The Compass Newsletter - Gridley & Company

The Compass 

Newsletter 

Volume 9, Number 2 2 nd Quarter 2011 July 21, 2011 

Dear Friends and Colleagues: 

It’s the “haves” and the “have nots”. That would be the Digital World and everyone else. In the Digital World, 

things are “hopping”, maybe even “jumping” or “leap frogging”. Companies are raising both private and public money 

at extraordinary values. There were 12 Internet Services IPOs this quarter including Yandex, LinkedIn, Pandora, 

and Bankrate amongst others. “Billion dollar internet babies” are being created virtually overnight as private 

investors are joining the party and putting big dollars into companies like Living Social and Gilt Groupe. Strategic 

buyers are returning to the M&A market. VC and PE guys are fiercely competing to put their dollars into the next 

Facebook, Zynga, and Groupon. And, we’re happy to report that New York has become a clear #2 to Silicon Valley 

for digital activity. That’s the good news. 

As for the rest of the world, well it’s pretty bleak out there with lots to worry about. There are ample signs of a 

significant slowdown in the domestic economy in recent months. When we’re not worrying about the U.S. economy 

and lack of jobs, we ponder over which European country will be the first to default on its debt and what new 

regulations the government might decide to put onto U.S. businesses. Despite all this, the market continued to hang 

in there. The Dow Jones rose a modest 0.8% in Q2 2011 while both the Nasdaq and S&P 500 dipped slightly-down 

0.3% and 0.4% respectively. 

Table of Contents 

Summary of Economic Statistics...................................................................... 2 

Performance of Key Market Indices ................................................................. 4 

Performance of Our Targeted Industry Sectors .................................................... 4 

Overall U.S. Equity Market Transaction Volume ...................................................12 

M&A Market Transaction Volume - Announced Deals with U.S. Targets ........................18 

Private Equity / Venture Capital Financing Transactions ..........................................27 

Outlook for the Market ..............................................................................43 

A Word about Gridley & Company LLC ..............................................................43 

Volume 9, Number 2 July 21, 2011 Page 1



Summary of Economic Statistics 

Interest Rates: 

Short Term: For Q2 2011, the Federal Reserve continued to maintain its low target rate of between 0.00% 

and 0.25%, a range that has remained unchanged since December 16, 2008. The actual rate fluctuated 

between 0.16% and 0.07%, steadily decreasing as the quarter progressed. The Federal Reserve has decided 

to keep the target at these historic lows since the economy has not recovered as quickly as it would have 

hoped for. The Fed is not expected to raise rates until the end of the year or early 2012. 

Long Term: The coupon rate on the Treasury ten-year notes started at 3.45% for the quarter and ended 

at 3.02%, gradually descending throughout the quarter. Fears of the economy potentially entering a 

slowdown are putting downward pressure on these rates. However, there still exist concerns regarding 

inflation offsetting this pressure. The spread between 2-year and 10-year Treasury notes began the 

quarter at 275 basis points and decreased very slightly to 273 basis points. With QE2 (the Fed’s second 

round of quantitative easing) ended, many analysts are worried about the potential of QE3. 

Oil Prices: The price of crude oil has decreased about 11% in Q2 2011, starting the quarter at $107.94 per barrel 

and ending at $95.42 per barrel. It hovered between $68 and $86 per barrel. Oil prices peaked in the first 

quarter with the political unrest in the Middle East and North Africa, and as these tensions died down in Q2, oil 

prices started to fall. This fall was intensified as the U.S. and 26 other western countries released 60 million 

barrels of oil from their reserves. 

Gold and Other Commodities: Gold hit a nominal record high at $1,556.70 on May 2. Since then it fell to $1502.30 

at the end of the quarter. Despite this recent drop, gold still registered a 4.4% gain for the quarter. Silver also 

peaked in May but has fallen drastically since then, ending the quarter down 8%. Other commodities such as wheat 

and corn have stayed flat or declined slightly. Although there was a general trend downwards, most commodities 

are still higher than they were in Q2 2010. 

U.S. Dollar: The U.S. dollar weakened 1.5% against the Euro and 2.3% against the Yen, while strengthening 0.4% 

against the British Pound. The depreciation in the dollar was caused in part by the growing belief of a future 

economic slowdown. Near the end of the quarter, concern about the US recovery was outweighed by renewed 

concerns about Europe and the dollar appeared to be in a rising trend against the Euro again. Many investors are 

worried about the situation in Greece and also significant issues in Italy, Spain, Portugal and Ireland. Most believe 

the IMF and EU are simply trying to delay the inevitable default for as long as they can, giving struggling countries 

and banks more time to recover before they have to deal with the fallout. The Yen is appreciating as most 

investors believe the Japanese economy will recover from high oil prices and their natural disaster. 

Inflation: The Consumer Price Index increased 0.4% in Q2 2011. CPI decreased 0.2% in June, however this 

decrease resulted mainly from falling gasoline prices. The index for all items less food and energy increased 0.3%. 

Over the last 12 months, CPI increased 3.6% before seasonal adjustment. Deflationary fears seem to be a distant 

past and the current concern is the effect of inflation on the Fed and the consumer. Inflation constrains future 

monetary stimulus from the Fed and the CPI increase hits consumer wallets in the short term. However, Bernanke 

indicated in recent remarks that the inflation increase was related to transitory factors and should trend 




downward. He also stated that the Fed is ready for another round of easing if the economy weakens and inflation 

decreases. 

Housing and Commercial Real Estate: The trend of underperformance in the housing market that started in late 

2010 has continued into April 2011, an unfortunate reversal of the strides made last year. According to the S&P 

Case-Shiller Home price Index (composite of home prices in 20 cities), Washington, D.C. was the only city to show 

positive year-over-year growth in April. 13 markets did rise since March, but 16 markets saw their annual rates of 

change become more negative. Unfortunately, there appears to be no end in sight for these dismal price levels, 

which have been steadily declining for the past nine months. 

Consumer Confidence: At the end of June, the Conference Board Consumer Confidence Index measured 58.5, the 

lowest it has been since December. Confidence decreased in both May and June as consumers grew more uneasy 

about both the economic outlook and their own future earnings. Consumer opinion of present conditions worsened, 

and fewer consumers foresee economic conditions improving in the next six months. Those who reported jobs are 

“hard to get” increased to 43.8% from 43.5%. 

Unemployment: The unemployment rate rose during Q2 2011, reversing Q1 improvements. According to statistics 

published by the Bureau of Labor Statistics, the unemployment rate increased 0.4% since the end of March, 

finishing June at a rate of 9.2%. Overall, only 18,000 jobs were added. Gains were reported in professional and 

technical services, health care employment, mining, and leisure and hospitality. These gains outweighed decreases 

in government and manufacturing employment. However, long-term unemployment and involuntary part-time 

unemployment remained essentially unchanged. This means that 14.1 million Americans are still searching for jobs, 

indicating that economic recovery has not sparked new hiring and unemployment is still a big issue for the U.S. 

economy. 




Performance of Key Market Indices 

The hallmark of the second quarter was volatility. The markets rose in the beginning of the quarter, but fell with 

the release of weak data on unemployment, home prices, and manufacturing. Lingering concerns about the effects 

of the earthquake in Japan also pushed down the markets. Investors tried to determine whether the economy was 

experiencing a small “soft patch” or headed for a double-dip recession, and many left the stock market for the 

relative safety of bonds. The S&P 500 dipped 0.4% and ended the quarter at 1,321, and the Nasdaq fell 0.3%, 

ending the quarter at 2,774. The Dow rose 0.8%, to 12,414. The market outlook remains uncertain as the European 

debt crisis, domestic political battles over the debt ceiling, and poor employment numbers continue to hang over 

investors. 

Stock Price Performance of Key Market Indices 

Q2 

2008 2009 2010 2011 

S&P 500 (3.2%) 15.2% (11.9%) (0.4%) 

Dow Jones (7.4%) 11.0% (10.0%) 0.8% 

Nasdaq 0.6% 20.0% (12.0%) (0.3%) 

Source: CapIQ 

Performance of Our Targeted Industry Sectors 

Our target industry sectors did not post large stock price gains in Q2. After increases in Q1, Marketing Services, 

Internet Services, and Financial Technology saw Q2 losses of 3.5%, 7.8%, and 1.1%, respectively. Only Data 

Services and SaaS and Outsourcing Services had increased, albeit minimally. On the bright side, this year’s Q2 

corrections seem to be less severe than those of previous years. 

