The document summarizes activity in the Web 2.0 sector for April 2009. It notes that April saw the fewest financings of any month that year, totaling $144.5 million across 21 deals. However, Disney's investment in Hulu was a strategic move bringing three major media companies together in online video distribution. The document also highlights that the video sector saw the most capital raised over the prior three months, which could indicate future trends.

1. SOFTWARE & SERVICES 5 MAY 2009
DAVID SHORE, CFA, MBA 416.860.6784
WEB 2.O WEEKLY david.shore@researchcapital.com
Arun Thomas (Associate) 416.860.7666
VIDEO SECTOR LEADS ACTIVITY IN APRIL – DISNEY INVESTS IN HULU
ACT I VIT Y SL O W ED I N AP RIL – SL OW E ST MO NT H I N 2 009
The month of April saw 21 financings totalling $144.5 million, with not enough transactions (volume and size) to boost
levels above any month in 2009. In perspective, February and March closed off at $185.5 mm and $159.5 million,
respectively. On a much more positive note, we saw the announcement from Disney taking a significant position in
Hulu - a strategic move in W eb-TV distribution. This brings together three of the biggest broadcast and cable network
owners under the same banner. Additionally, we would like to highlight that from a sector perspective, video saw the
most amount of capital raised at $75.4 million (Figure 4) over a 3-month period. Is this an indication of things to
come?
Financing by Month
800.0 40
737.1
700.0 35
653.9
600.0 30
500.0 25
461.7
(US$mm)
(#)
400.0 20
361.3
335.0
308.3
300.0 15
244.0
225.8
193.0
192.6 185.5
200.0 10
159.5
144.5
138.1 132.3
129.0 127.4
114.6
111.0
101.1
87.3 85.5
100.0 5
73.6
71.5
69.0
57.7
56.3 47.5 45.6
43.4
42.0
40.5
38.8 38.8 38.6
30.0
24.4 15.4
21.4 23.9 13.2 18.8
16.5
12.5
8.0
0.0 0
05
6
06
7
7
8
08
5
05
06
6
6
06
07
7
7
07
08
8
8
08
09
9
-0
-0
-0
l -0
-0
l -0
-0
l -0
-0
-0
l -0
-0
v-
v-
v-
p-
n-
p-
n-
p-
n-
p-
n-
ay
ay
ov
ay
ar
ar
ar
ar
Ju
Ju
Ju
Ju
No
No
No
Se
Ja
Se
Ja
Se
Ja
Se
Ja
M
M
M
M
N
M
M
M
Capital Market Activity: The month of April closed with 21 companies raising money, with GOOM Radio and
Collective Media leading the list with $16 million and $20 million, respectively. The Rubicon Project (ad network
sector) and Marin Software (Ad Networks sector) followed GOOM Radio, raising $13 million.
Price Performance: Most of the companies in our universe had positive stock price performances over the past
week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the
week.Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB)
had the worst return, dropping 10.7% in the week. Four companies had better than 20% price increases last week.
This report has been created b y Anal ysts that are emplo yed b y Research Capital Corporation, a Canadian Investment Dealer.
For further disclosures, please see last page of this report.
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

2. Page 2
THE WEB 2.0 UNIVERSE
Ninety-tw o public Web 2.0 companies identified: Our W eb 2.0 universe contains 92 companies, with a combined market
cap of ~$45 billion (Figure 1). The average market cap for the group is ~$493 million (but a median of only $47.8 million),
with average trailing revenue of $148.0 million (median $54.4 million). The companies are also generally profitable, with a
median EBITDA margin of 15.9%. On a valuation basis, the overall average is 4.7x trailing revenue (median 1.4x) and 9.7x
trailing EBITDA (median 8.5x). Fifteen of the companies have more than 500 employees.
