C ompany Mobile U nited S ta tes OTCP K K IDS .Q 0.0 0.2x - - - - - -
P erfect W orld C o., Ltd. G aming C hina N as da qG S PWRD 1,966.6 0.2x - 0. 3x - 2.0x - 0.9x
P N I Digital Media Inc. Digita l Ima ging C ana da T S XV T S XV :P N 51.8 1.9x - 7. 6x - - - 7.8x
Q uepa s a C orp. S ocial Networking U nited S ta tes OTCB B QP S A 47.4 - - - - - - -
R eal V a lue E s ta tes , Inc. Media Is ra el OTCB B R V LU 6.6 - - - - - - -
S a hara Media Holdings , Inc. Media U nited S ta tes OTCB B S HH D 9.3 - - - - - - 11.4x
S handa Interactive E nterta inment Ltd. G aming C hina N as da qG S S NDA 2,892.6 - - - - 1.9x - 0.3x
S hutterfly, Inc. Digita l Ima ging U nited S ta tes N as da qG S S FLY 586.5 1.6x - 12.4x - - - 2.9x
S K C ommunications C o., Ltd. S earch S outh K orea K OS E A066270 482.0 2.4x - 36.5x - - - -
S N AP Interactive, Inc. Dating U nited S ta tes OTCB B S TVI 8.8 2.1x - 13.6x - 48.6x - 4.7x
S ocial Media V entures Inc. Dating U nited S ta tes OTCP K S MV I 0.0 4.6x - - - - - -
S ocialwis e, Inc. S ocial Networking U nited S ta tes OTCB B S CLW 25.2 - - - - - - -
S ohu.com Inc. G aming C hina N as da qG S S O HU 2,044.7 3.0x - 7. 0x - 15.2x - 3.7x
S park N etworks , Inc. S ocial Networking U nited S ta tes AME X L OV 70.5 1.4x - 6. 8x - - - 11.8x
S pectrumDN A, Inc. Media U nited S ta tes OTCB B S P XA 7.3 - - - - - - -
S prylogics International C orp Media C ana da T S XV T S XV :S P Y 0.8 1.7x - - - - - -
T encent Holdings Ltd. P orta l C hina S E HK 700 39,388.0 27.3x - - - 68.2x - 30.3x
T he9 L imited G aming C hina N as da qG S NC T Y 183.8 - - - - - - 0.1x
T heS treet.com, Inc. Media U nited S ta tes N as da qG M TS CM 117.6 0.9x - 31.6x - - - 1.5x
T ree.C om, Inc. P orta l U nited S ta tes N as da qG M TREE 97.4 0.4x - 9. 8x - - - 1.9x
Unilava C orporation Media U nited S ta tes OTCB B U NLA 17.0 3.3x - - - - - 0.7x
Unis erve C ommunications C orp. S ocial Networking C ana da T S XV T S XV :US S 2.9 0.5x - 9. 4x - - - -
United Online, Inc. Media U nited S ta tes N as da qG S U NT D 626.2 0.8x - 4. 1x - 9.5x - -
UO MO Media, Inc Media C ana da OTCB B UO MO 3.2 3.8x - - - - - -
V a lueC lick, Inc. Media U nited S ta tes N as da qG S V CLK 832.8 1.6x - 5. 8x - 14.1x - 4.0x
V elti P lc Media U nited K ingdom AIM VEL 188.5 2.3x - 11.0x - 22.5x - 6.4x
V O IS , Inc. S ocial Networking U nited S ta tes OTCB B V OIS 10.0 - - - - - - -
W ebzen Inc. G aming S outh K orea K OS E K OS E :A069080 126.9 2.6x - - - - - 1.2x
W e-R -Y ou C orp. G aming U nited S ta tes OTCP K WERU 0.3 0.6x - - - - - -
W izzard S oftware C orporation P odca s ting U nited S ta tes AME X W ZE 18.7 3.9x - - - - - -
W orlds .com Inc. C ontent U nited S ta tes OTCB B W DDD 8.0 - - - - - - -
W ynds torm C orporation C ontent U nited S ta tes OTCP K W Y ND 0.9 - - - - - - -
XIN G AG S ocial Networking G erma ny XT R A O1B C 202.8 2.6x - 9. 5x - 29.1x - 6.2x
Y D Online C orp. G aming S outh K orea K OS E A052770 86.1 1.5x - 7. 2x - 8.7x - 2.6x
Y nk K orea Inc. G aming S outh K orea K OS E A023770 19.1 1.4x - 13.7x - - - 0.6x
High 39,388.0 38.0x - 36.5x - 69.0x - 46.6x
Low 0.0 0.0x - 0. 3x - 0.0x - 0.0x
Average 874.0 4.9x - 10.8x - 21.7x - 5.8x
Median 53.4 1.7x - 8. 7x - 15.2x - 2.9x
Figure 20. Valuation Comparison