Median Stock Price Performance of Targeted Industry Sectors 

Q2 

2008 2009 2010 2011 

Marketing Services (8.5%) (1.7%) (11.2%) (3.5%) 

Internet Services (21.5%) 0.4% (11.3%) (7.8%) 

Financial Technology (13.4%) (1.8%) (11.4%) (1.1%) 

Data Services (7.9%) (5.8%) (8.7%) 2.4% 

SaaS and Outsourcing Services (15.5%) (1.3%) (3.2%) 1.2% 

Source: CapIQ 




There were more “losers” (stock price decline of more than 20.0%) than “winners” (stock price appreciation of 

more than 20.0%) in our targeted industry sectors in Q2 2011. There were 32 losers versus 23 winners for the 

quarter. Of the 229 stocks that we follow, 41.0% saw their stock prices increase, while 59.0% saw decreases. SaaS 

and Outsourcing Services led the price increases, with 51.2% of the SaaS companies we follow showing positive 

price movement. Marketing Services and Internet Services had the most stocks price declines. 66.7% and 64.5% 

of the stocks in those sectors declined in the quarter, respectively. 

2011 Stock Price Performance of Public Companies in Targeted Sectors 

Number of 

Public % of Stocks Number of 

Sector Companies Increased Decreased Winners Losers 

Marketing Services 30 33.3% 66.7% 0 8 

Internet Services 93 35.5% 64.5% 11 18 

Financial Technology 50 44.0% 56.0% 3 3 

Data Services 15 53.3% 46.7% 2 0 

SaaS & Outsourcing Services 41 51.2% 48.8% 7 3 

Total 229 41.0% 59.0% 23 32 

Source: CapIQ 




“Winners” and “Losers” in Our Targeted Industry Sectors for Q2 2011 

Marketing Services 

China Century Dragon Media, which essentially resells ad time on China’s national television network for over 

1000 customers, took a beating this past quarter. China Century Dragon Media went public in February for $5.25 

per share. The company is having financial accounting woes. Their auditor canceled their engagement with the 

company, the SEC started a fraud investigation, and they were delisted from the NYSE only six weeks after their 

IPO. By the end of the quarter, the stock was trading around 30 cents on the Pink Sheets, a 94% decrease since 

their IPO. It seems like maybe their underwriters should have done a bit more due diligence before the IPO. 

Internet Services 

LinkedIn Corporation was the biggest winner this past quarter, following a successful IPO and a 100.2% stock 

increase by the end of the quarter. LinkedIn generated $243.1 million in revenue last year and is currently trading 

at nearly 39x trailing sales. The company is continually rolling out new features for its professional social network, 

helping it grow into its valuation and feeding investors’ fervor for the stock. HealthStream started the quarter at 

$7.72 per share and ended with a gain of over 71.7% mainly from a favorable earnings release in April and the 

stock has steadily climbed to its current price. MediaMind Technologies Inc. rose 58.9% in the second quarter, 

boosted by a positive first quarter earnings report and the announcement of an acquisition by DG FastChannel 

Inc., a provider of an end-to-end digital advertising delivery network, for $22.00 per share. This represented a 

38% premium over the closing price prior to announcement. 

In addition to LinkedIn, Responsys, HomeAway, and Yandex, all had extremely successful IPOs this quarter. 

Responsys was up 47.8% for the quarter, benefiting from investor demand for a successful online marketing 

company with a promising long-term business plan and ability to expand its customer base (which includes the NBA, 

Whole Foods, and Orbitz). HomeAway, the world’s largest online vacation rental site, was up 43.3% as investors 

speculate that the demand for online vacation rentals and travel booking services will be strong. Yandex, the 

Russian internet search leader, was up 42.0% following buy recommendations from five analysts. 

FriendFinder Networks ended up in our “losers” category, falling 59.4% in the quarter after their IPO in May. The 

newly public company had a rough first quarter following an investigation around the disclosures made to investors 

related to the company’s risks during their IPO. QuinStreet Inc. took a beating this past quarter, falling 42.9%. 

In June, the company released 2012 revenue forecasts well below analyst expectations. This shortfall is primarily 

due to a weaker demand from education clients, which constituted 42 percent of the previous year’s revenue, and 

an expected flat growth rate in the next two quarters. Many for-profit education institutions that use Quinstreet 

have been impacted by the Department of Education's regulation on gainful employment that determines whether 

for-profit colleges qualify for federal student aid. 

Youku, which went public on December 9, 2010, hit a peak at $64.35 in April but has since fallen to $27.80, a 

27.7% decrease for the quarter. In general, Chinese internet stocks have fallen out of favor with investors due to 

the Chinese government’s efforts to rein in the explosive and unsustainable growth. Investors also might be 

concerned about Youku’s lack of profits, a similar situation YouTube experienced for much of its life. 




Alterian plc stock plummeted more than 30% this past April after announcing significantly lower profits for the 

upcoming year and the resignation of Chief Executive David Eldridge. The stock continued to fall following the 

later news of increasing costs and a board restructuring. This one time favourite partner for database marketing 

companies finished the quarter down 46.0% to a market value of $99.5 million. 

Data Services 

Intersections, a leading provider of identity theft risk management services, was a winner this quarter; its stock 

rose 46.8%. Intersections’ share price appreciation can be attributed to its announcement of a regular quarterly 

cash dividend on its common stock of $0.15 per share and strong Q1 growth in revenue and net income. The market 

for Intersections’ services has grown as consumers and corporations expand their reliance on digital technology 

and the risk of identify theft increases. The other winner was real estate marketplace and data company LoopNet, 

which announced an acquisition by competitor CoStar Group and ended the quarter up 29.9%. 

Financial Technology 

Jackson Hewitt Tax Services, the second largest tax preparation service in the US, was the biggest loser in Q2, 

with its stock price falling 94.2%. They have been struggling for the past two years with regulators and customers 

for their “refund-anticipated loan” practices. On May 7th, the company’s stock moved from the NYSE to the Pink 

Sheets, and thirteen days later, the company filed for Chapter 11 bankruptcy. 

SaaS and Outsourcing Services 

ServiceSource Corporation was a winner this past quarter after announcing a large increase in quarterly earnings. 

ServiceSource makes software that allows businesses to manage customer relations and outsource sales staff to 

increase contract renewals at its customers – a largely unpenetrated market. This newly public stock has 

performed extremely well since its IPO in March and has been one of the hottest stocks in the outsourcing 

services sector, ending the quarter up 82.4%. Congrats to CEO Mike Smerklo and his team. Mike was a presenter at 

the Gridley conference in 2005 and 2006. Linda first reconnected with this fellow Lehman alumn shortly after 

Mike and a partner acquired the ServiceSource business at a very early stage in 2003. Well done Mike! 

The charts on the following pages illustrate each sector’s stock price “winners” and “losers” for the second quarter 

of 2011. Please visit our website, www.gridleyco.com, for a full listing of the public companies in our targeted 

industry sectors. 




Stock Price Winners & Losers in Gridley's Targeted Sectors 

Q2 2011 

Market Cap Stock Price Q2 Stock Price 

($ in millions, except per share amounts) 06/30/11 06/30/11 Change 


Winners (0) 

Losers (8) 

China Century Dragon Media, Inc. $2.6 $0.30 (93.8%) 

China Mass Media Corp. 33.7 1.32 (43.6%) 

AirMedia Group Inc. 211.1 3.20 (38.6%) 

VisionChina Media Inc. 289.4 2.83 (34.6%) 

Harte-Hanks Inc. 517.9 8.12 (31.8%) 

StarTek, Inc. 52.3 3.45 (31.5%) 

Lamar Advertising Co. 2,540.8 27.37 (25.9%) 

Rainmaker Systems Inc. 21.4 1.02 (21.2%) 





Q2 2011 




Winners (11) 

LinkedIn Corporation $8,513.4 $90.09 100.2% 

Healthstream Inc. 291.1 13.27 71.7% 

MediaMind Technologies Inc. 425.6 21.94 58.9% 

Responsys, Inc. 831.9 17.73 47.8% 

HomeAway, Inc. 3,089.4 38.70 43.3% 

Yandex N.V. 11,407.5 35.51 42.0% 

Changyou.com Limited 2,304.2 44.03 37.0% 

Expedia Inc. 7,924.7 28.99 27.9% 

IAC/InterActiveCorp. 3,436.6 38.17 23.5% 

Rediff.com India Ltd. 250.5 9.21 22.8% 

Glu Mobile, Inc. 284.1 5.27 22.0% 

Losers (18) 