C o m p a r a bl e C o m pa n y A na l ys i s > W e b 2 .0
T r a di ng C u rr e nt U S D M a rk e t U S D L T M To ta l US D L T M T ota l E B I TD A T E V /L T M T E V /L T M
C om pa n y N a m e L TM a s o f T ic k e r E x c h a ng e C u rr e nc y HQ P r ic e C a p ($ m ) R e v ($ m ) E B I TDA ($ m ) % R e v e nu e E B IT DA E m p l oy e e s
A c c e le riz e N ew Me dia , Inc . 1 2/31 /200 8 A C LZ OT C BB USD U nited S ta tes 0 . 44 1 2. 0 3. 8 (4 . 8) NM 4. 3 x - 11
A c t oz S of t C o. , L td. 1 2/31 /200 8 A 0 527 90 KOS E KR W S o uth K or ea 14, 150 9 5. 0 73. 6 1 4. 7 20 . 0% 0. 9 x 4. 5x NA
A Q Inte ra c t iv e , Inc . 1 2/31 /200 8 38 38 TSE JPY J ap an 46 , 950 . 00 2 5. 7 60. 7 4 .9 8 . 0% - - NA
A s s o c ia ted Med ia H oldings Inc . 6 /30 /200 7 A S MH OT C PK USD U nited S ta tes 0 0 .1 0. 1 (2 . 3) NM 8. 1 x - 3
B ig st ring C o rp . 1 2/31 /200 8 BS GC OT C BB USD U nited S ta tes 0 . 02 1 .1 0. 1 (2 . 1) NM 29. 8 x - 4
B e ta w a v e C o rpo ra tion 1 2/31 /200 8 B W AV OT C BB USD U nited S ta tes 0 3 .2 7. 7 (1 1. 8) NM - - 45
B e yo nd C o mm er c e, In c . 1 2/31 /200 8 BYOC OT C BB USD U nited S ta tes 1 . 33 5 5. 0 1. 8 (8 . 6) NM 31. 9 x - 43
B r ight T hings p lc 9 /30 /200 8 A IM : B G T A IM GBP U nited K ing dom 0 6 .6 0. 2 (1 . 7) NM 26. 6 x - 9
B r oa dW eb A s ia Inc . 9 /30 /200 8 BW BA OT C PK USD U nited S ta tes 0 . 30 2 5. 3 0. 0 (4 . 6) NM - - 46
C D C C or p. 9 /30 /200 8 C HIN . A N a s da qG S USD H ong K on g 1 14 1. 2 428 . 1 1 8. 8 4 . 4% 0. 5 x 1 0. 5 x 3 , 12 5
C ha ngy ou. c om L imite d 1 2/31 /200 8 C YOU N a s da qG S USD C hina 32 .62 1, 6 71. 8 201 . 8 11 8. 0 58 . 5% 8. 3 x 1 4. 2 x 628
C hina G a te wa y C or po ra tio n 9 /30 /200 8 CGWY OT C BB USD U nited S ta tes 0 0 .0 6. 7 (6 . 6) -9 8.9% 0. 0 x - 37
C hine s e G a m er In ter na tion a l 1 2/31 /200 8 G T S M : 308 3 GTSM TW D T a iw a n 224 .50 57 7. 6 47. 2 2 3. 8 50 . 5% 11. 1 x 2 2. 0 x NA
C or ner W or ld C or por a tion 1 /31 /200 9 C WR L OT C BB USD U nited S ta tes 0 6 .4 1. 3 NM NM 6. 0 x - NA
C y ber plex Inc . 1 2/31 /200 8 T S X :C X TSX C AD C a na da 1 . 72 7 8. 2 48. 6 4 .1 8 . 4% 1. 6 x 1 8. 7 x NA
D A D A S pA 9 /30 /200 8 C M:D A CM EUR Ita ly 7 14 8. 7 226 . 2 3 6. 1 16 . 0% 0. 9 x 5. 3x 574
D X N Ho ld ings B hd 1 1/30 /200 8 DXN KL S E MY R Ma la ys ia 0 . 40 2 6. 0 78. 6 1 0. 5 13 . 3% 0. 6 x 4. 4x NA
D ibz Inte rn a tion a l, Inc . NA D IB Z OT C PK USD U nited S ta tes 0 0 .0 NA NM NM - - NA