Source. Capital IQ
Page 17

S ummary by C ountry
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %
United S tates 29 C hina 56, 945. 8 C hina 5,694. 6 C hina 4,496. 8 C hina 2, 262. 8 C hina 49. 0%
C hina 10 U nited S ta tes 5, 465. 2 S weden 3,266. 2 United S tates 3,752. 1 United S tates 393. 7 A us tralia 42. 8%
C a na da 9 J a pan 4, 440. 9 J apan 740. 1 S weden 1,942. 0 S weden 274. 4 T aiwan 37. 3%
S outh K orea 9 S weden 3, 266. 2 T aiwan 515. 6 C a na da 992. 4 J a pa n 213. 0 J apan 24. 3%
J a pa n 6 C anada 2, 538. 6 C anada 282. 1 S outh K orea 740. 1 C a na da 199. 5 S outh K orea 20. 1%
T a iwa n 3 S outh K orea 1, 845. 8 Hong K ong 237. 5 J a pa n 680. 8 S outh K orea 133. 5 S weden 14. 1%
G erma ny 3 T a iwa n 1, 546. 9 S witzerla nd 205. 8 T a iwa n 404. 6 T a iwa n 65. 0 Italy 13. 1%
Aus tralia 2 G ermany 318. 0 S outh K orea 205. 1 Hong K ong 334. 2 Ita ly 31. 0 R us s ia 13. 1%
S witzerla nd 1 Hong K ong 237. 5 R us s ia 193. 9 Ita ly 236. 1 R us s ia 20. 4 Hong K ong 6. 0%
India 1 S witzerla nd 205. 8 U nited S ta tes 188. 5 G erma ny 171. 4 Hong K ong 20. 0 S witzerla nd 5. 4%
F inla nd 1 R us s ia 193. 9 Ita ly 136. 8 R us s ia 156. 3 G erma ny 9. 7 G ermany -7. 4%
United K ingdom 1 Ita ly 136. 8 G ermany 106. 0 Ma lays ia 78. 5 Aus tralia 4. 9 C anada -10. 6%
Ita ly 1 F inland 51. 3 F inland 51. 3 S witzerla nd 63. 0 S witzerla nd 3. 4 U nited S ta tes -15. 4%
Hong K ong 1 Malays ia 36. 4 Malays ia 36. 4 India 47. 7 United K ingdom -2. 7 F inland NA
S weden 1 Aus tralia 29. 4 India 20. 2 Aus tralia 17. 8 F inla nd -18. 5 India NA
R us s ia 1 India 20. 2 Aus tralia 14. 7 F inla nd 4. 5 India -51. 2 U nited K ingdom NA
Ma lays ia 1 U nited K ingdom 5. 6 U nited K ingdom 5. 6 United K ingdom 0. 0 Ma lays ia -85. 2 Mala ys ia NA
G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%
Figure 21. Comparison by Country

Source. Capital IQ

S ummary by E xc hange
C ompany Name US D Market C ap ($m) Avg US D Market C ap ($m) US D L TM Total R ev ($m) US D L TM Total E B ITDA ($m) E B ITDA %
OT C B B 16 S E HK 40, 705. 3 S E HK 13,568. 4 OM 1,942. 0 Na s daqG S 1, 918. 2 NY S E 68. 2%

