SOFTWARE & SERVICES 3 FEBRUARY 2009

DAVID SHORE, CFA, MBA 416.860.6784

WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666

VIDEO SITES LEAD BUSIEST FINANCING MONTH SINCE APRIL 2008

S UMM AR Y
W e have identified 80 public companies for our Web 2.0 universe with a combined market cap of almost $25 billion.
These include a wide variety of companies, including MMOG (Massive Multi-Player Online Gaming) companies, social
networking software companies, media sharing companies, and social lending companies. The average market cap for
the group is over $300 million, with average trailing revenue of $100 million. The companies are also highly profitable
with an average EBITDA margin of 17.6%. On a valuation basis, the overall average is 4.0x trailing revenue and 9.4x
trailing EBITDA. Seventeen of the companies have more than 500 employees.

CA P IT AL M AR K ET A CT I V IT Y
After 18 financings in December totalling $122.1 million (average $6.8 million), January has been the busiest month
since April 2008, with 29 financings totalling $199.5 million (average $6.9 million). The largest financing in the last
three months was of HuffingtonPost for $25.0 million in November (Figure 2). Ten companies raised more than $10
million each in January – with AdMob the largest at $12.5 million.

Financing by Sector - January 2009

60.0

50.0

40.0
(US$m)

30.0

51.7

20.0 38.5

10.0 20.0

12.0 12.0 11.5 11.4 11.0 10.0

6.5 6.2 5.0
2.5 1.2
0.0
Crowdsourced Content
Ad Network

Social Networks

Analytics

Travel
Video

Infrastructure

Gaming

Micromedia

Blog
RSS
Comment/Reputation

Wiki
Virtual World

# companies 7 4 2 1 2 2 1 2 1 1 3 1 1 1

IN DU ST R Y N E W S
This section discusses corporate activity such as partnerships, new product launches, and financial results.

V AL U AT I O N
This section provides an overview of valuation metrics for the 80 public W eb 2.0 companies we have identified thus
far. W e calculate TEV/Revenue, TEV/EBITDA, and P/E multiples for the companies in our universe. We also compare
multiples by country and exchange.

This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
w w w . r e s e a rc h c a p i t a l . c o m
T o ro n t o 4 1 6 . 8 6 0 . 7 6 0 0 Montreal 514.399.1500 Vancouver 604.662.1800 Calgary 403.265.7400 Regina 306.566.7550
 Page 2

THE WEB 2.0 UNIVERSE

80 public Web 2.0 companies identified: W e have identified 80 public companies for our W eb 2.0 universe with a
combined market cap of almost $25 billion. These include a wide variety of companies, including MMOG (Massive Multi-
Player Online Gaming) companies, social networking software companies, media sharing companies, and social lending
companies. See below for a summary of the full universe (Figure 1). Note that we have not included the large technology
and media companies such as Google, Yahoo, Disney, and Sony in our universe as they would skew the results due to
their immense size relative to the rest of the group. The average market cap for the group is over $300 million, with
average trailing revenue of $100 million. The companies are also highly profitable with an average EBITDA margin of
17.6%. On a valuation basis, the overall average is 4.0x trailing revenue and 9.4x trailing EBITDA. Seventeen of the
companies have more than 500 employees.