FriendFinder Networks Inc. $113.5 $4.06 (59.4%) 

Motricity, Inc. 358.6 7.73 (48.6%) 

Alterian plc 99.5 1.01 (46.0%) 

E-Commerce China Dangdang Inc. 907.2 11.59 (43.8%) 

QuinStreet, Inc. 609.2 12.98 (42.9%) 

Demand Media, Inc. 1,127.4 13.55 (42.5%) 

Sky-mobi Limited 234.9 7.30 (40.7%) 

Renren Inc. 3,468.6 8.85 (36.8%) 

Vertro, Inc. 16.0 2.25 (36.1%) 

EDGAR Online Inc. 26.7 0.86 (34.4%) 

DemandTec, Inc. 296.2 9.10 (30.9%) 

Orbitz Worldwide, Inc. 255.4 2.49 (30.3%) 

Vringo, Inc. 6.9 1.22 (28.0%) 





Q2 2011 



Internet Services (cont'd) 

Losers (18) 

Youku.com Inc $3,907.8 $34.35 (27.7%) 

Constant Contact, Inc. 747.8 25.38 (27.3%) 

Inuvo, Inc. 21.1 2.10 (26.8%) 

OpenTable, Inc. 1,957.0 83.12 (21.8%) 

zipRealty Inc. 47.1 2.30 (20.7%) 


Q2 2011 




Winners (3) 

Crawford & Company $319.4 $7.07 48.5% 

Higher One Inc. 1,067.8 18.92 30.9% 

Digimarc Corporation 234.4 35.03 21.2% 

Losers (3) 

Jackson Hewitt Tax Service Inc. $1.0 $0.04 (94.2%) 

Green Dot Corporation 1,428.2 33.98 (20.8%) 

Euronet Worldwide Inc. 789.1 15.41 (20.3%) 





Q2 2011 



Data Services 

Winners (2) 

Intersections Inc. $298.2 $18.20 46.8% 

LoopNet, Inc. 735.4 18.38 29.9% 

Losers (0) 


Q2 2011 




Winners (6) 

ServiceSource Corporation $1,500.4 $22.22 82.4% 

Echo Global Logistics, Inc. 392.8 17.75 35.2% 

The Hackett Group, Inc. 208.0 5.09 32.6% 

Sapient Corp. 2,073.1 15.03 31.3% 

Team Health Holdings, Inc. 1,460.1 22.51 28.8% 

Satyam Computer Services Ltd. 2,205.9 83.80 27.5% 

Losers (3) 

Patni Computer Systems Limited $970.9 $323.85 (32.1%) 

SuccessFactors, Inc. 2,323.2 29.40 (24.8%) 

Computer Sciences Corporation 5,882.1 37.96 (22.1%) 




Q2 2011 U.S. Equity Market Transaction Volume 

The IPO market has definitely opened up compared to last year. Q2 2011 had 56 IPOs that raised an aggregate of 

$14.3 billion, compared to 46 that raised $7.1 billion in Q2 2010. Similar to Q1 this year, technology IPOs led the 

way, representing 20 of the 56 offerings. The largest U.S. IPO in the quarter was Russian search engine Yandex 

(NASDAQ: YNDX), raising more than $1.4 billion. 

The number of follow-on offerings decreased in Q2 2011 to 74 from 145 in Q2 2011. The largest secondary 

offering by far was one by The Mosaic Company (NYSE: MOS) at $6.5 billion, after which Mosiac completed its 

split-off from Cargill. Finally, equity-linked offerings increased from 35 in Q2 2010 to 39 in Q2 2011, with volume 

growing from $4.8 billion to $8.0 billion. Hopefully, the choppiness of the stock markets and global macroeconomic 

woes will subside so that the revival of equity fundraising will charge forward unhindered. 

fa 

U.S. Equity Market Transaction Volume 

Q2 2010 vs. Q2 2011 

($ in millions) Deals $ Deals $ Deals $ % Amt. 

Gridley & Company Universe 

Q2 2010 Q2 2011 Change 

IPO 8 $530.9 12 $4,197.2 4 $3,666.3 690.6% 

Follow-On Offerings 2 145.0 3 427.6 1 282.6 194.9% 

Equity Linked Offerings 0 0.0 0 0.0 0 0.0 NM 

Total 10 $675.9 15 $4,624.8 5 $3,948.9 584.3% 

Overall US Equity Transactions 

IPO 46 $7,089.1 56 $14,343.2 10 $7,254.1 102.3% 

Follow-On Offerings 145 27,365.6 74 13,931.8 (71) (13,433.8) (49.1%) 

Equity Linked Offerings 35 4,794.1 39 8,003.8 4 3,209.6 66.9% 

Total 226 $39,248.9 169 $36,278.7 (57) ($2,970) (7.6%) 

Source: CapIQ; includes offerings on major U.S. exchanges only 




Q2 2011 U.S. Equity Market Transaction Volume in Our Sectors 

Our targeted industry sectors raised $4.6 billion from 15 equity offerings in Q2 2011, compared to $675.9 million 

from 10 offerings in Q2 2010. As we predicted at the start of the year, Internet companies led the IPO charge in 

our sectors, with a whopping 12 of them going public in Q2: Zipcar, Responsys, Renren, Friendfinder, Phoenix New 

Media, Jiayuan, LinkedIn, Yandex, The Active Network, Pandora, Bankrate, and HomeAway. The gates have been 

blown wide open for internet companies as investors look for winning growth plays in an otherwise dreary and 

volatile market. In addition, Groupon, CafePress, and Zillow all filed IPOs this past quarter, Zynga just filed in the 

beginning of Q3, and there are rumors of “soon to be filed” IPOs from BazaarVoice, Criteo, Facebook, LivingSocial, 

and Vibrant Media. 

There were also three follow-on offerings that raised $427.6 million from Ancestry.com, CoStar Group, and SPS 

Commerce. 

U.S. Equity Market Transaction Volume in Gridley Sectors 

Q2 2010 vs. Q2 2011 

Q2 2010 Q2 2011 Change 

($ in millions) Deals $ Deals $ Deals $ % Amt. 


IPO 1 $74.2 0 $0.0 (1) ($74.2) (100.0%) 

Follow-On Offerings 1 100.0 0 0.0 (1) (100.0) (100.0%) 


Total 2 $174.2 0 $0.0 (2) ($174.2) (100.0%) 


IPO 3 $133.3 12 $4,197.2 9 $4,063.9 3,048.9% 

Follow-On Offerings 0 0.0 1 182.7 1 182.7 NM 


Total 3 $133.3 13 $4,379.9 10 $4,246.6 3,186.0% 


IPO 1 $108.0 0 $0.0 (1) ($108.0) (100.0%) 



Total 1 $108.0 0 $0.0 (1) ($108.0) (100.0%) 

Data Services 

IPO 0 $0.0 0 $0.0 0 $0.0 NM 



Total 0 $0.0 1 $225.0 1 $225.0 NM 


IPO 3 $215.4 0 $0.0 (3) ($215.4) (100.0%) 

Follow-On Offerings 1 45.0 1 19.9 0 (25.1) (55.8%) 


Total 4 $260.4 1 $19.9 (3) ($240.5) (92.4%) 

Total All Sectors 10 $675.9 15 $4,624.8 5 $3,948.9 584.3% 

Source: CapIQ 




($ in millions, except per share figures) 

Completed IPOS in Gridley Targeted Sectors 

Q1 & Q2 2011 

Pricing Offering IPO 06/30/11 06/30/11 

Company Date Size Stock Price Stock Price Market Cap % Change 


China Century Dragon Media, Inc. 02/07/11 $6.3 $5.25 $0.30 $2.6 (94.3%) 


HomeAway, Inc. 06/28/11 $248.4 $27.00 $38.70 $3,089.4 43.3% 

Bankrate, Inc. 06/16/11 336.8 15.00 16.58 1,658.0 10.5% 

Pandora Media, Inc. 06/14/11 234.9 16.00 18.91 3,020.5 18.2% 

The Active Network, Inc. 05/25/11 165.0 15.00 17.60 932.5 17.3% 

Yandex N.V. 05/24/11 1,434.8 25.00 35.51 11,407.5 42.0% 

LinkedIn Corporation 05/18/11 352.8 45.00 90.09 8,513.4 100.2% 

Phoenix New Media Ltd. 05/11/11 161.5 11.00 8.97 677.8 (18.5%) 