Na s daqG S 14 Nas da qG S 22, 230. 0 OM 3,266. 2 S E HK 607. 9 S E HK 897. 1 AS X 42. 8%
K OS E 8 TS E 4, 129. 4 NY S E 1,594. 3 Na s daqG S 508. 5 OM 274. 4 S E HK 40. 6%
T S XV 5 OM 3, 266. 2 Nas da qG S 1,587. 9 CM 236. 1 TS E 187. 1 GTS M 37. 3%
TS E 5 K OS E 1, 799. 1 TSE 825. 9 NY S E 202. 3 NY S E 137. 9 Nas da qG S 30. 7%
Na s daqG M 4 NY S E 1, 594. 3 GTS M 684. 0 RTS 156. 3 K OS E 115. 4 TSE 24. 7%
TS X 3 GTS M 1, 368. 0 OS E 311. 5 OS E 116. 4 GTS M 65. 0 OS E 22. 3%
XT R A 3 XT R A 318. 0 K OS E 224. 9 TS E 112. 9 CM 31. 0 K OS E 18. 2%
OT C P K 3 OS E 311. 5 SWX 205. 8 GTS M 110. 5 OS E 25. 9 OM 14. 1%
S E HK 3 TS X 253. 3 R TS 193. 9 Na s daqG M 97. 3 Na s daqG M 25. 2 CM 13. 1%
AME X 2 Nas da qG M 237. 6 CM 136. 8 K OS E 86. 1 RTS 20. 4 R TS 13. 1%
AS X 2 SWX 205. 8 XT R A 106. 0 K LS E 78. 5 XT R A 9. 7 T S XV 9. 0%
GTS M 2 R TS 193. 9 TSX 84. 4 SWX 63. 0 AME X 6. 0 Nas da qG M 8. 6%
SWX 1 OT C B B 166. 1 Nas da qG M 59. 4 XT R A 57. 1 AS X 4. 9 S WX 5. 4%
HL S E 1 CM 136. 8 HLS E 51. 3 BSE 47. 7 SWX 3. 4 XT R A -7. 4%
CM 1 T S XV 97. 3 AME X 40. 0 TS X 46. 5 AIM -2. 7 A ME X -27. 7%
BS E 1 AME X 79. 9 K LS E 36. 4 AME X 26. 4 TS X -7. 0 TSX -35. 8%
OS E 1 HLS E 51. 3 BS E 20. 2 AS X 8. 9 T S XV -7. 2 OTCB B -48. 2%
NY S E 1 OT C P K 48. 8 T S XV 19. 5 T S XV 8. 6 OT C P K -17. 9 OTCP K NA
AIM 1 K LS E 36. 4 OT C P K 16. 3 HL S E 4. 5 HL S E -18. 5 A IM NA
OM 1 AS X 29. 4 AS X 14. 7 OT C B B 2. 4 BSE -51. 2 BSE NA
RTS 1 BS E 20. 2 OT C B B 10. 4 OT C P K 0. 6 OT C B B -58. 3 HLS E NA
K LS E 1 AIM 5. 6 AIM 5. 6 AIM 0. 0 K LS E -85. 2 K LS E NA
G rand Total 80 G rand Total 77,284.4 G rand Total 966.1 G rand Total 14,118.5 G rand Total 3,473.8 G rand Total 11.8%
Figure 22. Comparison by Exchange

Source. Capital IQ
Page 18
Financing - L as t Three Months (US $ m)