Comparable Company Analys is > Web 2.0

S ummary
US D LTM
Trading Current US D Market Total US D LTM Total TE V/LTM TEV/LTM
Company Name LTM as of Ticker E xc hange Currency HQ P rice Cap ($m) Rev ($m) EB ITDA ($m) E BITDA % Revenue EBITDA Employees Website
Accelerize N ew Media, Inc. 9/30/2008 AC LZ OTCB B U SD United States 0.35 9.4 3. 2 (4.7) NM 4. 3x - 20 www. accelerizenewmedia.com
Actoz Soft Co., Ltd. 9/30/2008 A052790 K OSE KRW South K orea 11,550.00 73.3 52.6 9.6 18. 3% 0. 9x 5.0x NA www. actoz.com
AQ Interactive, Inc. 9/30/2008 3838 TSE J PY J apan 39,000.00 23.6 61.4 4.9 8.0% - - NA www. aqi.co.jp
Associated Media Holdings Inc. 6/30/2007 ASMH OTCP K U SD United States 0.01 0.2 0. 1 (2.3) NM 10.2x - 3 www.macgregorenergy. com
BoomJ Inc 9/30/2008 BOMJ OTCB B U SD United States 0.90 36.8 1. 1 (7.7) NM 36.9x - 25 www.boomj. com
Bright Things plc 9/30/2008 AIM:B GT AIM GBP United K ingdom 0.02 3.1 0. 2 (1.6) NM 13.0x - 9 www. brightthings.com
BroadW ebAsia Inc. 9/30/2008 B W BA OTCP K U SD United States 1.01 85.7 0. 0 (4.6) NM - - 46 www. broadwebasia.com
CDC Corp. 9/30/2008 CHIN.A NasdaqGS U SD H ong Kong 0.75 80.9 428.1 18.8 4.4% 0. 3x 7.3x 3,125 www.cdccorpora tion.net
China G ateway Corporation 9/30/2008 CG WY OTCB B U SD United States 0.00 0.0 6. 7 (6.6) -98.9% 0. 0x - 37 -
Chinese G amer International 9/30/2008 G TSM:3083 G TSM T WD Ta iwan 90.30 227.5 38.1 18.0 47. 1% 4. 5x 9.5x NA www.chinesegamer. net
CornerW orld Corporation 10/31/2008 CW R L OTCB B U SD United States 0.41 19.3 0. 6 3.1 506.8% 33.7x 6.7x NA www. cornerworld.com
DADA SpA 9/30/2008 CM:DA CM E UR Ita ly 5.63 116.9 217.1 34.7 16. 0% 0. 7x 4.6x 574 da da.dada. net
Digita lFX International, Inc. 9/30/2008 DXN AME X U SD United States 0.12 3.0 16.9 (4.5) -26.4% 0. 3x - 68 www. digitalfx.com
Digita lP ost Interactive, Inc. 9/30/2008 DG LP OTCB B U SD United States 0.02 1.2 0. 4 (3.3) NM 5. 3x - 11 www. digitalpostinteractive.com
Digita lTown, Inc. 11/30/2008 DG TW OTCB B U SD United States 1.50 40.7 NM (2.5) NM - - 3 www.enetpc.com
Dolphin Digital Media , Inc. NA DP DM OTCB B U SD United States 0.70 34.1 NA NM NM - - 6 www.dolphindigitalmedia. com
Eolith Co. Ltd. 12/31/2007 A041060 K OSE KRW South K orea 530.00 17.8 18.0 (0.0) -0. 3% 1. 0x - NA www.eolith. co. kr
Extensions, Inc. 9/30/2008 EXTI OTCP K U SD United States 0.20 18.9 NM NM NM - - 2 www.ext.com
F inancia l Media Group, Inc. 11/30/2008 F NGP OTCB B U SD United States 0.02 1.3 6. 8 1.2 18. 3% 0. 1x 0.4x 22 www.wa llst.net
F luid Music Canada , Inc. 9/30/2008 TS X:F MN TSX C AD United States 0.40 16.9 4. 2 (8.6) NM - - 29 www.fluidmedia networks. com
F rogster Interactive P ictures AG 6/30/2008 FR G XT R A E UR G ermany 4.63 13.9 5. 2 (3.1) -60.6% 2. 6x - NA www.frogster-ip.de/en/index.php
Ga mania Digital E ntertainment Co., L td. 9/30/2008 6180 G TSM T WD Ta iwan 20.80 93.6 110.2 18.6 16. 9% 0. 6x 3.7x NA www.ga mania.co.kr
Ga meOn Co L td. 9/30/2008 3812 TSE J PY J apan 119,500.00 132.5 83.0 21.0 25. 4% 0. 8x 3.2x NA www.gameon.co.jp
GeoS entric Oyj 9/30/2008 G E O1V HL SE E UR F inland 0.03 34.4 5. 3 ( 12.1) NM 5. 6x - 92 www.benefon.com
Giant Interactive G roup, Inc. 9/30/2008 GA NYS E U SD China 5.80 1,378.7 244.7 155. 3 63. 5% - - 1,016 www.ga-me. com
GigaMedia L td. 9/30/2008 GIGM NasdaqGS U SD Ta iwan 6.52 352.3 200.5 48.0 23. 9% 1. 4x 6.0x 975 www.gigamedia.com.tw
GoFish Corporation 9/30/2008 G OF H OTCB B U SD United States 0.20 5.1 6. 3 ( 11.0) NM 2. 5x - 41 www.gofish.com
Gravity Co., Ltd 9/30/2008 GRVY Nasda qG M U SD South K orea 0.72 20.0 35.2 6.8 19. 2% - - 636 www.gravity. co.kr
Gree, Inc. NA TSE :3632 TSE J PY J apan 5,930.00 0.0 NA NM NM - - NA www.gree. co.jp
GungHo Online Entertainment, Inc. 9/30/2008 3765 OS E J PY J apan 106,600.00 135.7 113.7 16.7 14. 7% 1. 0x 6.5x NA www. gungho.co. jp/english/
HanbitS oft, Inc. 9/30/2008 A047080 K OSE KRW South K orea 3,040.00 47.9 49.9 ( 12.8) -25.6% 0. 6x - NA www.hanbitsoft.co. kr
IAS E nergy, Inc. 10/31/2008 IAS C.A OTCB B U SD Canada 0.03 1.8 0. 0 (0.9) NM - - NA www. ia senergy.com
IdeaE dge, Inc. 9/30/2008 OTCB B :IDAE OTCB B U SD United States 0.42 17.7 0. 0 (3.5) NM - - NA www.ideaedge.com
J umbuck Entertainment P ty Ltd. 6/30/2008 AS X:J MB AS X AUD Australia 0.48 15.0 9. 9 4.6 46. 0% 1. 1x 2.4x 72 www.jumbuck. com
J umpTV Inc. 6/30/2008 TSX :J TV TSX C AD Canada 0.44 40.3 11.5 (1.8) -15.3% 4. 3x - NA www.jumptv.com
Ka boose Inc. 9/30/2008 TSX :K AB TSX C AD Canada 0.43 48.6 59.8 4.6 7.6% 0. 9x 12.2x NA www.kaboose.com
Kingsoft Co. Ltd. 9/30/2008 3888 SE HK H KD China 2.66 368.2 106.5 36.0 33. 8% 2. 6x 7.8x 1,660 www. kingsoft.com
Lingo Media Corpora tion 9/30/2008 TSX V: LM TS XV C AD Canada 1.05 10.9 3. 3 (1.4) -42.5% 3. 5x - NA www.lingomedia .com
LiveWorld Inc. 9/30/2008 LV W D OTCP K U SD United States 0.06 1.9 11.7 (1.2) -10.1% - - 73 www.liveworld. com
LookS mart, Ltd. 9/30/2008 LOOK Nasda qG M U SD United States 1.35 23.0 69.5 (2.6) -3. 7% - - 93 www. looksmart.com
Magnitude Information S ystems Inc. 9/30/2008 MAGY OTCB B U SD United States 0.03 11.3 0. 1 (3.2) NM - - 13 www.ma gnitude. com
Mixi, Inc. 9/30/2008 2121 TSE J PY J apan 534,000.00 909.7 125.3 49.4 39. 4% 6. 4x 16.1x NA www.mixi.co.jp
Moggle, Inc 12/31/2008 MMOG OTCB B U SD United States 2.00 70.6 NM (1.1) NM - - 3 www. playmoggle.com
National L ampoon Inc. 7/31/2008 NLN AME X U SD United States 0.73 6.9 7. 4 (1.6) -21.1% 1. 6x - 24 www.nationallampoon.com
NEOW IZ G ames Corpora tion 12/31/2007 A095660 K OSE KRW South K orea 23,600.00 163.0 129.7 34.9 26. 9% 1. 2x 4.4x NA www.neowiz.com/kor/
NetDra gon WebS oft, Inc. 9/30/2008 777 SE HK H KD China 2.75 187.4 95.1 46.2 48. 6% 0. 1x 0.2x 1,482 www. nd. com.cn
Netea se.com Inc. 9/30/2008 NTE S NasdaqGS U SD China 18.73 2,304.8 421.7 273. 8 64. 9% - - 2,413 corp.163.com
NeXplore Corporation 9/30/2007 NXP C OTCP K U SD United States 0.55 30.7 NM (4.9) NM - - 19 www.nexplore.com
Ngi G roup Inc. 9/30/2008 2497 TSE J PY J apan 34,300.00 47.2 101.8 34.1 33. 5% - - NA www.neta ge.co.jp/en/index. html
Northgate Technologies L imited 9/30/2008 590057 B SE INR India 38.90 27.9 137.0 24.4 17. 8% 0. 2x 1.1x 286 www.northgatetech.com
Open Text Corp. 12/31/2008 OTEX NasdaqGS U SD Canada 34.74 1,802.6 769.3 195. 4 25. 4% 2. 5x 9.9x 2,915 www.opentext.com
Openwa ve S ystems Inc. 12/31/2008 OPW V NasdaqGS U SD United States 0.81 66.9 199.6 ( 10.4) -5. 2% - - 657 www.openwa ve.com
Perfect W orld Co., Ltd. 9/30/2008 P WR D NasdaqGS U SD China 13.91 793.5 186.5 99.7 53. 5% - - 1,401 www.wanmei.com/en/index.htm
PhotoChannel Networks Inc. 9/30/2008 TS XV : PN TS XV C AD Canada 1.72 46.4 13.7 (2.4) -17.7% 3. 3x - NA www.photocha nnel.com
Quepasa Corp. 9/30/2008 QP SA NasdaqCM U SD United States 1.87 23.7 0. 1 ( 11.8) NM - - 63 www.quepasa . com
Shanda Interactive Entertainment L td. 9/30/2008 SNDA NasdaqGS U SD China 29.22 2,027.4 477.0 227. 8 47. 8% - - 2,564 www.snda .com
Shutterfly, Inc. 9/30/2008 S FLY NasdaqGS U SD United States 6.82 171.0 203.3 25.7 12. 6% 0. 6x 5.1x 512 www.shutterfly.com
SK Communications Co. , Ltd. 12/31/2007 A066270 K OSE KRW South K orea 7,780.00 230.2 149.2 14.0 9.4% 1. 5x 16.4x NA -
SNAP Interactive, Inc. 9/30/2008 S TV I OTCB B U SD United States 1.00 10.7 2. 3 0.2 10. 1% 4. 2x 41.2x 5 www.snap-interactive.com
SNM G lobal Holdings 9/30/2008 S NMN OTCP K U SD United States 0.00 0.0 2. 0 (0.7) -34.8% 1. 1x - 33 www. snmglobalholdings.com
Spark Networks, Inc. 9/30/2008 LOV AME X U SD United States 2.41 51.7 60.1 11.7 19. 5% 0. 8x 4.1x 176 www.spark.net
SpectrumDNA, Inc. 9/30/2008 S P XA OTCB B U SD United States 0.10 4.9 0. 1 (2.7) NM - - 7 -
Tencent Holdings Ltd. 9/30/2008 700 SE HK H KD China 47.05 10, 894.1 901.8 446. 8 49. 5% 13.0x 26.3x 6,039 www. tencent.com. hk /index_e.shtml
The P arent Company 8/2/2008 KIDS .Q OTCP K U SD United States 0.03 0.7 112.0 ( 13.5) -12.0% 0. 2x - 347 www. theparentcompany.com
The9 Limited 9/30/2008 NCTY NasdaqGS U SD China 14.90 411.4 252.0 94.9 37. 7% - - 1,361 www.the9.com
TheStreet.com, Inc. 9/30/2008 T SCM Nasda qG M U SD United States 2.87 87.5 75.2 12.2 16. 2% 0. 1x 0.8x 349 www.thestreet. com
Tree. Com, Inc. 9/30/2008 TR E E Nasda qG M U SD United States 4.00 37.5 231.2 ( 39.6) -17.1% 0. 1x - 1,000 www.lendingtree. com
Uniserve Communications Corp. 11/30/2008 TS XV :US S TS XV C AD Canada 0.10 2.0 24.1 0.1 0.4% 0. 2x 40.7x NA www.uniserve. com
United Online Inc. 9/30/2008 UNTD NasdaqGS U SD United States 6.00 491.8 538.7 130. 6 24. 2% 1. 6x 6.5x 928 www.unitedonline.net
UOMO Media, Inc 10/31/2008 UOMO OTCB B U SD Canada 0.08 6.8 0. 5 (0.4) -91.6% 15.1x - NA www.uomolife.com
VOIS , Inc. 9/30/2008 VOIS OTCB B U SD United States 0.75 5.4 0. 0 (4.0) NM - - 4 www.vois. com
W ebzen Inc. 9/30/2008 WZE N Nasda qG M U SD South K orea 1.45 17.2 20.3 (6.0) -29.5% - - 338 www.webzen.co. kr
W izza rd S oftwa re Corporation 9/30/2008 W ZE AME X U SD United States 0.70 31.6 6. 2 (6.5) NM 5. 1x - 110 www.wizzardsoftware.com
W oozyF ly, Inc. 9/30/2008 W ZYF OTCB B U SD United States 0.15 2.6 0. 0 NM NM - - 14 www.woozyfly. com
W orlds.com Inc. 9/30/2008 W DDD OTCB B U SD United States 0.22 11.5 0. 1 NM NM - - 1 www.worlds. com
W yndstorm Corporation NA W YND OTCB B U SD United States 0.13 2.3 NA NM NM - - NA www.wyndstorm.com
XING AG 9/30/2008 O1B C XT R A E UR G ermany 28.21 188.0 40.1 15.6 38. 8% 3. 3x 8.6x 161 www.xing. com
YedangOnline Corp. 12/31/2007 A052770 K OSE KRW South K orea 6,830.00 76.9 49.3 11.0 22. 4% 1. 5x 6.9x NA www. yeda ngonline. com/indexhome. asp
Ynk K orea Inc. 12/31/2007 A023770 K OSE KRW South K orea 3,805.00 6.7 14.0 (1.1) -7. 6% 0. 5x - NA www.ynk.net
ZipLocal Inc. 9/30/2008 TSX V:ZIP TS XV C AD Canada 0.02 1.3 2. 8 (3.9) NM 0. 7x - NA www. ziplocal.com
High 10, 894.1 901.8 446.8 506.8% 36.9x 41.2x 6,039
Low 0.0 0.0 -39.6 -98.9% 0. 0x 0.2x 1
Average 310.2 100.4 26.2 17.6% 4.0x 9.4x 601

Figure 1. Web 2.0 Universe Summary

Source. Capital IQ
 Page 3

C A P I T A L M A R K E T S A C T I V I T Y (M & A A N D F I N A N C I N G )
Video sites lead busiest month since April 2008: After 18 financings in December totalling $122.1 million (average $6.8
million), January has been the busiest month since April 2008, with 29 financings totalling $199.5 million (average $6.9
million). The largest financing in the last three months was of HuffingtonPost for $25.0 million in November (Figure 2). Ten
companies raised more than $10 million each in January – with AdMob the largest at $12.5 million. For additional details,
see Figure 27 (at end of note).

Financing - Last Three Months

30.0

25.0

20.0

Jan-09
(US$m)

15.0 Dec-08
Nov-08

10.0

5.0

0.0
Motionbox
Xobni

Overlay.TV
Rockyou
PlaySpan

AdMob

NewsGator
Go Internet Media

FooMojo

One True Media

Social Median

Kewego
SocialMedia

Playdo

Casual Collective

CoveritLive
VirtuOz

IMVU

SundaySky
Play Hard Sports

InsideView

Gbox

Multiply

Tripwolf

StockTwits

Meez
GoFish

NetShelter

Nurien

Yodle

Taptu

Scribd

JibJab

Superfish
Snapmylife

Tagged
Jackbe

Tumblr

DotBlu
Hubdub

Snooth

Identi.ca
HuffingtonPost

Angie's List

KickApps

Aster Data Systems

RatePoint

AboutUs
ChakPak
Sportsblogs

E-Global Sports

Clickpass
Blue Kai

Geni
DECA

Machinima.com

Pulse Entertainment
Worlds.com Inc.

Figure 2. Financings, Last Three Months

Source. Company reports

Video sites lead: The activity was led by seven transactions for video-related companies, raising over $50 million in the
month (Figure 3). Four ad networks raised almost $40 million between them.