D igita lP o st Inte ra c tiv e , Inc . 9 /30 /200 8 D G LP OT C BB USD U nited S ta tes 0 . 02 1 .3 0. 4 (3 . 3) NM 5. 4 x - 11
D igita lT ow n, In c . 1 1/30 /200 8 DGTW OT C BB USD U nited S ta tes 3 7 8. 5 NM (2 . 5) NM - - 3
D olph in D ig ita l Me dia , In c . NA DPDM OT C BB USD U nited S ta tes 0 . 55 2 7. 1 NA NM NM - - 6
E o lith C o. L td. 1 2/31 /200 7 A 0 410 60 KOS E KR W S o uth K or ea 885 5 0. 1 19. 7 (0 . 1) -0 . 3% 2. 5 x - NA
E x te ns ions , Inc . 1 2/31 /200 8 E XTI OT C PK USD U nited S ta tes 0 . 15 1 4. 2 NM NM NM - - NA
F ina n c ia l Med ia G r oup , Inc . 1 1/30 /200 8 F NG P OT C BB USD U nited S ta tes 0 0 .2 6. 8 1 .2 18 . 3% - - 22
F luid M us ic C a na d a , In c . 9 /30 /200 8 T S X : F MN TSX C AD U nited S ta tes 0 . 55 2 4. 5 4. 2 (8 . 6) NM 2. 5 x - 29
F ro gs te r In ter a c tiv e P ic tu re s A G 6 /30 /200 8 FRG XT R A EUR G er m a ny 9 2 7. 3 5. 4 (3 . 3) -6 0.6% 5. 0 x - NA
G a ma nia D igita l E n ter ta inm en t C o. , L td. 1 2/31 /200 8 61 80 GTSM TW D T a iw a n 34 .55 15 8. 8 114 . 0 1 6. 5 14 . 5% 1. 2 x 8. 5x NA
G a me O n C o L td. 1 2/31 /200 8 38 12 TSE JPY J ap an 96, 600 9 4. 0 75. 1 1 9. 4 25 . 9% 0. 5 x 2. 0x NA
G e oS e ntr ic O yj 1 2/31 /200 8 G E O1 V H LS E EUR F inla nd 0 . 04 4 7. 8 5. 8 (1 3. 1) NM 6. 9 x - 94
G ia n t Int era c tiv e G r oup , Inc . 1 2/31 /200 8 GA NYSE USD C hina 8 1, 8 62. 2 233 . 6 14 4. 6 61 . 9% - - NA
G iga Med ia L td . 1 2/31 /200 8 G IG M N a s da qG S USD T a iw a n 6 . 16 33 2. 8 190 . 4 4 6. 0 24 . 2% 1. 4 x 5. 6x NA
G r a v ity C o. , L td 9 /30 /200 8 G R VY N a s da qG M USD S o uth K or ea 1 2 7. 2 38. 6 7 .4 19 . 2% - - 636
G r ee, Inc . 6 /30 /200 8 T S E : 363 2 TSE JPY J ap an 5 , 520 .00 1, 2 40. 4 29. 6 1 0. 6 36 . 0% 39. 8 x - NA
G u ngH o O nlin e E n ter ta inm en t, In c . 1 2/31 /200 8 37 65 OS E JPY J ap an 1 37, 700 15 8. 8 113 . 2 2 0. 2 17 . 8% 1. 2 x 6. 8x NA
H a n bitS of t, Inc . 1 2/31 /200 8 A 0 470 80 KOS E KR W S o uth K or ea 4 , 485 .00 7 7. 5 54. 8 (1 5. 5) -2 8.2% 1. 1 x - NA
IA C /In ter A c tiv eC or p. 1 2/31 /200 8 IA C I N a s da qG S USD U nited S ta tes 16 2, 4 19. 2 1 , 44 5. 1 6 4. 6 4 . 5% 0. 5 x 1 0. 3 x 3 , 20 0
IA S E n erg y, Inc . 1 /31 /200 9 IA S C . A OT C BB USD C a na da 0 . 27 1 8. 9 0. 0 (0 . 8) NM - - NA
Id ea E d ge, Inc . 1 2/31 /200 8 O T C B B : ID A E OT C BB USD U nited S ta tes 0 1 8. 1 0. 0 (4 . 6) NM - - NA
is ee med ia Inc . 1 2/31 /200 8 IE E TS XV C AD C a na da 0 . 09 3 .9 1. 3 (5 . 0) NM 1. 8 x - NA