F in. Amount (Million) Type of financing
Month C ompany Name C ountry Angel/S eed Debt financ ing S eries A S eries B S eries C S eries D S eries E G rand Total
J an-10 Quantcas t US A 27. 5 27.5
P aymo US A 25. 0 25.0
Yelp US A 25. 0 25.0
Vis ible Technologies US A 22. 0 22.0
G uvera A us tralia 20. 0 20.0
6 W aves C hina 17. 5 17.5
S piceworks US A 16. 0 16.0
S MS G upS hup India 12. 0 12.0
Aggregate K nowledge US A 9. 0 9. 0
F lurry US A 7. 0 7. 0
B uyWithMe US A 5. 5 5. 5
G aikai Netherla nds 5. 0 5. 0
L ivingS oc ial US A 5. 0 5. 0
Apis phere US A 4. 6 4. 6
E yeka F ra nce 4. 3 4. 3
B eezag US A 2. 5 2. 5
J elli US A 2.0 2. 0
S way US A 2. 0 2. 0
OneF orty US A 2. 0 2. 0
B lippy US A 1.6 1. 6
G raphic .ly US A 1. 2 1. 2
XIHA F inla nd 1.0 1. 0
S oc ialG O US A 0.8 0. 8
J oonto US A 0. 6 0. 6
Drimmi R us s ia
J an-10 Total 5.4 40.9 28.3 97.5 22.0 25.0 219.1
F eb-10 Ngmoc o US A 25. 0 25.0

B lue K ai US A 21. 0 21.0
W ebVis ible US A 20. 0 20.0
TidalTV US A 16. 0 16.0
Avvas i C a na da 14. 1 14.1
F lixs ter US A 12. 5 12.5
Yodle US A 10. 0 10.0
B rightR oll US A 10. 0 10.0
Yammer US A 10. 0 10.0
C urrens ee US A 8. 0 8. 0
TuneWiki US A 7. 0 7. 0
Vivox US A 6. 8 6. 8
Moons hoot US A 6. 6 6. 6
F ynanaz US A 6. 5 6. 5
E verys c ape US A 6. 0 6. 0
P urs way Is ra el 6. 0 6. 0
E ffec tive Meas ure A us tralia 4. 0 4. 0
C ognitive Match UK 2. 5 2. 5
Vook US A 2.5 2. 5
S crapblog US A 2. 5 2. 5
S milebox US A 2. 0 2. 0
P ros per.c om US A 2.0 2. 0
K ODA US A 1.5 1. 5
B ackupify US A 0.9 0. 9
R anker US A 0.8 0. 8
Apps F ire F ra nce
F eb-10 Total 5.7 2.0 23.1 59.6 103.8 10.0 204.1
Mar-10 L ivingS oc ial US A 25. 0 25.0

DataXu US A 11. 0 11.0
L uc id Imagination US A 10. 0 10.0
Hunc h US A 10. 0 10.0
NetB as e US A 9. 0 9. 0
TripIt US A 7. 0 7. 0
S eaWell Networks C a na da 6. 8 6. 8
P os terous US A 4. 4 4. 4
S martdate F ra nce 2.2 2. 2
C homp US A 2. 0 2. 0
B it.ly US A 1.5 1. 5
C ardagin Networks US A 1. 0 1. 0
B urbn US A 0.5 0. 5
Mar-10 Total 2.7 1.5 14.2 63.0 9.0 90.4
G rand Total 13.8 3.5 78.2 150.9 210.3 32.0 25.0 513.7
Figure 23. Financing, Last Three Months