Financing by Sector - January 2009

60.0

50.0

40.0
(US$m)

30.0

51.7

20.0 38.5

10.0 20.0

12.0 12.0 11.5 11.4 11.0 10.0

6.5 6.2 5.0
2.5 1.2
0.0
Travel
Video

Infrastructure

Micromedia

Blog
Ad Network

Social Networks

Analytics

Crowdsourced Content
RSS
Gaming
Virtual World

Comment/Reputation

Wiki

# companies 7 4 2 1 2 2 1 2 1 1 3 1 1 1
 Page 4

Figure 3. Financings, by Sector, January 2009

Source. Company reports

But January activity doesn’t offset weak 2H/08: However, on a trailing 12-month basis, financings are down for the third
month in the last four, with average round sizes decreasing slightly as of January (Figure 4).

LTM Financing

4,000.0 20.0

18.0
3,500.0

16.0

3,000.0

14.0

2,500.0
12.0
(US$m)

(US$m)
2,000.0 10.0

8.0
1,500.0

6.0

1,000.0

4.0

500.0
2.0

0.0 0.0
May-06

May-07

May-08
Nov-05

Mar-06

Nov-06

Mar-07

Nov-07

Mar-08

Nov-08
Jul-05

Sep-05

Jan-06

Jul-06

Sep-06

Jan-07

Jul-07

Sep-07

Jan-08

Jul-08

Sep-08

Jan-09

Total Average

Figure 4. Financings, Last 12 Months

Source. Company reports

Cumulative total passes $5.2 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled over $5.2 billion,
with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 5).

Web 2.0 Financing (cumulative)

1,400.0 6,000.0
1,303.0

1,200.0
5,000.0

1,000.0 944.7
4,000.0

800.0
(US$m)

(US$m)

701.7
3,000.0

600.0
524.9

2,000.0
400.0 338.5
297.0

199.5 1,000.0
200.0 145.7
124.1 116.3 97.0
87.2 73.4
35.5 28.8 20.1 37.5 33.5 18.2 41.9 49.1 29.4
0.0 0.0
Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1
2003 2004 2005 2006 2007 2008 2009

Figure 5. Financing, Cumulative

Source. Company reports
 Page 5

U.S. remains dominant: U.S. companies continue to dominate capital market activity – with almost 73% of
financings/M&A involving U.S. companies (based on dollars) (Figure 6). Canadian companies generated under 1% of
capital market activity based on dollar volume (Figure 6). Based on number of transactions, the U.S. leads with 73% of
deals, while Canada is third in number of financings at 5.5% (Figure 7).

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

5.5%
UK
UK
5.9%
13.2%
Israel
3.1%
France
China 2.3%
7.9%

Russia ROW
1.7% Israel 10.2%
0.8%

Canada
0.7%

Denmark
0.7%

ROW
2.4%

USA USA
72.6% 73.0%

Figures 6 & 7. Financing/M&A, by Country (LTM, $, #)

Source. Company reports

More 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 8). Series B rounds are 30.1% of the total, with later-stage (Series D, E and PIPE) deals
accounting for just 7.1%.

Financing by Type - LTM

Series B
Series C
30.1%
13.0%

Series D
4.6%

Angel/Seed
9.2%

Debt financing
2.9%

PIPE
Series A 2.1%
38.1%

Figure 8. Financing, by Type (LTM, $)

Source. Company reports

“D” series are largest equity rounds (by dollar): In the last 12 months, there have been 11 “D” series rounds, averaging
over $25 million per financing (Figure 9). Note that we have excluded the $430 million Series C financing of Oak Pacific
Interactive as it skews the results substantially.
 Page 6

Average financing round size - LTM

40.0

35.0

30.0

25.0
(US$m)

20.0
38.1

15.0

26.2

10.0
18.2

11.3
5.0 10.0
8.8
6.4
3.3
0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E
# rounds
22 7 5 91 72 31 11 1

Figure 9. Average Size per Round

Source. Company reports

C A P I T A L M A R K E T S A C T I V I T Y (P R I C E P E R F O R M A N C E )
Price Performance: Our W eb 2.0 index (market-cap weighted) has closely tracked the performance of the NASDAQ
composite index, although it has outperformed the index since late October 2008 (Figure 10).

Web 2.0 Index Price Performance

140

120

100

80

60

40

20

0
2/4/2008

2/18/2008

3/3/2008

3/17/2008

3/31/2008

4/14/2008

4/28/2008

5/12/2008

5/26/2008

6/9/2008

6/23/2008

7/7/2008

7/21/2008

8/4/2008

8/18/2008

9/1/2008

9/15/2008

9/29/2008

10/13/2008

10/27/2008

11/10/2008

11/24/2008

12/8/2008

12/22/2008

1/5/2009

1/19/2009

2/2/2009

NASDAQ COMP Web 2.0 (Market Cap Weighted)

Figure 10. Web 2.0 Price Performance

Source. Capital IQ
 Page 7

Moggle leads; DigitalTown continues weak performance: DigitalTown (DGTW -OTCBB) again had the worst
performance in the group (for stocks with prices greater than $1) (Figure 11), falling 34.8% on the week. Moggle (MMOG-
OTCBB) increased the most, +33.3%.

1 Week Pric e P erformanc e

Moggle, Inc 33. 3%

AQ Interactive, Inc. 30. 9%
S hutterfly, Inc. 13. 3%
S K C ommunications C o. , L td. 10. 4%
Mixi, Inc. 10. 1%
Actoz S oft C o. , L td. 9. 0%
G ree, Inc. 8. 4%
G ungHo Online E ntertainment, Inc. 8. 2%
O pen T ext C orp. 7. 2%
L ingo Media C orpora tion 7. 1%
T encent Holdings L td. 6. 3%
Neteas e. com Inc. 5. 7%
S ha nda Interactive E ntertainment L td. 4. 9%
NetDragon W ebS oft, Inc. 3. 8%
E olith C o. L td. 2. 9%
NE O W IZ G ames C orpora tion 2. 6%
L ookS ma rt, L td. 2. 3%
W ebzen Inc. 1. 4%
K ings oft C o. L td. 0. 0%
C hines e G a mer International 0. 0%
S park Networks , Inc. -0. 8%
T heS treet. com, Inc. -1. 0%
Q uepas a C orp. -1. 1%
HanbitS oft, Inc. -1. 1%
P hotoC hannel Networks Inc. -1. 1%
G iga Media L td. -1. 2%
U nited O nline Inc. -1. 5%
G iant Interactive G roup, Inc. -2. 7%
XING AG -2. 7%
G ameO n C o L td. -2. 8%
G amania Digital E ntertainment C o. , L td. -3. 5%
Y edangO nline C orp. -3. 7%
Y nk K orea Inc. -3. 7%
T he9 L imited -5. 8%
F rogs ter Intera ctive P ictures AG -6. 5%
T ree. C om, Inc. -7. 2%
Northgate T echnologies L imited -8. 5%
P erfect W orld C o. , L td. -10. 0%
DADA S pA -12. 4%
Ngi G roup Inc. -23. 1%
DigitalT own, Inc. -34. 8%

-40. 0% -30. 0% -20. 0% -10. 0% 0. 0% 10. 0% 20. 0% 30. 0% 40. 0%

Figure 11. 1-Week Price Performance

Source. Capital IQ

INDUSTRY NEWS (PARTNERSHIPS, FINANCIAL RESULTS, NEW PRODUCTS)

DigitalTown, Inc. Names Jan K. Andersen as CEO: The board of directors of DigitalTown, Inc. named Jan K. Andersen
to the new position of Chief Executive Officer. Richard A. Pomije will continue as Chairman of the Corporation. Andersen
most recently served as President and CEO of Bellacor.com, which he led from its inception in 2000 to become a leading
e-tailer in the home furnishings category. W hile at Bellacor.com, he grew revenues by more than 50% annually and
brought the company to profitability within a year of its initial launch. He was also an early pioneer of several e-tail
strategies now commonplace.
Openwave Systems Inc. Enters into $40 Million Secured Revolving Credit Arrangement with Silicon Valley Bank:
Openwave Systems Inc. and Silicon Valley Bank entered into a $40 million secured revolving credit arrangement to
improve liquidity and working capital for the Company. The Company may borrow, repay and reborrow under the line of
credit facility at any time. As of January 27, 2009, the line of credit facility bears interest at 4% per annum. The
Company's line of credit is collateralized by substantially all of the Company's assets and requires the Company to comply
with customary affirmative and negative covenants principally relating to use and disposition of assets, the satisfaction of
a liquidity coverage ratio test and minimum EBITDA requirements. In addition, the credit arrangement contains customary
events of default. Upon the occurrence of an uncured event of default, among other things, the Bank may declare that all
amounts owing under the credit arrangement are due and payable. The line of credit and facility expire on January 22,
2011.
Tree.Com Amends Line of Credit Agreement with Countryw ide Bank, FSB; Names Patrick L. McCrory as Director:
On January 23, 2009, the Tree.Com, Inc., through its subsidiary Home Loan Center, Inc., mutually agreed with
Countrywide Bank, FSB to extend the term of its $50 million committed line of credit to February 23, 2009 and to revise
 Page 8

the interest rate to 30-day LIBOR plus 225 basis points. In addition to certain amendments to the financial covenants, the
parties also mutually agreed to reduce the uncommitted line of credit from $150 million to $50 million. Both parties
continue to work on a one-year extension of the committed facility. On January 26, 2009, the Company's Board of
Directors appointed Patrick L. McCrory as a director of the Company. The Board of Directors determined that Mr. McCrory
qualifies as an 'independent' director, and appointed him to serve on the Company's Compensation and Nominating
Committees.

VALUATION
MMOG companies lead market cap charts: Just five (same as last week) companies in our W eb 2.0 universe top US$1
billion in market capitalization (Figure 12). In addition, 60 of the 80 (same as last week) companies have market caps
under US$100 million, with 22 (24 last week) under $10 million. Online gaming companies dominate the top of the list with
five of the top seven by market cap.

Market C ap (US D m)

T encent H oldings L td.