J um bu c k E nt er ta inm ent P ty L t d. 1 2/31 /200 8 A S X : J MB AS X AU D A u s tra lia 0 1 7. 0 13. 2 4 .9 37 . 2% 0. 9 x 2. 5x 72
J um pT V Inc . 1 2/31 /200 8 T S X :J T V TSX C AD C a na da 0 . 65 6 2. 7 13. 4 (8 . 4) -6 2.6% 3. 5 x - 237
K a boo s e In c. 1 2/31 /200 8 T S X :K AB TSX C AD C a na da 1 7 1. 2 69. 5 6 .9 10 . 0% 1. 1 x 1 1. 2 x NA
K in gs oft C o . L td . 1 2/31 /200 8 38 88 S E HK HKD C hina 3 . 53 48 9. 6 120 . 2 4 6. 6 38 . 7% 3. 4 x 8. 8x NA
L in go M edia C o rp or a tion 9 /30 /200 8 T S XV : LM TS XV C AD C a na da 1 9 .8 3. 4 (1 . 5) -4 2.5% 3. 1 x - NA
L iv e W o rld Inc . 1 2/31 /200 8 LV WD OT C PK USD U nited S ta tes 0 . 13 4 .0 11. 8 (0 . 5) -4 . 3% 0. 3 x - NA
L o ok S m a r t, L td. 1 2/31 /200 8 LO OK N a s da qG M USD U nited S ta tes 1 2 1. 9 65. 0 (2 . 0) -3 . 1% - - 90
M a gn itu de Infor m a tion S y s tem s Inc . 9 /30 /200 8 MA G Y OT C BB USD U nited S ta tes 0 . 01 6 .1 0. 1 (3 . 2) NM - - 13
M ix i, In c. 1 2/31 /200 8 21 21 TSE JPY J ap an 4 53, 000 70 0. 2 118 . 1 4 4. 9 38 . 0% 5. 0 x 1 3. 3 x NA
M ode rn T im es G r ou p Mt g A B 1 2/31 /200 8 MT G B OM S EK S w ed en 220 .00 1, 8 30. 3 1 , 66 2. 4 26 8. 2 16 . 1% 1. 4 x 8. 7x 2 , 96 9
M ogg le , Inc 1 2/31 /200 8 MM O G OT C BB USD U nited S ta tes 2 8 3. 5 NM (1 . 1) NM - - 3
M O K O .m obi L im ited 1 2/31 /200 8 MK B AS X AU D A u s tra lia 0 . 07 4 .7 1. 1 (2 . 2) NM 3. 5 x - NA
N E O W IZ G a m es C or po ra tion 1 2/31 /200 7 A 0 956 60 KOS E KR W S o uth K or ea 60, 100 45 6. 3 142 . 2 3 8. 2 26 . 9% 3. 1 x 1 1. 7 x NA
N etD r a go n W eb S oft , Inc . 1 2/31 /200 8 77 7 S E HK HKD C hina 5 . 23 35 6. 7 87. 3 3 9. 9 45 . 7% 2. 5 x 5. 5x 2 , 42 6
N ete a s e. c o m I nc . 1 2/31 /200 8 NTES N a s da qG S USD C hina 31 3, 7 85. 1 451 . 8 29 3. 8 65 . 0% - - NA
N eX p lo re C o rp ora tion 9 /30 /200 7 NXPC OT C PK USD U nited S ta tes 0 . 45 2 5. 1 NM (4 . 9) NM - - 19
N gi G r oup Inc . 1 2/31 /200 8 24 97 TSE JPY J ap an 36, 800 4 5. 8 99. 0 3 0. 5 30 . 8% - - NA
N or thg a te T e c hno lo gies L im ited 1 2/31 /200 8 59 005 7 BS E INR Ind ia 39 .80 2 8. 0 135 . 8 2 3. 9 17 . 6% 0. 2 x 1. 2x 286
O p en T e xt C o rp . 1 2/31 /200 8 OTEX N a s da qG S USD C a na da 33 1, 6 88. 3 769 . 3 19 5. 0 25 . 3% 2. 4 x 9. 3x 3 , 40 0
O p enw a v e S ys t em s Inc . 1 2/31 /200 8 OPW V N a s da qG S USD U nited S ta tes 1 . 26 10 5. 0 199 . 6 (1 0. 2) -5 . 1% 0. 1 x - 627