Page 19
C ompany Des c riptions - C urrent Month C apital Market Ac tivity

C ompany HQ Webs ite Des cription
Adenyo C a nada www. adenyo. com O ur s olutions enable our cus tomers to integrate the mobile cha nnel into their marketing a nd advertis ing mix and capitalize on its unique
opportunities . T hrough the integration of leading-edge technologies and s pecialized expertis e, Adenyo enables high-performa nce, interactive
mobile marketing and advertis ing for agencies , media companies , brands and corporate ma rketers and s mall to medium-s iz ed bus ines s es .
B it.ly US A bit. ly B itly, Inc. operates a s an utility that allows us ers to s horten the length of an uniform res ource loca tor and then track the res ulting us age. It
a llows us ers to s horten, s ha re, and track links . T he company was founded in 2007 and is bas ed in New Y ork, New Y ork.
B urbn www. burbn. com B urbn, Inc. offers internet bas ed s ocia l networking s ervices . T he company was founded in 2009 and is bas ed in the United S tates .
C ardagin Networks US A www. cardagin. com C arda gin Networks Inc. develops mobile marketing platform for cons umers and retailers . T he company, through its mobile advertis ing
platform, enables s ma ll and local bus ines s es to digitiz e their loyalty programs , dis s eminate targeted advertis ements to exis ting and repeat
cus tomers , monitor cus tomer habits , and collect da ta for bus ines s us es . T he compa ny is bas ed in C harlottes ville, V irginia .
C homp www. compapps . com C homp Inc. promotes and reviews iP hone/iP od T ouch applications . It offers C homp C onnect that lets application developers prompt their
us ers to review their applications . T he company was founded in 2009 and is ba s ed in S an F rancis co, C a lifornia .
DataXu US A www. dataxu. com DataX u, Inc. provides an advertis ement optimization and bidding platform for online dis pla y advertis ers . T he company’s platform engages in
valuing, bid managing, and buying advertis ements on an impres s ion-by-impres s ion bas is acros s the advertis ement exchanges operated by
G oogle, Y ahoo, and others . It als o offers advertis ers with cons umer and bra nd ins ights , including na nos egment reports that identify the key
context, a nd cons umer a nd creative attributes ; performance reporting and a nalys is s ervices ; and real-time bidding s ervices . DataXu, Inc. wa s
founded in 2007 and is bas ed in C a mbridge, Ma s s achus etts with an additional office in New Y ork, New Y ork.
G yPS ii Netherlands www. gyps ii. com G yP S ii connects people, places , communities , content a nd advertis ing a cros s network s and devices , with patented and patent applied-for
technologies for the trans fer and publis hing of location bas ed informa tion between mobile devices . G yP S ii provides apps and Open AP I
s olutions to a wide range of companies , s uch as S ams ung, LG , R IM, W ind R iver, G a rmin, C hina Unicom, C hina Mobile, C hina T elecom, and
others . G yP S ii apps are ava ilable on Apple’s iP hone, S ymbian, W indows Mobile, R IM B lackberry, Android, J ava, MID/L inux, P a lm webOS ,
a nd acces s ible via mos t well-k nown mobile app s tores .
Hunch US A www. hunch. com Hunch, Inc. operates a decis ion-ma king s ite that cus tomiz es decis ion res ults for the us er. It as ks ques tions and cus tomiz es res ult to make
various decis ions . T he company was incorporated in 2007 and is bas ed in New Y ork, New Y ork.
L ivingS oc ial US A www. livings ocial. com L ivingS ocial offers a collection of us er-review apps acros s the mos t popular s ocial networks (F a cebook, MyS pace, Hi5, B ebo, and O rkut).
T he apps are des igned to let people organize and dis cover their favorite book s , movies , mus ic, res taurants , games , a nd beer.
L ucid Imagination US A www. lucidima gination. com L ucid Imagination, Inc. provides s upport, training, cons ulting, and s oftwa re s olutions . It offers certified dis tributions , s upport s ubs criptions ,
training and certification, and education programs through the Lucid Imagination knowledge portal. T he company als o provides LucidG az e
for S olr, an open s ource vis ual framework for monitoring S olr performance; and Lucid S earch Health C heck, a s et of s ervices that
periodically a s s es s es the us e of Lucene or S olr in a s earch application. It offers its s ervices for the Apache Lucene s earch library and
Apache S olr s earch s erver, which a re us ed in commercial, government, and educational ins titutions . Lucid Ima gination, Inc. was founded in
2007 and is bas ed in S an Mateo, C alifornia.
Multicas t Media US A www. multicas tmedia . com Multica s t Media T echnologies , Inc. provides live Internet broadca s ts and on-demand video s olutions . T he compa ny provides online media
s olution for the deployment of linear, live or on demand, and interactive media channels . It adds live s treaming and on-demand video for the
iP hone and iP od T ouch to its hos ted Multicas t Media S uite s olution. T he company’s digital media infras tructure ena bles content producers to
dis tribute and monetiz e content via the Internet. It als o enables online channels to target audiences by offering an integra ted s ys tem for the
management of digital content, program s cheduling, and interactive audio/video broadca s t s ervices . Multicas t Media T echnologies , Inc. wa s
founded in 2000 and is headquartered in Atlanta , G eorgia .
NetB as e US A www. netbas e. com NetB as e’s C ontent Intelligence technology reads every s entence ins ide documents , linguis tically unders tands the content and powers s earch
experiences that deliver highly relevant ans wers and ins ights .
P os terous US A www. pos terous .com P os terous , Inc. operates a W ebs ite to blog and s ha re photos on the Internet. It als o enables to s hare thoughts , photos , audio, video, and
files with friends and family. P os terous , Inc. was founded in 2008 and is bas ed in S an F rancis co, C alifornia.
S af-T-Net US A www. alertnow. com S af-T -Net develops and mark ets AlertNow, a technology for communicating with large audiences , s uch a s the parents of s chool children.
AlertNow delivers voice, e-mail and emergency S MS mes s ages a t a ra te up to 2. 5 million per hour – quickly keeping parents and s taff
informed on important a nd time-s ens itive informa tion. In addition to delivering routine mes s aging, AlertNow is a critical component to every
cris is pla n, ens uring accurate information is communicated immedia tely in the event of a lockdown, relocation, evacuation or other
emergency s ituation.
S eaWell Networks C a nada www. s eawellnetworks . com S eaW ell Networks Inc. provides technology for the dis tribution and delivery of Internet video. It offers video hos ting a nd dis tribution s olutions
for content delivery networks and other video hos ting companies . T he company is bas ed in Mis s is s auga, C a nada.
S martdate F rance www. s ma rtdate. com S martdate S AS is an online dating pla tform. T he company enables us ers to s earch friends through F acebook and other s ocial networks
connectivity. It offers its s ervices in F rench, E nglis h, G erman, Italian, Dutch, and S panis h langua ges . T he company was incorporated in 2009
a nd is bas ed in P aris , F rance.
TellAP al US A www. tellapa l. com T ell-A-P al, Inc. provides a s ocial advertis ing platform for online marketing s ervices . T he compa ny was founded in 2006 and is bas ed in S an
F rancis co, C alifornia.
TripIt US A www. tripit. com T ripIt, Inc. provides online travel itinerary organiz ation a nd trip planning s ervices . T he company offers online flights , hotels , rental ca rs , tra ins ,
a nd cruis es information and booking s ervices . T ripIt, Inc. was founded in 2006 and is bas ed in S an F rancis co, C alifornia.
Figure 24. Company Descriptions