Jiayuan.com International Ltd. 05/11/11 78.1 11.00 11.43 357.3 3.9% 

FriendFinder Networks Inc. 05/10/11 50.0 10.00 4.06 113.5 (59.4%) 

Renren Inc. 05/04/11 854.9 14.00 8.85 3,468.6 (36.8%) 

Responsys, Inc. 04/20/11 79.4 12.00 17.73 831.9 47.8% 

Zipcar, Inc. 04/13/11 200.5 18.00 20.41 794.9 13.4% 

Demand Media, Inc. 01/25/11 174.0 17.00 13.55 1,127.4 (20.3%) 


None 

Data Services 

Nielsen Holdings N.V. 01/26/11 $1,889.3 $23.00 $31.16 $11,160.6 35.5% 


ServiceSource Corporation 03/24/11 $137.3 $10.00 $22.22 $1,500.4 122.2% 

Cornerstone OnDemand, Inc. 03/16/11 136.5 13.00 17.65 839.0 35.8% 

MedQuist Holdings Inc. 02/04/11 41.4 8.00 12.92 635.3 61.5% 

Source: Public Filings and CapIQ 




Select Q2 2011 Marketing Services Completed Offerings, Filings, and Withdrawals 

The Marketing Services sector was quiet this quarter. There were no offerings or filings, compared with one 

priced IPO, one follow-on offering, and one IPO filing from Q2 2010. 

Select Q2 2011 Internet Services Completed Offerings, Filings, and Withdrawals 

Internet Services was by far the most active sector within our targeted industries. This quarter the sector saw a 

huge increase both in terms of number and size of offerings. There were 12 IPOs, one of which raised $1.4 billion, 

and also one $182.7 million follow-on offering. In Q2 2010 there were only three IPOs, the largest of which raised 

$60.0 million. The second quarter showed a lot of promise within Internet Services and we are optimistic for Q3. 

Groupon, CafePress, and Zillow have all filed for IPOs. 

A special congrats goes to Tom Evans, the CEO of Bankrate, on his successful (and rather quick!) return to the 

public market. Tom took Bankrate private with Apax Partners in July 2009 at a value of $571 million. Since that 

time, Tom and his team completed three acquisitions, including two significant ones: insurance lead generation 

provider NetQuotes ($205 million price) and financial services lead generation provider Creditcards.com ($145 

million price). As a result, revenue grew at a CAGR of 50.8% from the time of the LBO (July 2009) to June 2011. 

The company re-debuted in the public market with a market value of $1.5 billion on June 16th and it ended the 

quarter up 10.5% to enjoy a $1.66 billion valuation. No wonder people consider Tom Evans to be one of the best 

operators out there. 

• Zipcar (NASDAQ: ZIP), provider of a car sharing network, priced its $200.5 million IPO on April 13th. 3.0 

million of the 9.7 million shares offered were secondary. A greenshoe of 1.5 million shares was exercised. 

The offering priced at $18.00 and the stock finished the quarter up 13.4% over the offering price to 

$20.41. 

• Responsys (NASDAQ: MKTG), provider of software and professional marketing services, priced its $79.4 

million IPO on April 20th. 1.1 million of the 6.6 million shares offered were secondary. No greenshoe was 

exercised. The offering priced at $12.00 and the stock finished the quarter up 47.8% over the offering 

price to $17.73. 

• Renren (NYSE: RENN), a provider of a social networking platform in China, priced its $854.9 million IPO on 

May 4th. 10.2 million of the 53.1 million shares offered were secondary. A greenshoe of 8.0 million shares 

was exercised. The offering priced at $14.00 and the stock finished the quarter down 36.8% below the 

offering price to $8.85. 

• Friendfinder (NASDAQ: FFN), a provider of social networking and web-based video sharing services, 

priced its $50.0 million IPO on May 10th. None of the 5.0 million shares offered were secondary. No 

greenshoe was exercised. The offering priced at $10.00 and the stock finished the quarter down 59.4% 

below the offering price to $4.06. 

• Phoenix New Media (NYSE: FENG), a provider of Internet, TV, and mobile content on an integrated 

platform, priced its $161.5 million IPO on May 11th. 1.3 million of the 12.8 million shares offered were 




secondary. A greenshoe of 1.9 million shares was exercised. The offering priced at $11.00 and the stock 

finished the quarter down 18.5% below the offering price to $8.97. 

• Jiayuan (NASDAQ: DATE), a provider of an online dating platform in China, priced its $78.1 million IPO on 

May 11th. 0.4 million of the 7.1 million shares offered were secondary. No greenshoe was exercised. The 

offering priced at $11.00 and the stock finished the quarter up 3.9% over the offering price to $11.43. 

• LinkedIn (NYSE: LNKD), an operator of an online professional network, priced its $352.8 million IPO on 

May 18th. 3.0 million of the 7.8 million shares offered were secondary. No greenshoe was exercised. The 

offering priced at $45.00 and the stock finished the quarter up 100.2% over the offering price to $90.09. 

• Yandex (NASDAQ: YNDX), a provider of an internet search engine in Russia, priced its $1.4 billion IPO on 

May 24th. 36.8 million of the 52.2 million shares offered were secondary. A greenshoe of 5.2 million shares 

was exercised. The offering priced at $25.00 and the stock finished the quarter up 42.0% over the 

offering price to $35.51. 

• The Active Network (NYSE: ACTV), a provider of online event management and marketing solutions, priced 

its $165.0 million IPO on May 25th. 2.8 million of the 11.0 million shares offered were secondary. No 

greenshoe was exercised. The offering priced at $15.00 and the stock finished the quarter up 17.3% over 

the offering price to $17.60. 

• Pandora (NYSE: P), a provider of an internet radio station, priced its $234.9 million IPO on June 14th. 8.7 

million of the 14.7 million shares offered were secondary. No greenshoe was exercised. The offering priced 

at $16.00 and the stock finished the quarter up 18.2% over the offering price to $18.91. 

• Bankrate (NYSE: RATE), a provider of online financial data feed management services, priced its $336.8 

million IPO on June 16th. 7.5 million of the 20.0 million shares offered were secondary. A greenshoe of 2.5 

million shares was exercised. The offering priced at $15.00 and the stock finished the quarter up 10.5% 

over the offering price to $16.58. 

• HomeAway (NASDAQ: AWAY), a provider of an online marketplace for vacation rentals, priced its $248.4 

million IPO on June 28th. 2.1 million of the 8.0 million shares offered were secondary. A greenshoe of 1.2 

million shares was exercised. The offering priced at $27.00 and the stock finished the quarter up 43.3% 

over the offering price to $38.70. 

• Ancestry.com (NASDAQ: ACOM), an online resource for family history, priced a $182.7 million follow-on 

offering on May 10th. All of the 4.4 million shares offered were secondary. No greenshoe was exercised. 

The offering priced at $42.00, a 3.5% discount to the previous close, and the stock finished the quarter 

down 1.5% below the offering price to $41.39. 

• Groupon, a group deals marketplace, filed its IPO on June 2nd. The company plans to raise up to $750.0 

million. 




• CafePress, an e-commerce platform for creating, buying, and selling personalized products, filed its IPO on 

June 10th. The company plans to raise up to $80.0 million. 

• Zillow, an online real estate information marketplace, filed its IPO on April 18th. The company plans to 

raise up to $48.47 million. 

Select Q2 2011 Financial Technology Completed Offerings, Filings, and Withdrawals 

The Financial Technology sector had three IPO filings in Q2 2011, compared to one priced IPO and two filings in 

Q2 2010. 

• WageWorks, an on-demand provider of tax-advantaged programs for consumer directed benefits, filed its 

IPO on April 25th. The company plans to raise up to $75.0 million. We are big fans of WageWorks. They 

are a five-time presenter at our January conference, having presented every year from 2006 to 2010. 

• BancTec, a provider of hardware and software systems for the financial transaction marketplace, filed its 

IPO on May 13th. The company plans to raise up to $75.0 million. 

• Currency Exchange International Corp., a provider of retail and wholesale foreign exchange services, filed 

its IPO on June 30th. The company plans to raise up to $6.84 million. 

Select Q2 2011 Data Services Completed Offerings, Filings, and Withdrawals 

The data services sector had one follow-on offering in Q2 2011. There were two filings in this sector in Q2 2010. 

• CoStar Group (NASDAQ: CSGP), a provider of information to the commercial real estate industry, priced a 

$225.0 million follow-on offering on May 25th. None of the 3.8 million shares offered were secondary. No 

greenshoe was exercised. The offering priced at $60.00, a 5.7% discount to the previous close, and the 

stock finished the quarter down 1.2% below the offering price to $59.28. 