Netea s e.com Inc. 2304. 8
S handa Interactive E nterta inment 2027. 4
O pen T ext C orp. 1802. 6
G ia nt Intera ctive G roup, Inc. 1378. 7
Mixi, Inc. 909. 7
P erfect W orld C o. , L td. 793. 5
United O nline Inc. 491. 8
T he9 L imited 411.4
K ings oft C o. L td. 368. 2
G iga Media L td. 352. 3
S K C ommunica tions C o. , L td. 230. 2
C hines e G amer Interna tiona l 227. 5
XING AG 188. 0
NetDra gon W ebS oft, Inc. 187.4
S hutterfly, Inc. 171.0
NE O W IZ G ames C orpora tion 163. 0
G ungHo O nline E nterta inment, Inc. 135. 7
G a meO n C o L td. 132. 5
DADA S pA 116. 9
G a ma nia Digita l E ntertainment C o. , 93. 6
T heS treet. com, Inc. 87. 5
B roadW ebAs ia Inc. 85. 7
C DC C orp. 80. 9
Y edangOnline C orp. 76. 9
Actoz S oft C o. , L td. 73. 3
Moggle, Inc 70. 6
O penwave S ys tems Inc. 66. 9
S park Networks , Inc. 51. 7
K aboos e Inc. 48. 6
Ha nbitS oft, Inc. 47. 9
Ngi G roup Inc. 47. 2
P hotoC ha nnel Networks Inc. 46. 4
DigitalT own, Inc. 40. 7
J umpT V Inc. 40. 3
T ree.C om, Inc. 37.5
B oomJ Inc 36. 8
G eoS entric Oyj 34. 4
Dolphin Digita l Media , Inc. 34. 1
W izza rd S oftwa re C orpora tion 31. 6
NeXplore C orpora tion 30. 7
Northga te T echnologies L imited 27. 9
Q uepa s a C orp. 23. 7
AQ Interactive, Inc. 23. 6
L ookS mart, L td. 23. 0
G ra vity C o., L td 20. 0
C ornerW orld C orpora tion 19. 3
E xtens ions , Inc. 18. 9
E olith C o. L td. 17. 8
IdeaE dge, Inc. 17. 7
W ebzen Inc. 17. 2
F luid Mus ic C a na da , Inc. 16. 9
J umbuck E ntertainment P ty L td. 15. 0
F rogs ter Intera ctive P ictures AG 13. 9
W orlds .com Inc. 11. 5
Ma gnitude Informa tion S ys tems Inc. 11. 3
Lingo Media C orpora tion 10.9
S NAP Interactive, Inc. 10.7
Accelerize New Media , Inc. 9. 4
Na tiona l La mpoon Inc. 6.9
UO MO Media , Inc 6.8
Y nk K orea Inc. 6.7
V OIS , Inc. 5. 4
G oF is h C orpora tion 5. 1
S pectrumDNA, Inc. 4. 9
B right T hings plc 3. 1
Digita lF X Internationa l, Inc. 3. 0
W oozyF ly, Inc. 2. 6
W ynds torm C orpora tion 2. 3
U nis erve C ommunications C orp. 2.0
LiveW orld Inc. 1.9
IAS E nergy, Inc. 1.8
F inancia l Media G roup, Inc. 1.3
ZipLoca l Inc. 1. 3
DigitalP os t Interactive, Inc. 1. 2
T he P arent C ompany 0. 7
As s ocia ted Media Holdings Inc. 0. 2
C hina G a tewa y C orpora tion 0. 0
S NM G loba l Holdings 0. 0
G ree, Inc. 0. 0

0 500 1, 000 1, 500 2, 000 2, 500 3, 000 3, 500 4, 000

Figure 12. Market Cap Ranking

Source. Capital IQ

TEV/Revenue (LTM) averages 4.0x: The overall average TEV/Revenue (LTM) multiple for our group is 4.0x (Figure 13).
However, this is skewed by CornerW orld (CW RL-OTCBB) at 33.7x and BoomJ at 36.9x (BOMJ-OTCBB). Excluding those
companies, the average is 2.7x. Note that we exclude multiples greater than 50x. Twenty-six of the companies have
multiples under 1.5x.
 Page 9

TE V/L TM R evenue (x)

40. 0
36. 9

35. 0 33. 7

30. 0

25. 0

20. 0

15. 1
15. 0 13. 013. 0

10. 2
10. 0
6. 4
Average, 4. 0 5. 1 5. 3 5. 6
5. 0 4. 2 4. 3 4. 3 4. 5
3. 3 3. 3 3. 5
2. 5 2. 5 2. 6 2. 6
1. 4 1. 5 1. 5 1. 6 1. 6
0. 7 0. 7 0. 8 0. 8 0. 9 0. 9 1. 0 1. 0 1. 1 1. 1 1. 2
0. 0 0. 1 0. 1 0. 1 0. 1 0. 2 0. 2 0. 2 0. 3 0. 3 0. 5 0. 6 0. 6 0. 6
0. 0
C hina G ateway C orporation

L ingo Media C orporation

G eoS entric Oyj

G oF is h C orporation

W iz z ard S oftware C orporation

C hines e G amer International
Northgate T echnologies L imited

UO MO Media, Inc
Accelerize New Media, Inc.

Mixi, Inc.

C ornerW orld C orporation

B right T hings plc
T he P arent C ompany
DigitalF X International, Inc.

NE O W IZ G ames C orporation

O pen T ext C orp.

B oomJ Inc
DADA S pA
F inancial Media G roup, Inc.

C DC C orp.
Y nk K orea Inc.
HanbitS oft, Inc.

S hutterfly, Inc.
ZipL ocal Inc.

S park Networks , Inc.

Actoz S oft C o. , L td.

K aboos e Inc.

E olith C o. L td.

G igaMedia L td.

Y edangOnline C orp.

United Online Inc.

K ings oft C o. L td.

P hotoC hannel Networks Inc.

S NAP Interactive, Inc.

DigitalP os t Interactive, Inc.

As s ociated Media Holdings Inc.

T encent Holdings L td.

S NM G lobal Holdings

X ING AG
T ree. C om, Inc.

T heS treet. com, Inc.

Unis erve C ommunications C orp.

G ameOn C o L td.

G ungHo Online E ntertainment, Inc.

J umbuck E ntertainment P ty L td.

National L ampoon Inc.

J umpT V Inc.
F rogs ter Interactive P ictures AG
NetDragon W ebS oft, Inc.

G amania Digital E ntertainment C o. , L td.

S K C ommunications C o. , L td.

Figure 13. TEV/Revenue Ranking

Source. Capital IQ

TEV/Revenue (LTM) by country/exchange: W e have also calculated multiples based on where the companies are listed
or domiciled. Figure 14 shows the average TEV/Revenue multiples by stock exchange. The OTCBB has the largest
number of companies (20), trading at an average multiple of 11.3x (up from 10.7x last week). On a geographic basis, the
United States has the most companies (37), trading at an average of 5.7x revenue (up from 5.4x revenue lat week) (Figure
15). Nine of the companies are Canadian (average 3.8x revenue).

Average TEV/LTM Revenue - By Exchange Average TEV/LTM Revenue - By Country

14.0 14.0

12.0 12.0

10.0
10.0

8.0
8.0
(x)

(x)

13.0
6.0 13.0
11.3 6.0

4.0
4.0
5.6 5.3
5.7 5.6
2.0 3.8 5.3
3.6
3.0 2.0
2.6 2.6 3.8
1.9 1.9
1.3 3.0 2.7
1.1 1.0 1.0 0.7 2.2
0.0 0.2 0.1
1.1 1.0
AMEX
XTRA

TSX

TSXV

ASX
AIM

GTSM

CM

NasdaqGM
OTCBB

HLSE

SEHK

OTCPK

TSE

NasdaqGS

KOSE

OSE

BSE

0.7
0.0 0.3 0.2
United United Finland China Canada Germany Japan Taiwan Australia South Korea Italy Hong Kong India
Kingdom States

# Companies 1 20 1 3 7 5 2 3 2 4 4 10 1 7 1 1 1 5 1 37 1 8 9 2 6 3 1 9 1 1 1
# Companies

Figures 14 & 15. TEV/Revenue Ranking (Exchange, Country)

Source. Capital IQ

TEV/EBITDA (LTM) averages 9.4x: The average multiple for the 28 companies with positive EBITDA (and multiples under
100x) is 9.4x LTM EBITDA (8.4x last week), led by SNAP Interactive’s (STVI-OTCBB) 41.2x multiple (Figure 16).
Seventeen of the companies have EBITDA multiples under 7x.
 Page 10

TE V/L TM E B ITDA (x)

45. 0
40. 7 41. 2
40. 0

35. 0

30. 0
26. 3

25. 0

20. 0
16. 1 16. 4
15. 0
12. 2
Average, 9. 4 9. 5 9. 9
10. 0 8. 6
7. 3 7. 8
6. 5 6. 5 6. 7 6. 9
6. 0
4. 4 4. 6 5. 0 5. 1
5. 0 3. 7 4. 1
3. 2
2. 4
0. 8 1. 1
0. 2 0. 4
0. 0

C hines e G amer International

Northgate T echnologies L imited

C ornerW orld C orporation

Mixi, Inc.
NE O W IZ G ames C orporation

O pen T ext C orp.

DADA S pA
F inancial Media G roup, Inc.

S park Networks , Inc.

Actoz S oft C o. , L td.

S hutterfly, Inc.

G igaMedia L td.

United Online Inc.

Y edangOnline C orp.

C DC C orp.

K ings oft C o. L td.

K aboos e Inc.

T encent Holdings L td.

S NAP Interactive, Inc.

X ING AG
T heS treet. com, Inc.

J umbuck E ntertainment P ty L td.

G ameOn C o L td.

G ungHo Online E ntertainment, Inc.

Unis erve C ommunications C orp.

NetDragon W ebS oft, Inc.

G amania Digital E ntertainment C o. , L td.

S K C ommunications C o. , L td.
Figure 16. TEV/EBITDA Ranking
Source. Capital IQ

TEV/EBITDA (LTM) by country/exchange: Figure 17 shows the average TEV/EBITDA multiples by stock exchange. The
OTCBB has the largest number of companies (20), trading at an average multiple of 16.1x, while companies on the TSXV
have the highest multiples (40.7x). On a geographic basis, the United States has the most companies (37), trading at an
average of 9.2x EBITDA (Figure 18). Nine of the companies are Canadian (average 20.9x EBITDA).