Source. Company reports, Capital IQ, Crunchbase
Page 20
RELEVANT DISCLOSURES APPLICABLE TO: NONE
1. None applicable.
ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the
recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii)
no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or
recommendations expressed in this research report.
This report has been created by Analysts that are employed by Mackie Research Capital Corporation, a Canadian Investment Dealer. For further disclosures, please see last page of this report.
I n f o r ma t i o n a b o u t M a cki e Re s e a r ch C a p i t a l C o r p o r a t i o n ’ s Ra t i n g S y st e m , t h e d i s t r i b u t i o n o f o u r r e s e a r c h t o c l i e n t s a n d t h e p e r ce n t a g e o f r e c o mme n d a t i o n s wh i ch a r e i n
e a c h o f o u r r a t i n g ca t e g o r i e s i s a va i l a b l e o n o u r we b s i t e a t ww w. ma c k i e r e se a r ch . co m.
T h e i n f o r ma t i o n c o n t a i n e d i n t h i s r e p o r t h a s b e e n d r a wn f r o m s o u r c e s b e l i e v e d t o b e r e l i a b l e b u t i t s a c c u r a c y o r c o mp l e t e n e s s i s n o t g u a r a n t e e d , n o r i n p r o vi d i n g i t d o e s
M a c k i e R e se a r c h C a p i t a l C o r p o r a t i o n a s s u me a n y r e sp o n si b i l i t y o r l i a b i li t y. M a c ki e R e s e a r ch C a p i t a l C o r p o r a t i o n , i t s d i r e c t o r s , o f f i c e r s a n d o t h e r e mp l o y e e s ma y , f r o m
t i me t o t i me , h a v e p o si t i o n s i n t h e s e c u r i t i e s me n t i o n e d h e r e i n . C o n t e n t s o f t h i s r e p o r t c a n n o t b e r e p r o d u c e d i n wh o l e o r i n p a r t wi t h o u t t h e e xp r e s se d p e r mi s si o n o f
M a c k i e R e se a r c h C a p i t a l Co r p o r a t i o n . ( U . S. I n st i t u t i o n a l Cl i e n t s — R e se a r ch C a p i t a l U. S . A . I n c. ( a wh o l l y o wn e d s u b si d i a r y o f M a c ki e R e s e a r c h C a p i t a l C o r p o r a t i o n )
a c c e p t s r e s p o n si b i l i t y f o r t h e c o n t e n t s o f t h i s r e p o r t s u b je c t t o t h e t e r ms & l i mi t a t i o n s s e t o u t a b o v e . F i r ms o r i n s t i t u t i o n s r e c e i vi n g t h i s r e p o r t s h o u l d e f f e c t t r a n s a ct i o n s
i n s e cu r i t i e s d i s cu s s e d i n t h e r e p o r t t h r o u g h R e se a r c h C a p i t a l U. S . A . I n c. , a Br o ke r - D e a l e r R e g i s t e r e d wi t h t h e U n i t e d S t a t e s S e c u r i t i e s a n d E xc h a n g e C o m mi s si o n ) .
Toronto 416.860.7600 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.218.6375 Regina 306.566.7550 St. Albert 780-460-6460
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SOFTWARE & SERVICES 16 MARCH 2010