Select Q2 2011 SaaS & Outsourcing Services Completed Offerings, Filings, and Withdrawals 

SaaS & Outsourcing Services experienced a decline in activity this quarter compared to 2010. There was one 

follow-on offering and one IPO filing this quarter, compared to three completed IPOs, one filed IPO, and one 

follow-on offering in Q2 2010. 

• SPS Commerce (NASDAQ: SPSC), a provider of on-demand supply chain management solutions, priced a 

$19.9 million follow-on offering on July 9th. All of the 1.2 million shares offered were secondary. No 

greenshoe was exercised. The offering priced at $16.50, a 10.0% discount to the previous close, and the 

stock finished the quarter up 7.8% over the offering price to $17.79. 

• Carbonite, a provider of online data backup solutions, filed its IPO on May 11th. The company plans to raise 

up to $100.0 million. 




Q2 2011 M&A Market Transaction Volume - Announced Deals with U.S. Targets 

The M&A market was strong in Q2 2011. Deal volume reached $260.0 billion in the U.S., up 30.1% from Q2 of last 

year (though 12.1% lower than deal volume in Q1 2011). Although deal volume still has not matched 2008 (and may 

not for the foreseeable future), strategic acquirers are slowly building up courage and opening up their “bloated” 

cash coffers. Though many industry leaders still need to come back from the sidelines, we are hearing plenty of 

M&A chatter in back channels. If the global economy and/or U.S. economy don’t collapse, and if the U.S. 

government doesn’t scare companies via regulatory threats and actions, then we would expect this M&A momentum 

to continue. Of course, we recognize that, at this point, those are BIG “ifs”. 

The top five announced deals by enterprise value include: 

• Johnson & Johnson’s purchase of Synthes ($19.54BN) 

• Exelon Corporation’s purchase of Constellation Energy Group, Inc. ($11.54BN) 

• Energy Transfer Equity, L.P.’s purchase of Southern Union Co. ($8.74BN) 

• Texas Instruments Inc.’s purchase of National Semiconductor Corporation ($7.03BN) 

• Teva Pharmaceuticals USA, Inc.’s purchase of Cephalon Inc. ($6.37BN) 

U.S. M&A Transaction Volume 

Announced Deals with U.S. Targets 

($ in billions) Q2 

2008 2009 2010 2011 

Number of Deals 2,623 2,155 2,829 3,699 

Percent Change from 2010 - - - 30.8% 

Percent Change from 2009 - - 31.3% 71.6% 

Percent Change from 2008 - (17.8%) 7.9% 41.0% 

Total $ Volume $316.4 $123.2 $199.8 $260.0 

Percent Change from 2010 - - - 30.1% 

Percent Change from 2009 - - 62.2% 111.0% 

Percent Change from 2008 - (61.1%) (36.8%) (17.8%) 

Source: CapIQ 

Q2 2011 M&A Deals in Our Targeted Industry Sectors 

Deal activity in our sectors was robust. As both investor sentiment and industry fundamentals improved towards 

the end of last year, companies have started to invest in growth and increased market share opportunities. 




Select Q2 2011 Marketing Services M&A Deals 

On April 25th, Alliance Data announced the acquisition Aspen Marketing Services for $345 million, representing 

1.43x and 8.6x 2011E revenue and EBTIDA multiples, respectively. Under the terms of the deal, Aspen will be 

merged with the agency business of Epsilon Data Management, a subsidiary of Alliance that provides data and 

marketing services. They will operate as an independent entity under the Aspen name. While the EBITDA multiple 

for this deal is a bit on the high end for a direct marketing business these days, Aspen is likely the largest 

independent company in the business with a solid sales-oriented industry veteran as CEO that has a strong 

presence in the automotive vertical. While we prefer to see the traditional database marketing guys like Alliance 

Data make more moves into the digital world, this deal is a logical one for Alliance Data, albeit at a seemingly high 

price. 

On May 17th, Publicis Groupe announced the acquisition of the independent digital ad agency Rosetta Marketing 

Strategies Group for $575 million in cash, representing 2.67x LTM revenue. Rosetta’s shareholders will also 

receive deferred payments in 2014 based upon the agency’s financial performance during the 2011-2013 period. 

Rosetta will operate as an independent entity within the Paris-based Publicis brand under the retained leadership 

of its CEO and founder Chris Kuenne. The acquisition of Rosetta continues the traditional advertising provider’s 

decade long strategy to obtain leading digital agencies which has included Digitas and Razorfish. After this 

acquisition, 30% of Publicis’ revenues will be based on digital marketing and advertising services, which is a key 

element of the company’s growth strategy. For the money, this price seemed a bit rich for the asset and we think 

AKQA would have been the better choice. The deal is expected to close between the second and third quarters of 

fiscal year 2011. 

Select Q2 2011 Internet Services M&A Deals 

On April 5th, Kana Software, a provider of service experience management solutions, acquired Overtone Inc., a 

social media and customer listening service. The terms of the transaction were not disclosed. Overtone acts as an 

extension of Kana’s customer service platform into the social sphere. The deal highlights a recent trend towards 

assimilation of social media monitoring, as seen with Salesforce’s acquisition of Radian6 in March. 

On April 8th, video search engine Blinkx announced the acquisition of online ad network Burst Media for $30 

million in stock and cash, representing 0.80x LTM revenue. The deal gives Blinkx the capability to serve contextrelevant 

videos on Burst Media’s vast network of partner sites, increasing the quantity and value of video 

advertisements sold. Currently, the Burst network focuses on static ads, which sell for a significantly lower price 

than video. The acquisition is part of a wave of consolidation in the online ad space that brings different 

capabilities together. 

GREE, Japan’s largest mobile gaming social network, acquired OpenFeint, an American mobile social gaming 

platform, for $104 million cash on April 21st. The move echoes another Japan-based rival DeNa’s acquisition of 

American startup ngmoco in October 2010. With this deal, GREE is trying to expand internationally and gain a U.S. 

consumer base that will push the joint ecosystem over 100 million users. In addition to the purchase price, GREE 

will provide additional capital for growing the OpenFeint platform and will give long term incentives to the 

OpenFeint team. 




On April 25th, ValueClick Media announced the acquisition of Greystripe, a developer of ad-supported mobile 

games and applications, for $70 million in cash on hand. Per the terms of the deal, Greystripe will be run as an 

independent subsidiary of ValueClick. The purchase of Greystripe complements ValueClick’s online ad network 

business as an extension of its reach into the “red hot” mobile sector. This deal departs from ValueClick’s historic 

acquisition strategy which was considered to be more “value-centric”. This is a solid, strategic move at a premium 

price, and hopefully more industry leaders across the digital marketing, media, and information services sectors 

will follow suit by enhancing their mobile capabilities in 2011. 

In late April, Yahoo! acquired an innovative social startup while also selling a legacy social bookmarking business. On 

April 25th, Yahoo! acquired IntoNow, which provides technology that allows users to check-in and share television 

shows with friends via Twitter or Facebook. Yahoo! purchased IntoNow just three months after its launch for 

around $30 million. On April 27th, Yahoo! sold its online bookmarking service Delicious.com to AVOS Systems. 

AVOS was founded by two cofounders of YouTube. They plan on adding new life into the site by adding many new 

features in the coming months. 

On May 16th, PRIMEDIA Inc. announced that it would be acquired by an affiliate of the global private investment 

firm TPG Capital for $524.0 million, representing 2.31x LTM revenue and 7.7x LTM EBITDA. PRIMEDIA 

shareholders will receive $7.10 for each share of outstanding common stock. Georgia-based PRIMEDIA distributes 

and produces apartment and rental consumer directories through mobile, online, and print platforms to simplify the 

home search process. Throughout the past few years, the media company has transitioned from a predominantly 

print publication company to incorporating digital media channels with websites like ApartmentGuide.com, 

Rentals.com, and NewHomeGuide.com. PRIMEDIA will expand TPG’s digital media portfolio which currently includes 

companies such as Hotwire and Travelocity. 

On May 18th, Yahoo! Inc. announced the acquisition of advertising platform 5to1 Holding Corp. for $26.4 million. 