Average TEV/LTM EBITDA - By Exchange Average TEV/LTM EBITDA - By Country

45.0 25.0

40.0

35.0 20.0

30.0

25.0 15.0
(x)

(x)

20.0 40.7

20.9
10.0
15.0

10.0
16.1
11.4
12.2 11.4 5.0
5.0 9.7 9.2
8.6 8.2 8.6 8.6 8.2
7.0 6.6 6.5 7.3
4.6 4.1 6.4
2.4
1.1 0.8 4.6
0.0
AMEX
TSXV

TSX

XTRA

ASX
GTSM

CM

NasdaqGM
OTCBB

SEHK

TSE

KOSE

NasdaqGS

OSE

BSE

2.4
1.1
0.0
Canada China United States Japan Germany South Korea Hong Kong Taiwan Italy Australia India

# Companies 4 20 3 3 5 2 7 10 2 1 1 4 1 1 5 9 8 37 6 2 9 1 3 1 1 1
# Companies

Figures 17 & 18. TEV/EBITDA Ranking (Exchange, Country)

Source. Capital IQ

P/E (LTM) averages 13.1x: The average multiple for the 29 companies with positive earnings (and multiples under 100x)
is 13.1x LTM EPS (up from 12.5x LTM EPS), led again by SNAP Interactive’s (STVI-OTCBB) 59.1x multiple (Figure 19).
Sixteen of the companies have P/E multiples under 10x.
 Page 11

P/E L TM (x)

70. 0

59. 1
60. 0

50. 0

39. 3
40. 0 36. 8
35. 7

30. 0 28. 1

18. 7
20. 0
Average, 13. 1 14. 3 14. 8
12. 8 13. 7
9. 3 10. 4 10. 7 10. 8
8. 6 9. 1
10. 0 7. 2 7. 5
5. 2 5. 2 5. 3
3. 3 4. 2
1. 1 1. 2 1. 3 1. 7 1. 7 1. 8
0. 0

C hines e G amer International

T he9 L imited

Northgate T echnologies L imited

Mixi, Inc.
NE O W IZ G ames C orporation

O pen T ext C orp.

DADA S pA
G iant Interactive G roup, Inc.

S handa Interactive E ntertainment L td.

S park Networks , Inc.

Ngi G roup Inc.

United Online Inc.

Y edangOnline C orp.

G igaMedia L td.

K ings oft C o. L td.

Actoz S oft C o. , L td.

S hutterfly, Inc.

T encent Holdings L td.

S NAP Interactive, Inc.

X ING AG
Neteas e. com Inc.

L ookS mart, L td.

J umbuck E ntertainment P ty L td.

G ameOn C o L td.

T heS treet. com, Inc.

NetDragon W ebS oft, Inc.

G amania Digital E ntertainment C o. , L td.

P erfect W orld C o. , L td.

W orlds . com Inc.

Figure 19. P/E Ranking

Source. Capital IQ

P/E (LTM) by country/exchange: Figure 20 shows the average P/E multiples by stock exchange. The OTCBB has the
largest number of companies (20), trading at an average multiple of 31.7x. On a geographic basis, the United States has
the most companies (37), trading at an average of 17.5x earnings (Figure 21). Nine of the companies are Canadian
(average 36.8x EPS).

Average P/E - By Exchange Average P/E - By Country

35.0 40.0

35.0
30.0

30.0
25.0

25.0

20.0
(x)

(x)

20.0

31.7 36.8
15.0

15.0

10.0
19.1 18.7
17.3 10.0 19.1 18.7
17.5

12.2
11.1 10.9
5.0 11.6 10.9
9.1 8.6 5.0
7.2 8.6
7.4 7.2
5.2

1.7 1.3 1.7

0.0 0.0
OTCBB TSE XTRA SEHK GTSM NasdaqGS KOSE NasdaqGM ASX CM AMEX BSE NYSE Canada Japan Germany United States Taiwan South Korea Australia China Italy India

20 5 2 3 2 10 7 5 1 1 4 1 1 9 6 2 37 3 9 1 8 1 1
# Companies # Companies

Figures 20 & 21. P/E Ranking (Exchange, Country)

Source. Capital IQ
 Page 12

UPCOMING EVENTS
Upc oming E vents
E vent Date Location Webs ite
O 'R eilly Money: T ech F ebruary 4-6 Ne w Y ork www. con ferences . oreilly. com/mo ney /
Us er G ene ra ted C onte nt F ebruary 9-10 S a n J o se www. u gc xevent. co m/
W eb 2. 0 C an adian L ea de rs hip S erie s -
G am in g March 3 T o ro nto http: //web2 lea ders hipse ries .iglo oevents. net/
E ngag e! E xpo March 1 0-1 1 Ne w Y ork www. e ngag eexpo. com
Me sh 200 9 April 7-8 T o ro nto www. mes hc onf erenc e. com

Figure 22. Upcoming Events

Source. Company reports

E arnings C alendar
C ompany Date & Time Qua rter C onf C all Details
S hutterfly , I nc. ( Nas da qG S :S F LY ) W ednes day , F ebru a ry 0 4, 2 009 2: 00 P M ( P S T ) Q4 200 8 719-32 5-4826
T ree.C om, Inc. (N a sdaqG M: T R E E ) T hurs day , F ebru ary 0 5, 2 009 11:0 0 A M ( E S T ) Q4 200 8 877-74 1-4253
United O nline Inc . ( Na sd aqG S : UNT D) T hurs day , F ebru ary 1 9, 2 009 5: 00 P M (E S T ) Q4 200 8 888-58 7-0611