P e rf ec t W or ld C o., L td. 1 2/31 /200 8 PW R D N a s da qG S USD C hina 18 97 0. 2 210 . 5 11 3. 9 54 . 1% - - NA
P h oto C h a nn el N etw ork s Inc . 1 2/31 /200 8 T S XV : P N TS XV C AD C a na da 1 . 50 4 3. 5 16. 9 (0 . 8) -4 . 9% 2. 5 x - NA
Q u epa s a C or p. 1 2/31 /200 8 QPS A N a s da qC M USD U nited S ta tes 1 1 1. 4 0. 1 (1 1. 4) NM - - 74
O A O R B C Infor m a tion S y s tem s 1 2/31 /200 7 R BCI RTS USD R us s ia 0 . 99 13 6. 6 144 . 1 1 8. 8 13 . 1% 0. 0 x 0. 2x NA
S h a nd a In ter a c tiv e E nter ta in me nt L td. 1 2/31 /200 8 S NDA N a s da qG S USD C hina 52 3, 6 37. 7 522 . 8 24 0. 2 46 . 0% 0. 2 x 0. 5x NA
S h utte rf ly , In c . 1 2/31 /200 8 S F LY N a s da qG S USD U nited S ta tes 13 .12 33 0. 3 213 . 5 2 8. 4 13 . 3% 1. 1 x 8. 5x 514
S K C om mun ic a tions C o . , L td. 1 2/31 /200 7 A 0 662 70 KOS E KR W S o uth K or ea 9, 720 31 5. 2 163 . 5 1 5. 4 9 . 4% 1. 9 x 2 0. 5 x NA
S N A P Inte ra c tiv e , Inc . 1 2/31 /200 8 S T VI OT C BB USD U nited S ta tes 0 . 67 7 .2 3. 0 0 .9 31 . 4% 1. 9 x 6. 1x 11
S N M G loba l H old in gs 9 /30 /200 8 S N MN OT C PK USD U nited S ta tes 0 0 .0 2. 0 (0 . 7) -3 4.8% 1. 1 x - 33
S o c ia l Med ia V e nur es , In c . 1 2/31 /200 8 S MVI OT C PK USD U nited S ta tes 0 . 01 0 .0 0. 1 (0 . 1) -6 0.5% 0. 0 x - NA
S o hu. c om Inc . 1 2/31 /200 8 S OHU N a s da qG S USD C hina 58 2, 2 02. 1 429 . 1 18 0. 5 42 . 1% 4. 4 x 1 0. 5 x 3 , 19 7
S ite s ea r c h C or po ra t io n 1 /31 /200 9 S T PC OT C BB USD U nited S ta tes 3 . 50 2 8. 2 NM (1 . 1) NM - - 15
S p a r k N etw or k s , Inc . 1 2/31 /200 8 LO V AM E X USD U nited S ta tes 3 5 4. 5 57. 3 1 2. 3 NM 1. 0 x 4. 4x 183
S p ec tr um DN A , Inc . 1 2/31 /200 8 S P XA OT C BB USD U nited S ta tes 0 . 25 1 2. 2 0. 1 (2 . 5) 48 . 9% - - 7
T en c ent Ho ld in gs L td. 1 2/31 /200 8 70 0 S E HK HKD C hina 69 16,0 34. 1 1 , 04 8. 0 51 2. 6 -1 2.0% 16. 7 x 3 4. 1 x 6 , 19 4
T he P a r en t C om pa n y 8/2/2008 K ID S . Q OT C PK USD U nited S ta tes 0 . 01 0 .3 112 . 0 (1 3. 5) 33 . 7% 0. 2 x - 347
T he 9 L im ited 1 2/31 /200 8 N CT Y N a s da qG S USD C hina 10 25 9. 1 250 . 2 8 4. 3 9 . 7% - - NA
T he S tr eet . c om , Inc . 1 2/31 /200 8 TSCM N a s da qG M USD U nited S ta tes 2 . 14 6 5. 5 71. 9 7 .0 -5 0.6% - - 310
T ot a l S po rt O nline A S 3 /31 /200 6 TOSO O T C NO NO K N or wa y 0 0 .1 2. 1 (1 . 0) -1 0.4% 4. 6 x - 16
T r ee. C om , In c . 1 2/31 /200 8 TR EE N a s da qG M USD U nited S ta tes 9 . 48 9 4. 6 228 . 6 (2 3. 9) 0 . 4% 0. 4 x - 700