5to1 is an advertising network for premium media publishers. It allows publishers to select ads to fill unsold 

inventory, ensuring the relevance of advertisements. 5to1 launched in 2009 and raised $12.8 million in funding from 

Fuse Capital, the Frost Group, and Prism Ventureworks. The acquisition expands Yahoo!’s advertising inventory 

and gives the company greater access to premium publishers valued by advertisers. The acquisition is part of a 

larger push into display advertising and adds to their purchase of display ad technology company Dapper last year. 

On May 26th, Reply! announced the acquisition of MerchantCircle, the nation’s largest online network of business 

owners for $60 million in stock and cash. Reply! provides the leading advertising marketplace for locally-targeted 

consumer traffic. The revenues of the two companies combined are projected to surpass 100 million in 2012. After 

the acquisition, Reply! plans to group into two components. Reply! Marketplace will serve as the company’s existing 

advertising marketplace. Reply! Media will hold the company’s portfolio of consumer-facing websites. Reply!’s CEO 

and founder Payam Zamani believes local businesses around the country need and want a simple and effective 

locally-targeted advertising network. By combining MerchantCircle’s network of millions of customers and local 

businesses with its ad network, the company believes they can better provide this need. 

On June 13th, Google announced the acquisition of Admeld, a yield-optimization tool for publishers, for a rumored 

price of approximately $400 million. The deal demonstrates Google’s heavy commitment to dominate the display 

advertising marketplace. In 2008, Google acquired DoubleClick, an ad-serving platform for publishers, and in 2009 

it acquired mobile advertising company AdMob and data-driven ad optimization platform Teracent. In 2010, Google 




then acquired DSP Invite Media through DoubleClick. Admeld was founded in 2007 and had raised $30 million in 

private equity. 

On June 16th, DG FastChannel announced the acquisition of MediaMind Technologies Inc for approximately $423 

million in an all-cash transaction, representing 5.1x LTM revenue and 28.5x LTM EBITDA. DG FastChannel provides 

cross-channel advertising and distribution services, and MediaMind offers a campaign management platform and 

diverse digital advertising solutions. This is the eighth acquisition made by DG FastChannel in the last six years. 

While DG’s operations are primarily domestic, MediaMind operates in 64 countries, giving DG access to the 

international advertising market. DG FastChannel also hopes to increase it’s presence with online and television 

advertising through the purchase. The acquisition demonstrates the fast-growing valuations in the digital media 

space; the sale price represents a 91% premium to MediaMind’s IPO price in August 2010. 

On June 29th, Specific Media, an online media and advertising platform, announced the acquisition of MySpace for 

$35 million. MySpace was one of the first to bring social networking into the mainstream, but the company was 

unable to maintain its dominant market position. The value of the firm has declined dramatically since 2005, when it 

was acquired by News Corporation for $580 million. News Corp. hoped to capture the synergies between the social 

network and its content business, but the supposed benefits of the merger never materialized. The sale is a sad 

example of what can happen if acquirers nurture their acquisitions to keep up with their innovation. In this case, 

Facebook simply rolled right over them. Hopefully a new home and some magic from new investor Justin Timberlake 

can reinvigorate the company. 

Select Q2 2011 Financial Technology Services M&A Deals 

PayPal, a unit of eBay, announced two deals in a span of two weeks in April. On April 20th, PayPal announced an 

agreement to acquire Where, a mobile search application provider, for an undisclosed amount. On April 28th, PayPal 

also agreed to acquire Fig Card Corporation, a mobile payments solution provider, for an undisclosed amount. 

Where offers a location-based ad network, which allow advertisers to show their mobile ads only to people near 

their store. Boston-based Fig Card allows merchants to accept mobile payments in stores by using a simple USB 

device that plugs into the cash register or point-of-sale terminal. These deals represent PayPal’s desire to invest in 

multi-channel commerce and the online to offline experience, and the moves should bolster the mobile and onlineto-offline 

portions of eBay’s strategy both for its marketplace and PayPal businesses. These are also examples of 

some key Boston-based mobile companies that are seeing great success. 

On June 27th, S1 announced the acquisition of Fundtech for $228.4 million in enterprise value, representing 1.57x 

LTM revenue and 10.8x LTM EBITDA. The combined company will operate under the name FundTech and will be 

headquartered in S1’s Atlanta headquarters. S1 and Fundtech both offer payment and transaction solutions, and 

their combined company will create opportunities in larger contracts and take advantage of many cross-selling 

opportunities. The merger is still subject to the approval of both companies’ shareholders, regulators, and Israeli 

court approval. The deal is expected to close before the end of the year. 

On June 29th, Fiserv announced its acquisition of CashEdge for $465 million. Although Fiserv has its own 

competing financial payment platform, combining the two will allow it to offer a broader range of digital payments 

services, including P2P money requests. To combat PayPal’s dominance in the P2P payment sector, Visa partnered 

with both Fiserv and CashEdge in March. Together, they created a service that allows consumers to directly send 




money between each other with a mobile number or email address, instead of with their credit card. As a combined 

company, Fiserv and Cashedge have a greater strategic position in disrupting the P2P market. The deal is expected 

to be accretive by next year, and the transaction is expected to close around September. CashEdge presented at 

the Gridley January Conference in 2008. 

Select Q2 2011 Data Services M&A Deals 

On April 27th, CoStar agreed to acquire its rival LoopNet for approximately $650 million in cash and stock, 

representing 8.19x LTM revenue and 30.3x LTM EBITDA. WOW! That’s an eye popping price to take the major 

competitor off the market but the synergies are significant. CoStar provides commercial property data and 

listings. LoopNet operates an online marketplace for commercial real estate in the United States. The companies 

said this deal will double CoStar's paid subscriber base to at least 160,000. It will also boost CoStar's database of 

active commercial property listings to about 2 million. Additionally, CoStar expects there to be little overlap 

between the subscribers of the two companies and anticipates numerous cross-selling opportunities. The move is 

projected to save CoStar $20 million annually over the next 24 months, and CoStar hopes the acquisition will make 

it the premier online resource for researching, analyzing, and marketing commercial real estate properties as it 

tries to expand its customer base. 

On June 13th, Verisk Analytics, a leading source of risk information and decision support solutions, agreed to 

acquire Health Risk Partners (HRP) for $60 million. This deal came about less than two months after Verisk 

acquired Bloodhound Technologies, a provider of real-time pre-adjudication claims editing for healthcare payers, 

on April 27th for $82 million. Similar to Bloodhound, HRP is a leading provider of solutions to optimize revenue, 

ensure compliance, and improve quality of care for Medicare Advantage and Medicaid health plan. Both of these 

deals will bolster Verisk’s presence in the healthcare industry and “create opportunities for cross-marketing and 

revenue synergies while offering next-generation technologies”, according to Verisk’s CEO. 

Select Q2 2011 SaaS and Outsourcing Services M&A Deals 

On April 6th, Genpact Limited, an India-based business process and technology management firm, acquired 

business process outsourcing provider Headstrong Corporation for $550 million in cash. By acquiring Headstrong, 

Genpact strengthens its presence in the U.S. and enhances its BPO growth, which has been flat over the past few 

years. Genpact President and CEO Pramod Bhasin stated, “[with] this acquisition, we are gaining critical domain and 

technology expertise in the complex but highly attractive capital markets industry vertical.” Genpact anticipates 

that this acquisition will enable the company to be a global leader in domain-led services to the capital markets. 

On April 26th, SuccessFactors, a provider of cloud-based business execution software solutions, signed an 

agreement to acquire Plateau Systems, a provider of web-based software tools for businesses, for $290 million in 

cash and stock. The deal adds many large clients to SuccessFactors, including General Electric and NASA. As a 

result of the agreement, the combined companies will have more than 15 million users in 4,000 businesses. 

SuccessFactors had been looking to acquire a company focused in learning management, and the move is a solid 

acquisition, particularly since it forms a symbiotic combination with SuccessFactors’ acquisition of social video 

mobile learning provider, Jambok. As the cloud-based industry starts to heat up and become more competitive, 

companies need to make sure to keep adding to their product line to stay relevant. 




On May 2nd, ExlService Holdings, a leading provider of outsourcing and transformation services, formally acquired 

Outsource Partners International (OPI), a leading provider of finance & accounting ("F&A") outsourcing services, 

for $91 million, representing about 1.2x LTM revenue. OPI, which has approximately 3,700 employees between the 

United States, Asia, and Europe, serves roughly 80 clients and generated about $75 million in revenues during the 

last calendar year. According to EXL, the addition of OPI's end-to-end F&A outsourcing expertise to EXL's own 

outsourcing and transformation capabilities will create a world-class product targeted to help CFO’s tackle their 

most complex challenges more easily. This move comes a year after EXL acquired PDMA Inc., a maker of an 

insurance policy administration platforms used by roughly 40 global insurers. 