David Shore, CFA, MBA 416.860.6784

Despite Jittery Markets, VC Funding Pace Steady

Financing Activity Last Twelve Months

*May-09 includes $200m FB investment Total Average

The Web 2.0 Universe

C omparable C ompany Analys is > Web 2.0

Figure 1. Web 2.0 Universe Summary

Capital Markets Activity (M&A and Financing)

Financing Activity Last Twelve Months

*May-09 includes $200m FB investment Total Average

Figure 2. Financings, Last Twelve Months

Financing & M/A Summary - Last Three Months

Decision Maker Media

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

Capital Markets Activity (Price Performance)

Web 2.0 Index Price Performance

Figure 5. Web 2.0 Price Performance

1 Week P rice P erformance

Figure 6. 1-Week Price Performance

Public Company Industry News (Partnerships, Financial Results, New Products)

Figure 7a. Key Developments

Figure 7b. Key Developments

Market C ap ($US mm)

Figure 8. Market Cap Ranking

Figure 9. TEV/Revenue Ranking

0.0 0.10.2 0.20.20.30.4 0.40.4 0.50.5

Figures 10 & 11. TEV/Revenue Ranking (Exchange, Country)

4.2 3.9 3.0 2.9 2.6

0.60.60.60.6 0.70.80.80.80.90.9 1.0 1.0 1.0 1.1 1.1

Average TEV/LTM Revenue - By Exchange

2.3 2.2 1.9 1.8 1.7

are Canadian (average 2.6x revenue vs. 2.9x last week).

(x) V elti P lc 1.9 1.9 2.12.2 2.32.4

Neurotec h P harmaceutica ls C o., Ltd.

4.6 3.9 3.8

Lingo Media C orporation

F rogs ter Intera ctive P ictures AG

South G ree, Inc.

F luid Mus ic C a na da, Inc .

2.6 2.3 2.2 1.8

Average TEV/LTM Revenue - By Country

B igs tring C orp.

NE O WIZ G ames C orporation

P NI Digital Media Inc .

G amania Digital E ntertainment C o. , Ltd.

G ungH o O nline E ntertainment, Inc .

C hines e G amer International

C hangy ou. c om L imited

Neurotec h P harmac eutic als C o. , L td.

T ree. C om, Inc .

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

S NAP Interac tive, Inc.

T heS treet. c om, Inc.

NetDragon WebS oft, Inc.

V alueC lic k , Inc.

S park Network s , Inc.

S ohu. com Inc.

IAC /InterAc tiveC orp.

O penwave S y s tems Inc.

Figure 12. TEV/EBITDA Ranking

Average TEV/LTM EBITDA - By Country