U nis er v e C om mu nic a tion s C o rp . 1 1/30 /200 8 T S X V : US S TS XV C AD C a na da 0 0 .8 25. 3 0 .1 23 . 0% 0. 1 x 2 9. 5 x NA
U nited O nline Inc . 1 2/31 /200 8 U NT D N a s da qG S USD U nited S ta tes 5 . 68 47 1. 6 669 . 4 15 3. 9 -7 8.2% 1. 2 x 5. 1x 1 , 46 9
U O MO Med ia , Inc 1 /31 /200 9 U O MO OT C BB USD C a na da 0 1 2. 0 0. 6 (0 . 5) 18 . 2% 19. 4 x - NA
V a lueC lic k Inc . 1 2/31 /200 8 V C LK N a s da qG S USD U nited S ta tes 11 .00 95 4. 3 625 . 8 11 3. 6 NM 1. 3 x 7. 3x 1 , 18 9
V O IS , In c. 1 2/31 /200 8 V O IS OT C BB USD U nited S ta tes 0 2 .7 0. 0 (1 . 3) -1 9.8% - - 4
W eb ze n In c . 1 2/31 /200 8 W ZE N N a s da qG M USD S o uth K or ea 2 . 87 3 4. 0 22. 5 (4 . 4) -9 8.2% - - NA
W iz za rd S of twa re C o rp ora tion 1 2/31 /200 8 W ZE AM E X USD U nited S ta tes 1 2 9. 2 6. 1 (6 . 0) NM 4. 8 x - 110
W or lds . c om In c. 9 /30 /200 8 W DD D OT C BB USD U nited S ta tes 0 . 17 8 .9 0. 1 NM NM - - 1
W y nds to rm C or por a tio n NA W YND OT C BB USD U nited S ta tes 0 0 .5 NA NM 32 . 0% - - NA
X IN G A G 1 2/31 /200 8 O 1B C XT R A EUR G er m a ny 29 .90 20 4. 4 46. 6 1 4. 9 22 . 4% 3. 2 x 9. 9x 174
Y e da n gO nline C o rp . 1 2/31 /200 7 A 0 527 70 KOS E KR W S o uth K or ea 8, 810 10 8. 7 54. 1 1 2. 1 -7 . 6% 2. 0 x 8. 9x NA
Y n k K or ea Inc . 1 2/31 /200 7 A 0 237 70 KOS E KR W S o uth K or ea 6 , 030 .00 1 1. 7 15. 4 (1 . 2) NM 0. 8 x - NA
Z ipL o c a l Inc . 1 2/31 /200 8 T S X V : ZIP TS XV C AD C a na da 0 0 .3 2. 8 (2 . 9) 0 . 0% 0. 6 x - NA
H igh 16,0 34. 1 1 , 662 . 4 51 2. 6 65 . 0% 39. 8 x 3 4. 1 x 6 , 194
Low 0 .0 0. 0 - 23. 9 -9 8.9% 0. 0 x 0. 2x 1
A vera ge 49 3.4 148 .0 33 .2 7 .4% 4 .7x 9 .7x 678
M edia n 4 7. 8 54. 4 1 .1 15 . 3% 1. 4 x 8. 5x 174
Figure 1. Web 2.0 Universe Summary
Source. Capital IQ

3. 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 )
April activity slow est month year-to-date: The month of April closed with 21 financings totalling $144.5 million. Seven of
the 21 deals were greater than or equal to $10 million and two deals were greater than $15 million. The month of March
registered 23 financings (total $159.5 million, average $6.5 million) compared to 25 financings announced in February,
totalling $185.5 million, or $7.4 million on average (Figure 2). The average value for February was above the $6.8 million
average for January, with four financings over $15 million in February (Twitter, Synthasite, Tremor Media, and Offerpal
Media) vs. no deals over $15 million in January.