Figure 23. Earnings Calendar

Source. Company reports
 Page 13

C omparable C ompany Analys is > W eb 2.0

P ric e P erforma nce

C ompany Name C urrenc y Tic ker Ex change US D Market C ap ($m) C urrent Price 1 Wk 1 Mth 3 Mth 6 Mth 1 Yr 52 W eek
A cc eleriz e New Me dia , Inc. USD A C LZ OTCB B 9.4 0.3 5 -12 .5% -12 .5% -36. 4 % -53. 3 % NM -56 .3%
A ctoz S o ft C o . , Ltd. KRW A 052 790 K OS E 73. 3 11, 5 50.0 0 9 .0% 9.5% 12. 1% 41. 7 % 40 .9% -9. 4%
A Q Inte ra ctive, I nc . J PY 3 838 TSE 23. 6 39, 0 00.0 0 3 0. 9% 3 2. 7% -19. 2 % -74. 5 % -87 . 0% -88 .6%
A ss oc iated Media Holdings Inc . USD A S MH OTCP K 0.2 0.0 1 -50 .0% -37 .5% -37. 5 % NM -87 . 5% -93 .8%
B oomJ Inc USD B O MJ OTCB B 36. 8 0.9 0 2 0. 0% -28 .0% -51. 4 % -71. 7 % -30 . 8% -72 .7%
B right T hings plc GBP AIM :B G T AI M 3.1 0.0 2 3 1. 3% 3 7. 6% 43. 3% -11. 3 % -38 . 8% -59 .5%
B ro adW e bAs ia Inc. USD BW BA OTCP K 85. 7 1.0 1 8 3. 6% 0.0% -32. 2 % -32. 7 % NM -66 .3%
C DC C orp. USD C H IN. A Na sdaqG S 80. 9 0.7 5 -12 .8% -34 .2% -45. 7 % -74. 1 % -80 . 9% -82 .4%
C hina Ga teway C o rporation USD CG WY OTCB B 0.0 0.0 0 -25 .0% -25 .0% -75. 0 % -95. 0 % -99 . 6% -99 .8%
C hines e G ame r Inte rnational TWD G T S M: 3 083 GTS M 227. 5 90.3 0 0 .0% -4 . 4% 5.6 % 9.7 % 6 . 2% -35 .0%
C orne rW orld C orporation USD CWR L OTCB B 19. 3 0.4 1 6 4. 0% -12 .8% 105. 0% -32. 8 % -72 . 7% -73 .5%
DA DA S pA E UR C M:DA CM 116. 9 5.6 3 -12 .4% -18 .4% -26. 3 % -48. 6 % -58 . 2% -65 .2%
DigitalFX Internationa l, Inc . USD DXN AM E X 3.0 0.1 2 1 6. 1% 3 3. 3% -62. 5 % -77. 4 % -89 . 6% -90 .8%
DigitalP os t Inte rac tive, Inc. USD D GL P OTCB B 1.2 0.0 2 -14 .3% 1 2. 5% -55. 0 % -78. 8 % -95 . 5% -96 .8%
DigitalTo wn, I nc . USD DG T W OTCB B 40. 7 1.5 0 -34 .8% -44 .4% -40. 0 % -57. 1 % -31 . 8% -75 .4%
Dolphin D igital Me dia, In c. USD DP DM OTCB B 34. 1 0.7 0 0 .0% -12 .5% -26. 3 % NM NM -38 .1%
E olith C o. L td. KRW A 041 060 K OS E 17. 8 5 30.0 0 2 .9% -7 . 0% -12. 4 % -36. 5 % -72 . 8% -75 .5%
E xte ns ions, Inc . USD E XT I OTCP K 18. 9 0.2 0 3 3. 3% -80 .2% 100. 0% NM 33 .3% -80 .2%
F inanc ial Media G roup, Inc. USD F NG P OTCB B 1.3 0.0 2 3 3. 3% -73 .3% -95. 0 % -97. 3 % -89 . 5% -98 .0%
F luid Mus ic C ana da, I nc . C AD T S X :F MN TSX 16. 9 0.4 0 2 7. 0% 2 9. 0% 0.0 % -76. 3 % NM -80 .4%
F rogs ter I nterac tive P ic tures A G E UR FRG XT R A 13. 9 4.6 3 -6. 5% -21 .1% 12. 9% -9.9% -42 . 1% -49 .2%
G amania Digital E ntertainment C o. , Ltd. TWD 6 180 GTS M 93. 6 20.8 0 -3. 5% -4 . 6% 47. 5% -16. 1 % -18 . 8% -43 .7%
G ameO n C o Ltd. J PY 3 812 TSE 132. 5 1 19, 5 00.0 0 -2. 8% -2 . 5% 68. 3% -22. 1 % -0 .4% -26 .9%
G eoS entric O yj E UR G E O1 V HLS E 34. 4 0.0 3 0 .0% -25 .0% 0.0 % -50. 0 % -50 . 0% -66 .7%
G ia nt I nterac tive G ro up, Inc . USD GA NY S E 1, 3 78.7 5.8 0 -2. 7% -10 .6% -12. 0 % -36. 6 % -44 . 2% -66 .3%
G igaMedia Ltd. USD G IG M Na sdaqG S 352. 3 6.5 2 -1. 2% 8.5% -6.1% -45. 8 % -65 . 5% -68 .9%
G oF ish C orporation USD G OFH OTCB B 5.1 0.2 0 -13 .0% -9 . 1% 0.0 % -20. 0 % -35 . 5% -66 .1%
G ravity C o. , Ltd USD G R VY Na sdaqG M 20. 0 0.7 2 -5. 5% 4 3. 6% -20. 2 % -32. 9 % -72 . 4% -73 .4%
G ree, Inc . J PY T S E :36 32 TSE 0.0 5, 9 30.0 0 8 .4% 1 0. 2% NM NM NM -5. 9%
G ungHo O nline E nterta inment, In c. J PY 3 765 OS E 135. 7 1 06, 6 00.0 0 8 .2% 8.2% 11. 5% -51. 1 % -37 . 7% -75 .5%
H anbitS o ft, I nc . KRW A 047 080 K OS E 47. 9 3, 0 40.0 0 -1. 1% -12 .4% 1.7 % -21. 5 % -54 . 4% -58 .2%
IA S E nergy, Inc . USD IA S C . A OTCB B 1.8 0.0 3 1 9. 0% -16 .7% -70. 6 % -90. 0 % -93 . 6% -93 .8%
IdeaE dge, Inc . USD O T C B B : IDA E OTCB B 17. 7 0.4 2 -35 .4% -49 .4% -77. 9 % -82. 5 % -62 . 9% -85 .2%
J umbuc k E ntertainment P ty L td. A UD AS X:J MB AS X 15. 0 0.4 8 2 3. 1% 2 3. 1% -17. 9 % -4.0% -12 . 7% -39 .2%
J umpT V Inc . C AD T S X:J T V TSX 40. 3 0.4 4 4 6. 7% 4.8% -22. 8 % -51. 1 % -65 . 9% -69 .7%
K aboo se Inc . C AD T S X :K A B TSX 48. 6 0.4 3 1 3. 2% 2 1. 1% -13. 1 % -45. 6 % -80 . 5% -82 .2%
K ingso ft C o . Ltd. H KD 3 888 S E HK 368. 2 2.6 6 0 .0% -4 . 3% 38. 5% -18. 4 % 2 . 3% -38 .3%
Lingo Media C orporation C AD T S X V :L M T S XV 10. 9 1.0 5 7 .1% -11 .8% -11. 0 % -40. 3 % -7 .9% -52 .3%
Live W orld Inc . USD LVWD OTCP K 1.9 0.0 6 10 0.0% 1 00.0 % -53. 8 % -72. 7 % -77 . 8% -92 .0%
Lo ok S mart, L td. USD LO O K Na sdaqG M 23. 0 1.3 5 2 .3% -20 .1% -22. 4 % -54. 5 % -62 . 9% -71 .9%
Ma gnitude Information S ys tems Inc . USD MA G Y OTCB B 11. 3 0.0 3 2 9. 4% 4.0% 116. 7% 30. 0 % 73 .3% -25 .7%
Mixi, Inc. J PY 2 121 TSE 909. 7 5 34, 0 00.0 0 1 0. 1% -2 . 4% -16. 4 % -22. 5 % -43 . 8% -60 .1%
Mo ggle, I nc USD MMO G OTCB B 70. 6 2.0 0 3 3. 3% 3 3. 3% NM NM NM 0 . 0%
N ational Lampoo n Inc. USD N LN AM E X 6.9 0.7 3 7 .3% -17 .1% -21. 3 % -58. 8 % -68 . 1% -69 .6%
N E O W IZ G ames C orpo ra tio n KRW A 095 660 K OS E 163. 0 23, 6 00.0 0 2 .6% 9.8% 48. 0% -1.7% -24 . 7% -41 .0%
N etDra gon W ebS oft, Inc. H KD 7 77 S E HK 187. 4 2.7 5 3 .8% -7 . 7% 8.7 % -69. 5 % -78 . 2% -80 .1%
N eteas e.c om Inc. USD NT E S Na sdaqG S 2, 3 04.8 18.7 3 5 .7% -17 .8% -17. 9 % -23. 2 % 6 . 4% -31 .0%
N eX plo re C orpo ra tio n USD NX PC OTCP K 30. 7 0.5 5 0 .0% -45 .0% -45. 0 % -15. 4 % NM -62 .1%
N gi G roup Inc . J PY 2 497 TSE 47. 2 34, 3 00.0 0 -23 .1% -32 .7% -57. 1 % -60. 9 % -74 . 8% -82 .9%
N orthgate T ec hno logies L imited IN R 59 0057 BSE 27. 9 38.9 0 -8. 5% -44 .5% -48. 7 % -87. 0 % -92 . 5% -92 .9%
O pen T ext C orp. USD OTE X Na sdaqG S 1, 8 02.6 34.7 4 7 .2% 1 3. 0% 18. 0% 14. 3 % 10 .8% -11 .1%
O penwave S y s tems Inc . USD OP WV Na sdaqG S 66. 9 0.8 1 2 9. 8% 1 8. 4% 3.2 % -44. 5 % -60 . 5% -71 .9%
P erfec t W o rld C o., L td. USD PWRD Na sdaqG S 793. 5 13.9 1 -10 .0% -24 .2% -27. 6 % -49. 6 % -39 . 5% -58 .5%
P hoto C hannel Netwo rk s Inc. C AD T S X V :P N T S XV 46. 4 1.7 2 -1. 1% 1 3. 2% -24. 9 % -48. 7 % -55 . 3% -58 .6%
Q uepas a C orp. USD QPS A Nas daqC M 23. 7 1.8 7 -1. 1% -1 . 6% -15. 0 % -30. 2 % -43 . 8% -52 .8%
S handa In terac tive E ntertainment Ltd. USD S NDA Na sdaqG S 2, 0 27.4 29.2 2 4 .9% -12 .6% 7.5 % 4.8 % 10 .5% -23 .6%
S hutterfly , I nc . USD S F LY Na sdaqG S 171. 0 6.8 2 1 3. 3% -6 . 6% -15. 9 % -30. 4 % -56 . 4% -66 .2%
S K C ommun ic ations C o. , L td. KRW A 066 270 K OS E 230. 2 7, 7 80.0 0 1 0. 4% 3 6. 0% 40. 2% -44. 0 % -72 . 1% -72 .6%
S NAP Interac tive, Inc . USD S T VI OTCB B 10. 7 1.0 0 -1. 0% 4 2. 9% 150. 0% 81. 8 % 25 .0% -9. 1%
S NM G lobal H o ldings USD S NMN OTCP K 0.0 0.0 0 10 0.0% -50 .0% -99. 4 % -99. 9 % -10 0.0% -100 . 0%
S park Netwo rk s , I nc . USD LO V AM E X 51. 7 2.4 1 -0. 8% -5 . 5% -19. 4 % -43. 2 % -56 . 0% -57 .8%
S pec trumDN A , Inc. USD S P XA OTCB B 4.9 0.1 0 -47 .4% -33 .3% -60. 0 % NM NM -83 .3%
T enc e nt H o ldings L td. H KD 7 00 S E HK 10, 894. 1 47.0 5 6 .3% -9 . 5% -10. 0 % -29. 9 % 0 . 6% -34 .7%
T he P a re nt C o mpany USD K ID S . Q OTCP K 0.7 0.0 3 -14 .3% -40 .0% -96. 6 % -98. 5 % -99 . 4% -99 .5%
T he9 Limited USD NCTY Na sdaqG S 411. 4 14.9 0 -5. 8% 6.4% 6.6 % -40. 0 % -13 . 3% -47 .7%
T heS tree t. c om, Inc. USD TSCM Na sdaqG M 87. 5 2.8 7 -1. 0% -13 .8% -22. 4 % -55. 7 % -73 . 3% -75 .9%
T ree. C om, Inc . USD TREE Na sdaqG M 37. 5 4.0 0 -7. 2% 2 3. 8% 45. 5% NM NM -64 .0%
U nis erve C ommu nic ations C orp. C AD T S X V:U S S T S XV 2.0 0.1 0 2 5. 0% 1 50.0 % -44. 4 % -50. 0 % -76 . 7% -78 .9%
U nited O nline Inc . USD U NT D Na sdaqG S 491. 8 6.0 0 -1. 5% -0 . 3% -16. 6 % -46. 2 % -46 . 9% -52 .0%
U O MO M edia, I nc USD UO MO OTCB B 6.8 0.0 8 0 .0% 1 8. 5% -48. 4 % -80. 5 % -88 . 9% -90 .0%
V OI S , Inc . USD V O IS OTCB B 5.4 0.7 5 8 7. 5% 1 50.0 % 0.0 % -81. 3 % NM -86 .6%
W ebze n Inc. USD W ZE N Na sdaqG M 17. 2 1.4 5 1 .4% 6 8. 6% 19. 6% -49. 3 % -54 . 8% -67 .4%
W izz ard S oftware C orpo ra tio n USD W ZE AM E X 31. 6 0.7 0 -2. 8% -21 .3% -28. 6 % -53. 0 % -75 . 8% -78 .5%
W oo zy F ly , I nc . USD W ZY F OTCB B 2.6 0.1 5 0 .0% 0.0% NM NM NM -96 .3%
W orlds . com Inc . USD W DD D OTCB B 11. 5 0.2 2 3 7. 5% 1 0. 0% -8.3% -37. 1 % -45 . 0% -51 .1%
W y nds to rm C orpo ra tio n USD W Y ND OTCB B 2.3 0.1 3 4 .2% 4.2% -37. 5 % -79. 2 % NM -85 .3%
X I NG AG E UR O1BC XT R A 188. 0 28.2 1 -2. 7% 3.7% 19. 5% -2.1% -29 . 5% -39 .5%
Y edangO nline C orp. KRW A 052 770 K OS E 76. 9 6, 8 30.0 0 -3. 7% 7.9% 10. 0% -24. 6 % -13 . 0% -45 .6%
Y nk K o re a Inc. KRW A 023 770 K OS E 6.7 3, 8 05.0 0 -3. 7% -13 .6% -39. 6 % -59. 3 % -79 . 2% -80 .9%
Z ipLoc al Inc. C AD T S XV :ZIP T S XV 1.3 0.0 2 10 0.0% 3 00.0 % 100. 0% -81. 8 % -84 . 0% -90 .9%
A verage 310. 2 9.1% 3.9% -9.4 % -43.0% -47.9% -64.2%