On May 16th, Autonomy, one of the largest European software companies, agreed to acquire several units of 

Boston-based Iron Mountain for $380 million. By acquiring Iron Mountain’s digital archiving, e-discovery, and online 

backup units, Autonomy asserts itself as one of the leaders in data storage providers and adds about 6,000 

customers. According to Autonomy CEO Michael Lynch, this acquisition makes Autonomy the cloud platform of 

choice and places the group "at the centre of the changes in the analytics of unstructured data, processing in the 

cloud-based platforms, and desktop virtualization”. The company estimates that this deal will increase revenue 

annually by $130-$140 million. Last year Autonomy set aside a $1.1 billion war chest for acquisitions, and now has 

another $700 million to spend on further deals. 

On June 21st, software giant Oracle Corporation announced the acquisition of FatWire Software, a provider of 

web experience management solutions, for an undisclosed amount. The purchase of FatWire will strengthen 

Oracle’s customer relationship management solutions and online presence. In January, Oracle purchased Art 

Technology Group, a developer of e-commerce software, for approximately $1.0 billion. The acquisition of FatWire 

will further assist Oracle in its strategy of integrating marketing campaigns into its CRM and e-commerce 

applications. Oracle is responding to the way other companies in the web content management industry are 

incorporating new communication channels and following suit by purchasing technology it lacks. 

The following charts illustrate each sector’s M&A transactions for the second quarter of 2011. 

Select M&A Deals in Gridley's Targeted Sectors 

Second Quarter 2011 

($ in millions) Premium Paid 

Implied Enterprise Value to 

to Stock Price 

Announcement Enterprise LTM LTM Forward 30 Days Prior to 

Date Acquirer Target Value Revenue EBITDA P/E Announcement Date 


06/29/11 Arsenal Brand LP (nka:Arsenal LP) Russell Shaw LP NA NA NA NA NA 

06/27/11 Consolidated Graphics, Inc. RT Associates, Inc. NA NA NA NA NA 

06/13/11 Fuseideas, LLC Bright Matter LLC (nka:Fuseideas-Maine) NA NA NA NA NA 

06/02/11 Universal Millennium, Inc. W.A. Wilde Company NA NA NA NA NA 

06/02/11 Survey Sampling International LLC Opinionology, Inc. NA NA NA NA NA 

05/31/11 AbleNet, Inc. TeleConcepts NA NA NA NA NA 

05/23/11 Dunnhumby Limited BzzAgent, Inc. NA NA NA NA NA 

05/17/11 Publicis Groupe SA Rosetta Marketing Strategies Group, Inc. $575.0 2.67x NA NA NA 

04/25/11 Epsilon Data Management, LLC Aspen Marketing Services, Inc. 345.0 1.43x 8.6x NA NA 

04/07/11 Ruder Finn, Inc. The Rogers Group NA NA NA NA NA 

Subtotal $920.0 












06/30/11 Dimension Data Holdings plc OpSource, Inc. NA NA NA NA NA 

06/29/11 Specific Media, Inc. MySpace, Inc. NA NA NA NA NA 

06/29/11 MobileBits Holdings Corp. Pringo, Inc. NA NA NA NA NA 

06/28/11 eGames Inc. Heyday Games, Inc. $3.4 NA NA NA NA 

06/28/11 Vendio Services, Inc. Comparison Ventures, Inc. NA NA NA NA NA 

06/28/11 beRecruited, Inc. We The Fan, Inc. NA NA NA NA NA 

06/27/11 bNET Communications, Inc. GoMo News NA NA NA NA NA 

06/27/11 Archipelago Learning, Inc. Alloy Multimedia, Inc. 2.0 NA NA NA NA 

06/24/11 Cumulus Broadcasting, Inc. The Green Half NA NA NA NA NA 

06/23/11 Chegg, Inc. Notehall, Inc. NA NA NA NA NA 

06/21/11 Oracle Corp. FatWire Corporation NA NA NA NA NA 

06/20/11 Createthe Group, Inc. Morpheus Media, LLC (nka:Morpheus Media, a NA NA NA NA NA 

06/20/11 NeuMedia, Inc. Swanky Apps, LLC NA NA NA NA NA 

06/15/11 Taulia Inc. Anoowa, Inc. NA NA NA NA NA 

06/16/11 Quicksilver Real Estate Solutions, LLC Real Design Online, LLC NA NA NA NA NA 

06/16/11 HubSpot, Inc. Performable, Inc. NA NA NA NA NA 

06/16/11 DG FastChannel, Inc. MediaMind Technologies Inc. 422.7 5.05x 28.5x 31.4x 45.1% 

06/16/11 Media Technologies Inc. Our World Live, Inc. NA NA NA NA NA 

06/13/11 Google Inc. Admeld Inc. 400.0 NA NA NA NA 

06/14/11 Channel Intelligence, Inc. ClickEquations, Inc. NA NA NA NA NA 

06/10/11 Evolve Media Corp. Crowd Ignite NA NA NA NA NA 

06/10/11 CommerceTel Corp. DigiMark, LLC NA NA NA NA NA 

06/17/11 Redhawk Advisors, LLC, Investment Arm We Heart It NA NA NA NA NA 

06/06/11 SoundBite Communications, Inc. SmartReply, Inc. 3.2 NA NA NA NA 

06/07/11 LSF Interactive, Inc. 15miles NA NA NA NA NA 

06/06/11 CrowdSavings.com, LLC Daily Deal Squad, Inc. NA NA NA NA NA 

06/07/11 Variety, Inc. TVtracker.com, Inc. NA NA NA NA NA 

06/06/11 eBay Inc. Magento Inc. NA NA NA NA NA 

06/06/11 Dowden Health Media, Inc. Priority Publications Inc. NA NA NA NA NA 

06/03/11 Cendyn Corporation RoundTableHQ, LLC NA NA NA NA NA 

06/06/11 Majesco Entertainment Co. Quick Hit, Inc. 0.8 NA NA NA NA 

06/01/11 Centercode, Inc. Customer Feedback Solutions, Inc. NA NA NA NA NA 

06/01/11 Moosylvania Marketing, L.C. The Loud Few, LLC NA NA NA NA NA 

06/01/11 Tippr.com LLC DealPop NA NA NA NA NA 

06/01/11 Code 42 Software, Inc. Recursive Awesome, LLC NA NA NA NA NA 

06/01/11 Big Fuel Communications, LLC Apex Exposure, Inc. NA NA NA NA NA 

06/07/11 Midwest Energy Emissions Corp. (nka:China China Youth Media, Inc., Prior to Reverse Merger with NA NA NA NA NA 

05/31/11 VMware, Inc. Event Robot, Inc. NA NA NA NA NA 

06/06/11 FlyCast Inc. TapJS NA NA NA NA NA 

05/27/11 Youthology Media CraftedByTeens, LLC NA NA NA NA NA 

05/26/11 SignUp4, LLC Worktopia, Inc. NA NA NA NA NA 

05/26/11 BlippMedia, LLC PulseMedica NA NA NA NA NA 

05/26/11 Reply! Inc. MerchantCircle, Inc. 60.0 NA NA NA NA 

05/25/11 BuyWithMe, Inc. Groop Swoop, LLC NA NA NA NA NA 

05/25/11 Pricetector, Inc. Price Protectr LLC NA NA NA NA NA 

05/24/11 Yodle Inc. Profitfuel, Inc. NA NA NA NA NA 

05/24/11 Scalable Workforce, LLC Crowdsource.com NA NA NA NA NA 

05/25/11 DealerTrack/AAX, Inc. eCarList, LLC 45.3 6.48x NA NA NA 

05/23/11 Millennial Media, Inc. Condaptive NA NA NA NA NA 

05/23/11 Jive Software, Inc. Offisync Corp. NA NA NA NA NA 

05/23/11 BUMP Network, Inc. Bump Mobile Inc NA NA NA NA NA 

05/20/11 Evolve Media Corp. WholesomeBabyFood.com NA NA NA NA NA 

05/20/11 Ambistar Ventures wantANDfound.com, LLC NA NA NA NA NA 

05/25/11 CrowdGather, Inc. PbNation, LLC 3.2 NA NA NA NA 

05/19/11 The Pulse Network, LLC New Marketing Labs, LLC NA NA NA NA NA 

05/19/11 Main Street Connect, LLC CentralMassNews.com NA NA NA NA NA 

05/18/11 Zynga, Inc. DNA Games Incorporated NA NA NA NA NA 

05/18/11 DEMCO, Inc. Evanced Solutions, Inc. NA NA NA NA NA 

05/18/11 Progressive Distribution Services Inc. Email Concepts, Inc. (nka:Progressive Email Concept LLC) NA NA NA NA NA 