Financing Activity Last Three Months
200.0 7.6
180.0 7.4
160.0 7.2
140.0 7.0
120.0 6.8
(US$m)
(US$m)
100.0 6.6
80.0 6.4
60.0 6.2
40.0 6.0
20.0 5.8
0.0 5.6
Feb-09 Mar-09 Apr-09
Total Average
Figure 2. Financings, Last Three Months
Source. Company reports
Collective Media largest deal in April: Collective Media topped the list in April with a $20 million raise, followed by Goom
Radio with $16 million. There were five deals greater than or equal to $10 million (Figure 3). For additional details, refer to
Figures 29 and 30 (at end of note).

4. (US$m)
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Twitter
Kaixin001.com
Collective Media
Source. Company reports
Synthasite
Tremor Media
GOOM Radio
Vidyo
Offerpal Media
12 deals. (Figure 4).
Imagini
Marin Software
The Rubicon Project
Buzznet
Emergent Game Technologies
Figure 3. Capital Market Activity, Last Three Months
FreeWheel
Outbrain
LendingClub
SendMe Inc.
Miva
Auditude
Conductor Inc.
Cellufun
Glam Media
Visible Measures
SuperSecret
Tvtrip
GoViral
ScanScout
Batanga
Tongxue
Oodle
Greystripe
Wamba
DoubleTwist
OMGPOP
IMShopping
Socialtext
TextDigger
OneSpot
Mixercast
Apture
FetchDog
Mixpo
Simulmedia
Virtual Fairground
Tynt
SoundCloud
AnySource Media
Pixazza
7 Billion People
TubeMogul
Financing Summary - Last Three Months
FamilyLink.com
Tribal Nova
WhistleBox
Sports Composite DE
Bit.ly
Tripbase
Hunch
Outright
Mendeley
Tvinci
Filtrbox
Socialcast
Brandtology
Scan & Target
AdultSpace
MMO Life
Cake Financial
Myngle
Jodange
33Across
fav.or.it
Three Melons
Foodista
Apr-09
Mar-09
Feb-09
Page 4
the Video sector with nine companies raising over $75.4 million, closely followed by Social Networks with $74.4 million on
Video and Social Networks continue to be the most active sectors: Activity over the last three months was busiest in

5. Page 5
Capital Market Activity by Sector - Last Three Months
80.0
70.0
60.0
50.0
(US$m)
40.0
75.4 74.4
30.0 57.4
54.9
41.4
20.0
37.0
22.5 20.6
10.0 17.4 15.0 14.3 12.0 12.0 11.0
6.5 5.5 4.7 4.1 4.1 3.9 3.1 2.6 2.0 2.0 1.3 1.3
0.0
Comment/Reputation
Social Commerce
Gaming
Visual Commerce
Wiki
Travel
Media
Microblog
Mobile
Publishing
Online Learning
Financial Services
Mobile Ad
Widget
Search
Lending
Infrastructure
Social Networks
Virtual Goods
SAS
Video
Aggregation
Virtual World
Crowdsourced
Ad Network
Analytics
Content
# companies
9 12 7 6 7 2 4 2 4 1 2 1 1 2 2 1 1 1 1 1 1 2 1 1 1 1
Figure 4. Capital Market Activity, by Sector, Last Three Months
Source. Company reports
Average round size decreases: On a trailing 12-month basis, total financing dollars fell as of April 2009, with average
round sizes decreasing slightly (Figure 5).

6. Page 6
LTM Financing
4,000.0 18.0
16.0
3,500.0
14.0
3,000.0
12.0
2,500.0
10.0
(US$m)
(US$m)
2,000.0
8.0
1,500.0
6.0
1,000.0
4.0
500.0
2.0
0.0 0.0
May-06
May-07
May-08
Nov-05
Mar-06
Nov-06
Mar-07
Nov-07
Mar-08
Nov-08
Mar-09
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 5. Financings, Last 12 Months
Source. Company reports
Cumulative total nears $6.2 billion: Overall, on a cumulative basis, W eb 2.0 financings have totalled nearly $6.2 billion,
with the majority of the financing coming in late 2007 and the first three quarters of 2008 (Figure 6). Financing for the first
quarter of 2009 passed that raised in the fourth quarter of 2008 – reversing the downtrend since the second quarter last
year. However, for the period ended Q1/CY09, total capital raised was below the Q1/CY08 level (at $748.2 million).