Figure 24. Price Performance

Source. Capital IQ
 Page 14

Comparable C ompany Analys is > Web 2.0

Valuation Multiples

P ri mary U S D Mar ket T E V/L T M T E V / NTM T E V /L T M TE V /NT M

C ompany Na me E xc ha nge Ti c ker C ap ($m) R ev enue R e venue E B I TDA E B IT DA P /L TM E P S P /NT M E P S P /T angB V
Acce lerize N ew Media, Inc. O T C BB AC L Z 9.4 4 .3x - - - - - -
Actoz S oft C o. , Ltd. K OS E A052790 73 . 3 0 .9x - 5.0 x - 1 4. 3x - 1. 4x
AQ Inte ractive, Inc. TS E 3 838 23 . 6 - - - - - - 0. 4x
As s ociated Me dia Holdings Inc. O T C PK A S MH 0.2 10. 2x - - - - - -
BoomJ Inc O T C BB B O MJ 36 . 8 36. 9x - - - - - -
Br ight T hings plc A IM A IM: B GT 3.1 13. 0x - - - - - -
Br oadW ebA s ia Inc. O T C PK B W BA 85 . 7 - - - - - - -
C DC C orp. Na sdaqGS C HIN .A 80 . 9 0 .3x 0. 3x 7.3 x 5.5 x - 11 .2 x -
C hina G ateway C orpora tion O T C BB C GW Y 0.0 0 .0x - - - - - -
C hines e G amer International GTSM G T S M: 30 83 227 . 5 4 .5x - 9.5 x - 1 3. 7x - 4. 5x
C ornerW orld C orporation O T C BB C WR L 19 . 3 33. 7x - 6.7 x - - - -
DAD A S pA CM C M:DA 116 . 9 0 .7x - 4.6 x - 7. 2x - -
Digita lF X Inte rnational, Inc. A ME X DXN 3.0 0 .3x - - - - - -
Digita lP os t Inter active, Inc. O T C BB DG LP 1.2 5 .3x - - - - - -
Digita lT own, Inc. O T C BB DG T W 40 . 7 - - - - - - -
Dolphin Digita l Me dia , Inc. O T C BB DP DM 34 . 1 - - - - - - -
E olith C o. Ltd. K OS E A041060 17 . 8 1 .0x - - - - - -
E xtensions, Inc. O T C PK E XT I 18 . 9 - - - - - - -
F ina ncia l Me dia Group, Inc. O T C BB F NGP 1.3 0 .1x - 0.4 x - - - -
F luid Mus ic C anada , Inc. TS X T S X: F MN 16 . 9 - - - - - - 1. 4x
F rogs te r Inte ractive P icture s A G XT R A FRG 13 . 9 2 .6x - - - - - 1. 3x
Ga mania Digital E nterta inme nt C o. , L td. GTSM 6 180 93 . 6 0 .6x - 3.7 x - 1 0. 7x - 1. 4x
Ga meO n C o L td. TS E 3 812 132 . 5 0 .8x - 3.2 x - 1 2. 8x - 1. 6x
Ge oS entric O yj HL S E G E O1 V 34 . 4 5 .6x - - - - - 5. 3x
Giant Inte ractive G roup, Inc. NY S E GA 1 , 378 . 7 - - - - 1. 3x 12 .1 x 0. 3x
GigaMe dia L td. Na sdaqGS G IGM 352 . 3 1 .4x 1. 3x 6.0 x 5.3 x 1 0. 4x 8. 9x 3. 4x
GoF is h C orpor ation O T C BB G OF H 5.1 2 .5x - - - - - -
Gr avity C o., Ltd Na sdaqGM GRVY 20 . 0 - - - - - - -
Gr ee, Inc. TS E T S E :3632 0.0 - - - - - - -
GungHo Online E nte rtainme nt, Inc. OSE 3 765 135 . 7 1 .0x - 6.5 x - - - 38. 2x
HanbitS oft, Inc. K OS E A047080 47 . 9 0 .6x - - - - - 1. 6x
IA S E ne rgy, Inc. O T C BB IAS C . A 1.8 - - - - - - -
IdeaE dge, Inc. O T C BB OT C B B :IDAE 17 . 7 - - - - - - 15. 3x
J umbuck E ntertainme nt P ty Ltd. ASX A S X: J MB 15 . 0 1 .1x - 2.4 x - 8. 6x - 1. 9x
J umpT V Inc. TS X T S X :J T V 40 . 3 4 .3x - - - - - 2. 9x
Ka boos e Inc. TS X T S X: K AB 48 . 6 0 .9x 0. 8x 12. 2 x 6.2 x - - -
Kings oft C o. Ltd. S E HK 3 888 368 . 2 2 .6x - 7.8 x - 1 0. 8x - 2. 4x
Lingo Me dia C orpora tion T S XV T S XV : LM 10 . 9 3 .5x - - - - - -
Live World Inc. O T C PK LV W D 1.9 - - - - - - 0. 9x
LookS mar t, Ltd. Na sdaqGM LO OK 23 . 0 - - - - 3. 3x - 0. 8x
Magnitude Informa tion S ys tems Inc. O T C BB MAG Y 11 . 3 - - - - - - -
Mixi, Inc. TS E 2 121 909 . 7 6 .4x - 16. 1 x - 3 9. 3x - 6. 7x
Moggle , Inc O T C BB MMOG 70 . 6 - - - - - - -
National L ampoon Inc. A ME X N LN 6.9 1 .6x - - - - - 19. 4x
NE O W IZ G ame s C orpora tion K OS E A095660 163 . 0 1 .2x - 4.4 x - 9. 3x - 5. 5x
NetDra gon We bS oft, Inc. S E HK 7 77 187 . 4 0 .1x - 0.2 x - 5. 3x - 1. 0x
Netea s e. com Inc. Na sdaqGS NT E S 2 , 304 . 8 - - - - 1. 7x 10 .1 x 0. 5x
NeXplore C or por ation O T C PK NXP C 30 . 7 - - - - - - -
Ngi G roup Inc. TS E 2 497 47 . 2 - - - - 5. 2x - 0. 5x
Northgate T e chnologies L imited B SE 59 0057 27 . 9 0 .2x - 1.1 x - 1. 7x - -
Open T e xt C or p. Na sdaqGS OTEX 1 , 802 . 6 2 .5x 2. 3x 9.9 x 8.6 x 3 6. 8x 13 .8 x -
Openwa ve S ys tems Inc. Na sdaqGS OPW V 66 . 9 - - - - - - 0. 9x
Pe rfect W orld C o., Ltd. Na sdaqGS PW R D 793 . 5 - - - - 1. 2x 6. 7x 0. 4x
PhotoC hannel Ne tworks Inc. T S XV T S XV : P N 46 . 4 3 .3x 2. 0x - 6.1 x - 27 .3 x 16. 2x
Quepas a C orp. Na sdaqC M QP S A 23 . 7 - - - - - - 9. 7x
S handa Intera ctive E nte rtainment L td. Na sdaqGS S NDA 2 , 027 . 4 - - - - 1. 8x 10 .6 x 1. 0x
S hutterfly, Inc. Na sdaqGS S F LY 171 . 0 0 .6x 0. 7x 5.1 x 3.8 x 2 8. 1x - 1. 1x
S K C ommunications C o. , Ltd. K OS E A066270 230 . 2 1 .5x - 16. 4 x - - - -
S NA P Inter active, Inc. O T C BB S TV I 10 . 7 4 .2x - 41. 2 x - 5 9. 1x - 7. 8x
S NM G lobal Holdings O T C PK S NMN 0.0 1 .1x - - - - - -
S park Ne tworks , Inc. A ME X L OV 51 . 7 0 .8x - 4.1 x - 5. 2x - -
S pectrumDNA, Inc. O T C BB S PX A 4.9 - - - - - - 5. 2x
T encent Holdings Ltd. S E HK 7 00 10 , 894 . 1 13. 0x - 26. 3 x - 3 5. 7x - 14. 1x
T he P ar ent C ompany O T C PK KIDS .Q 0.7 0 .2x - - - - - -
T he 9 Limited Na sdaqGS NC T Y 411 . 4 - - - - 1. 1x 7. 3x 0. 2x
T he S tre et.com, Inc. Na sdaqGM T SCM 87 . 5 0 .1x 0. 1x 0.8 x 2.6 x 1 4. 8x - 0. 9x
T ree . C om, Inc. Na sdaqGM TR E E 37 . 5 0 .1x 0. 1x - - - - 0. 6x
Unis e rve C ommunications C or p. T S XV T S XV: US S 2.0 0 .2x - 40. 7 x - - - -
Unite d Online Inc. Na sdaqGS UNT D 491 . 8 1 .6x 0. 8x 6.5 x 3.3 x 7. 5x 7. 8x -
UOMO Media, Inc O T C BB UO MO 6.8 15. 1x - - - - - -
VO IS , Inc. O T C BB VO IS 5.4 - - - - - - -
W ebzen Inc. Na sdaqGM WZE N 17 . 2 - - - - - - 0. 0x
W izza rd S oftwa re C orporation A ME X W ZE 31 . 6 5 .1x - - - - - -
W oozyF ly, Inc. O T C BB W ZY F 2.6 - - - - - - -
W orlds .com Inc. O T C BB W DDD 11 . 5 - - - - 4. 2x - -
W ynds torm C orporation O T C BB W Y ND 2.3 - - - - - - -
XING A G XT R A O 1B C 188 . 0 3 .3x - 8.6 x - 1 8. 7x - 5. 1x
Ye dangO nline C orp. K OS E A052770 76 . 9 1 .5x - 6.9 x - 9. 1x - 4. 2x
Ynk K or ea Inc. K OS E A023770 6.7 0 .5x - - - - - -
ZipL ocal Inc. T S XV T S X V: ZIP 1.3 0 .7x - - - - - -
High 10 , 894 . 1 36. 9x 2. 3x 41. 2 x 8.6 x 5 9. 1x 27 .3 x 38. 2x
Low 0.0 0 .0x 0. 1x 0.2 x 2.6 x 1. 1x 6. 7x 0. 0x
Average 310.2 4.0x 0.9x 9.4x 5.2x 13.1x 11.6x 4.8x

Figure 25. Valuation Comparison

Source. Capital IQ
 Page 15

C omparable C ompany Analys is > Web 2.0

S ummary by C ountry
C ompany Na me U S D Market C a p ($m) Avg US D Market C ap ($ m) US D L T M Total R ev ($ m) US D L T M Total E B ITDA ($m ) E B IT DA %
U nited S tates 37 C hin a 1 8, 36 5.5 C hina 2 , 295 .7 C hina 2 ,685 . 2 C hina 1, 3 80. 5 C hina 4 9.9%
C an ada 9 C anada 1, 96 0.6 T aiwan 224 .5 U nited S tates 1 ,565 . 7 C an a da 1 89. 3 A us tralia 4 6.0%
S outh K o re a 9 U nited S ta tes 1, 43 4.6 C a nada 217 .8 C an ada 885 . 1 J apa n 1 26. 1 T a iwa n 2 9.3%
C hina 8 J a pa n 1, 24 8.7 J a pa n 208 .1 S outh K o re a 518 . 2 T aiwan 84. 6 J apa n 2 4.2%
J a pa n 6 T a iwan 67 3.4 Italy 116 .9 J a pan 485 . 2 S outh K ore a 56. 4 U nited S tates 2 3.7%
T a iwa n 3 S ou th K orea 65 2.9 G erm any 101 .0 Hon g K ong 428 . 1 Italy 34. 7 I ndia 1 7.8%
G erma ny 2 G e rm any 20 1.9 Hong K ong 80 .9 T a iwa n 348 . 9 India 24. 4 I ta ly 1 6.0%
A us tra lia 1 I taly 11 6.9 S outh K orea 72 .5 Ita ly 217 . 1 U nited S ta te s 21. 9 H ong K on g 4. 4%
Hon g K ong 1 H ong K on g 8 0.9 U nite d S ta te s 38 .8 India 137 . 0 Hon g K ong 18. 8 S ou th K orea 3. 7%
In dia 1 F inla nd 3 4.4 F inla nd 34 .4 G erma ny 45 . 3 G ermany 12. 5 G e rm any -1 0. 9%
F inla nd 1 I ndia 2 7.9 India 27 .9 A us tra lia 9 .9 A us tralia 4. 6 C anada -1 9. 1%
Ita ly 1 A us tra lia 1 5.0 A us tra lia 15 .0 F in lan d 5 .3 U nited K ingdom -1. 6 U nited K ingdo m NM
U nited K ingdom 1 U nited K ingdo m 3.1 U nite d K in gdom 3 .1 U nited K ingdom 0 .2 F inla nd -12. 1 F inla nd NM

G rand Total 80 G rand Tota l 2 4,815.8 G ra nd Total 310 .2 G rand Total 7 ,331 .2 G ra nd Total 1,9 40.0 G rand T ota l 17.6 %

Figure 26. Comparison by Country

Source. Capital IQ

C omparable C ompany Analys is > Web 2.0

S ummary by Exc hange
C ompany Na me U S D Market C a p ($m) Avg US D Market C ap ($ m) US D L T M Total R ev ($ m) US D L T M Total E B ITDA ($m ) E B IT DA %
OTCB B 20 S E HK 1 1, 44 9.7 S EH K 3 , 816 .6 S E HK 367 . 8 Nas da qG S 1, 1 04. 3 OTCB B 6 9.0%
Nas da qG S 10 N as da qG S 8, 50 2.5 NY S E 1 , 378 .7 Nas da qG S 367 . 7 S E HK 5 29. 0 N YS E 6 3.5%
K OS E 7 NYS E 1, 37 8.7 Na sda qG S 850 .2 NY S E 244 . 7 NY S E 1 55. 3 AS X 4 6.0%
OTCP K 7 TS E 1, 11 3.0 TS E 222 .6 CM 217 . 1 TS E 1 09. 4 S E HK 4 4.0%
Nas da qG M 5 K OS E 61 5.7 GTS M 160 .6 B SE 137 . 0 K OS E 55. 7 GTS M 3 2.0%
TS E 5 GTS M 32 1.1 OS E 135 .7 OSE 113 . 7 GTSM 36. 6 N as daqG S 2 8.9%
A ME X 4 OTCB B 29 3.6 CM 116 .9 TS E 92 . 9 CM 34. 7 TS E 2 6.5%
T S XV 4 XTR A 20 1.9 X TR A 101 .0 Nas da qG M 86 . 3 BSE 24. 4 BSE 1 7.8%
TS X 3 N as da qG M 18 5.1 K OSE 88 .0 GTSM 74 . 2 OSE 16. 7 CM 1 6.0%
S E HK 3 OTCP K 13 8.1 Na sda qG M 37 .0 K OS E 66 . 1 XT R A 12. 5 OS E 1 4.7%
XT R A 2 OS E 13 5.7 TS X 35 .3 TS X 25 . 2 ASX 4. 6 K OS E 6. 2%
GTSM 2 CM 11 6.9 HL S E 34 .4 OTCPK 25 . 2 A ME X -0. 8 N as daqG M -3. 0%
A IM 1 TS X 10 5.8 B SE 27 .9 A ME X 22 . 6 A IM -1. 6 TS X -3. 9%
NY S E 1 A ME X 9 3.2 Na sda qC M 23 .7 XT R A 22 . 6 TS X -5. 8 A ME X -9. 3%
HLS E 1 T S XV 6 0.6 A ME X 23 .3 T S XV 11 . 0 T S XV -7. 6 XTR A -1 0. 9%
Nas da qC M 1 H LS E 3 4.4 OTCP K 19 .7 ASX 9 .9 Nas da qC M -11. 8 OTCP K -1 9. 0%
CM 1 BSE 2 7.9 T S XV 15 .2 HLS E 5 .3 HLS E -12. 1 T S XV -1 9. 9%
B SE 1 N as da qC M 2 3.7 ASX 15 .0 OTCBB 1 .7 OTCP K -27. 1 A IM NM
ASX 1 AS X 1 5.0 OTCB B 14 .7 A IM 0 .2 Nas da qG M -29. 2 N as daqC M NM
OSE 1 A IM 3.1 A IM 3 .1 Nas da qC M 0 .1 OTCB B -47. 0 H LS E NM

G rand Total 80 G rand Tota l 2 4,815.8 G ra nd Total 310 .2 G rand Total 100 .4 G ra nd Total 1,9 40.0 G rand T ota l 17.6 %

Figure 27. Comparison by Exchange

Source. Capital IQ
 Page 16

Financing - Last Three Months (US$ m)

Month Company Name Country Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E Grand Total
Nov-08 HuffingtonPost USA 25.0 25.0
Angie's List USA 18.0 18.0
Rockyou USA 17.0 17.0
PlaySpan USA 16.8 16.8
KickApps USA 14.0 14.0
Multiply USA 5.0 5.0
Machinima.com USA 3.9 3.9
Casual Collective UK 1.0 1.0
Worlds.com Inc. (OTCBB:WDDD) USA 0.5 0.5
Nov-08 Total 1.0 18.0 0.5 3.9 16.8 61.0 101.1

Dec-08 GoFish USA 22.5 22.5

NetShelter Canada 11.1 11.1
Blue Kai USA 10.5 10.5
Taptu UK 9.9 9.9
FooMojo USA 9.9 9.9
Scribd USA 9.0 9.0
Superfish Israel 5.3 5.3
Tagged USA 5.0 5.0
Snapmylife USA 5.0 5.0
Jackbe USA 5.0 5.0
ChakPak India 5.0 5.0
Tumblr USA 4.5 4.5
Playdo Sweden 4.3 4.3
Overlay.TV Canada 3.8 3.8
DotBlu USA 2.0 2.0
Angie's List USA 1.0 1.0
StockTwits USA 0.8 0.8
Dec-08 Total 5.0 22.5 31.9 49.2 1.0 5.0 114.6

Jan-09 AdMob USA 12.5 12.5

Aster Data Systems USA 12.0 12.0
VirtuOz France 11.4 11.4
IMVU USA 10.0 10.0
NewsGator USA 10.0 10.0
Go Internet Media USA 10.0 10.0
Nurien Korea 10.0 10.0
DECA USA 10.0 10.0
Yodle USA 10.0 10.0
RatePoint USA 10.0 10.0
One True Media USA 9.0 9.0
SundaySky Israel 8.0 8.0
Play Hard Sports USA 8.0 8.0
JibJab USA 7.5 7.5
Xobni USA 7.0 7.0
InsideView USA 6.5 6.5
Kewego France 6.2 6.2
Motionbox USA 6.0 6.0
SocialMedia USA 6.0 6.0
AboutUs USA 5.0 5.0
Geni USA 5.0 5.0
Gbox USA 5.0 5.0
Sportsblogs USA 5.0 5.0
E-Global Sports Network USA 3.5 3.5
Tripwolf Austria 2.5 2.5
Hubdub UK 1.2 1.2
Snooth USA 1.0 1.0
CoveritLive Canada 1.0 1.0
Identi.ca Canada 0.2 0.2
Meez USA
Jan-09 Total 2.2 45.2 68.9 73.2 10.0 199.5

Grand Total 3.2 23.0 23.0 80.9 134.9 135.2 5.0 10.0 415.2

Figure 28. Financing, Last Three Months

Source. Company reports
 Page 17

RELEVANT DISCLOSURES APPLICABLE TO: NONE

LIST OF DISCLOSURE TERMS:

1. None applicable.

ANALYST CERTIFICATION
Each analyst of 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.

I n f o r ma t i o n a b o u t 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 s t 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 ch t o cl 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 m me n d a t i o n s wh i c h a r e i n e a c h
o f o u r r a t i n g c a t e g o r i e s i s a v a i l a b l e o n o u r we b si t e a t ww w. r e s e a r ch c a p i t a l . c o 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 ve d t o b e r e l i a b l e b u t i t s a c cu r a c y o r co mp l e t e n e ss 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 R e s e a r c h Ca 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 l i t y . 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 ct 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 cu r i t i e s me n t i o n e d h e r e i n . Co 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 ss e d p e r mi s si o n o f R e se a r ch
C a p i t a l C o r p o r a t i o n . ( U . S . I n s t i t u t i o n a l Cl i e n t s — Re s e 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 R e s e a r c h C a p i t a l Co r p o r a t i o n ) a cc 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 ce i vi n g t h i s r e p o r t s h o u l d e f f e ct t r a n s a ct i o n s i n s e c u r i t i e s d i sc u s se d
i n t h e r e p o r t t h r o u g h R e s e a r ch C a p i t a l U . S . A . I n c. , a B r o k e 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 cu r i t i e s a n d E xc h a n g e C o m mi s si o n ) .

Tor on to 4 16. 8 60. 76 00 M ontr eal 51 4. 39 9. 150 0 V anco u ver 60 4. 66 2. 180 0 C al gar y 40 3. 26 5. 740 0 R egi na 306. 566. 7550

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