7. Page 7
Web 2.0 Financing (cumulative)
1,400.0 7,000.0
1,331.1
1,200.0 6,000.0
969.4
1,000.0 5,000.0
834.4
800.0 4,000.0
(US$m)
(US$m)
574.9 570.8 3,000.0
600.0
360.1
400.0 2,000.0
343.1
172.7171.8
200.0 1,000.0
144.5
126.4 135.6
93.0
88.3
61.5
47.5 33.5
22.2 41.9
38.8 20.1
0.0 0.0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1
2004 2005 2006 2007 2008 2009
Figure 6. Financing, Cumulative
Source. Company reports
U.S. remains dominant: U.S. companies continue to dominate capital market activity – with 67.9% of financings/M&A
involving U.S. companies (based on dollars) (Figure 7). Based on number of transactions, the U.S. leads with 73.1% of
deals, while Canada is third in number of financings at 4.5% (Figure 8).
Financing/M&A by Country - LTM ($) Financing/M&A by Country - LTM (#)
China Canada France
UK
15.7%
4.5% 3.4%
4.9%
Russia
Israel
3.8%
3.0%
UK
France
2.2%
2.2%
ROW
Israel
11.0%
1.8%
Denmark
1.5%
ROW
4.9%
USA
73.1%
USA
67.9%
Figures 7 & 8. Financing/M&A, by Country (LTM, $, #)
Source. Company reports
Larger volume of early-stage funding (by count): Almost half of financings in the last 12 months are for early-stage
companies (Angel/Seed or Series A) (Figure 9). Series B rounds are 28.7% of the total, with later-stage (Series D, E and
PIPE) deals accounting for just 8.8%.

8. Page 8
Financing by Type - LTM
Series C
15.1%
Series B
28.7%
Series D
4.7%
Angel/Seed
11.6%
Debt financing
Series A
2.7%
35.3%
PIPE
1.9%
Figure 9 Financing, by Type (LTM, #)
Source. Company reports
Equity financings smaller over last 12 months: In the last 12 months, the average size of Series A, B, C and D rounds
has all been lower than the overall average (Figure 10).
Average financing round size
40.0
36.1
35.0
30.6
29.7
30.0
26.7
25.0
21.6
(US$m)
20.0
18.3
15.0
11.6 11.6
10.8 10.8
10.0
7.9
7.0
5.8 5.4
5.0
3.3
2.6
0.0
Angel/Seed Debt financing PIPE Series A Series B Series C Series D Series E
LTM Average Size Overall Average
Figure 10. Average Size per Round
Source. Company reports

9. Page 9
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) underperformed the NASDAQ composite index from mid-
2008 until recently when it has moved sharply higher than the NASDAQ index (Figure 11).
Web 2.0 Index Price Performance
120
100
80
60
40
20
0
5/5/2008
5/19/2008
6/2/2008
6/16/2008
6/30/2008
7/14/2008
7/28/2008
8/11/2008
8/25/2008
9/8/2008
9/22/2008
10/6/2008
10/20/2008
11/3/2008
11/17/2008
12/1/2008
12/15/2008
12/29/2008
1/12/2009
1/26/2009
2/9/2009
2/23/2009
3/9/2009
3/23/2009
4/6/2009
4/20/2009
5/4/2009
^COMP - Share Pricing Index: Web 2.0 X (Market Cap)
Figure 11. Web 2.0 Price Performance
Source. Capital IQ
Tree.com leads; Beyond Commerce falls: Most of the companies in our universe had positive stock price performances
over the past week (for stocks with prices greater than $1) (Figure 12), with 19 companies showing positive returns on the
week. Tree.com (TREE-NASDAQ) led the group with a 62.3% return, while Beyond Commerce Inc. (BYOC-OTCBB) had
the worst return, dropping 10.7% in the week