05/18/11 AutoTrader.com, Inc. VinStickers, LLC NA NA NA NA NA 

05/19/11 BizziBiz Franchise, Inc. BounceFire, LLC NA NA NA NA NA 

05/17/11 SmartLink Internet Strategies, Inc. Guardworks Consulting NA NA NA NA NA 

05/17/11 PubMatic, Inc. ReviNet, Inc. NA NA NA NA NA 

05/16/11 Motorsport.com, Inc. vDream Inc. 0.3 NA NA NA NA 

05/17/11 Publicis Groupe SA Rosetta Marketing Strategies Group, Inc. 575.0 2.67x NA NA NA 

05/18/11 Yahoo! Inc. 5to1 Holding Corp. 26.4 33.76x NM NA (38.2%) 

05/16/11 TPG Capital; TPG Partners VI, L.P. PRIMEDIA Inc. 524.0 2.31x 7.7x NA 48.8% 












05/12/11 AlphaBird, Inc. PlaceVine Inc. NA NA NA NA NA 

05/12/11 Buddy Media, Inc. Spinback, Inc. NA NA NA NA NA 

05/11/11 HomeAway, Inc. Second Porch Inc. NA NA NA NA NA 

05/11/11 WebMediaBrands Inc Inside Network, Inc. $14.9 NA NA NA NA 

05/24/11 Manfred Ruf Hotelplace, Inc. (nka:Rarus Minerals Inc.) 0.4 NA NA NA NA 

05/10/11 Arke Systems, LLC Zertia, LLC NA NA NA NA NA 

05/10/11 E-Drive Autos, LLC E-ZDealership.com NA NA NA NA NA 

05/10/11 Score Media Inc. Mobile1Sports LLC NA NA NA NA NA 

05/10/11 GetJar Networks Inc. Infrinity Inc. NA NA NA NA NA 

05/09/11 Zynga, Inc. Sapus Media NA NA NA NA NA 

05/09/11 ClickMail Marketing, Inc. Strategic Design Group, LLC NA NA NA NA NA 

05/09/11 AVOS Systems, Inc. Tap11, Inc. NA NA NA NA NA 

05/09/11 ACS Technologies Group, Inc. The City NA NA NA NA NA 

05/09/11 3D Systems Corp. The3dStudio.com, Inc. NA NA NA NA NA 

05/05/11 IGN Entertainment, Inc. UGO Entertainment, Inc. NA NA NA NA NA 

05/04/11 Warner Bros. Home Entertainment Group Flixster, Inc. NA NA NA NA NA 

05/03/11 TrueCar, Inc. Honk LLC NA NA NA NA NA 

05/02/11 Limelight Networks, Inc. Clickability, Inc. 10.0 NA NA NA NA 

04/27/11 AVOS Systems, Inc. del.icio.us, Inc. NA NA NA NA NA 

04/25/11 ValueClick Media, Inc. Greystripe, Inc. 70.0 NA NA NA NA 

04/25/11 Yahoo! Inc. IntoNow Inc. NA NA NA NA NA 

04/21/11 GREE International, Inc. OpenFeint Inc. 104.0 NM NA NA NA 

04/11/11 Ozura World Ltd. Tatto, Inc. 60.0 NA NA NA NA 

04/08/11 Blinkx plc Burst Media Corporation 30.1 0.80x NM NA NA 

04/08/11 Local.com Corp. Rovion, Inc. 2.5 1.60x NM NA NA 

04/05/11 KANA Software, Inc. Overtone, Inc. NA NA NA NA NA 

Subtotal $2,358.3 




Implied Enterprise Value to to Stock Price 




06/30/11 Gary Jonas Computing Ltd. Youbill, Inc. NA NA NA NA NA 

06/29/11 Fiserv, Inc. CashEdge, Inc. $465.0 NA NA NA NA 

06/29/11 Parthenon Capital Partners H.D. Vest, Inc. NA NA NA NA NA 

06/29/11 Clear2Pay nv/sa Lexcel Solutions, Inc. NA NA NA NA NA 

06/28/11 Experian plc Medical Present Value, Inc. 185.0 NA NA NA NA 

06/27/11 Intuit Inc. Mobile Money Ventures LLC NA NA NA NA NA 

06/27/11 S1 Corporation Fundtech Ltd. 228.4 1.57x 10.8x 18.4x 14.1% 

06/09/11 AccountNow, Inc. Ready Financial Group, Inc. NA NA NA NA NA 

05/09/11 Wells Fargo Bank, National Association Foreign Currency Exchange Corp. NA NA NA NA NA 

05/02/11 TSYS Merchant Solutions TermNet Merchant Services, Inc. NA NA NA NA NA 

04/28/11 PayPal, Inc. Fig Card Corporation NA NA NA NA NA 

04/20/11 eBay Inc. Where, Inc. NA NA NA NA NA 

04/07/11 Deluxe Corp. Banker's Dashboard, LLC 40.4 NA NA NA NA 












Data Services 

06/13/11 Verisk Analytics, Inc. Health Risk Partners LLC $60.0 NA NA NA NA 

06/10/11 IMS Health Incorporated Med-Vantage, Inc. NA NA NA NA NA 

06/10/11 Phinma Corporation Fuld & Company, Inc. 9.0 NA NA NA NA 

06/09/11 NORTHSTAR Travel Media, LLC PhoCusWright Inc. NA NA NA NA NA 

06/01/11 Thomson Elite Skywire Software, LLC NA NA NA NA NA 

05/12/11 Cerner Corporation Resource Systems NA NA NA NA NA 

04/27/11 Verisk Analytics, Inc. Bloodhound Technologies, Inc. 82.0 NA NA NA NA 

04/27/11 CoStar Group Inc. LoopNet, Inc. 654.4 8.19x 30.3x NM 32.1% 










06/28/11 TDS Hosted & Managed Services, LLC OneNeck IT Services, Corporation $95.0 2.57x NA NA NA 

06/21/11 Oracle Corp. FatWire Corporation NA NA NA NA NA 

06/15/11 Thing5 L.L.C VAS Holdings, Inc. NA NA NA NA NA 

06/14/11 IndiSoft LLC Microtek Systems Inc. NA NA NA NA NA 

06/14/11 Acta Capital Path-2 Ventures, LLC NA NA NA NA NA 

06/14/11 Brown & Brown of Connecticut, Inc. Corporate Benefit Consultants, LLC NA NA NA NA NA 

06/13/11 VMware, Inc. Digital Fuel Technologies, Inc. NA NA NA NA NA 

06/09/11 Procura, LLC ContinuLink Health Technologies L.L.C. NA NA NA NA NA 

06/02/11 Trillium Capital, LLC Stream Global Services, Inc. 578.3 0.71x 8.3x NA 54.7% 

05/25/11 NA NLess Solutions, LLC NA NA NA NA NA 

05/23/11 Bankers Employer Services Inc. Decision HR USA, Inc. NA NA NA NA NA 

05/18/11 SPS Commerce, Inc. Direct EDI, Inc. 9.8 2.17x 11.5x NA NA 

05/16/11 Autonomy Corp. plc Iron Mountain Inc., Key Assets of Digital Division 380.0 NA NA NA NA 

05/09/11 Deloitte Consulting Oco, Inc. NA NA NA NA NA 

05/06/11 LRA Global HR, Inc. Innovation HR Inc. NA NA NA NA NA 

05/02/11 Exlservice Holdings, Inc. Outsource Partners International, Inc. 91.0 1.20x NA NA NA 

04/26/11 SuccessFactors, Inc. Plateau Systems, LTD. 290.0 NA NA NA NA 

04/14/11 Evolution Benefits, Inc. Lighthouse1, LLC NA NA NA NA NA 

04/06/11 Genpact Ltd. Headstrong, Inc. 550.0 2.53x NA NA NA 

Subtotal $1,994.2 




Q2 2011 Private Equity / Venture Capital Financing Transactions 

Private Equity 

In Q2 2011, U.S. private equity fundraising increased to $40.7 billion, up 29% from the previous quarter, according 

to Dow Jones. In addition, the number of fund closings decreased dramatically from Q1, falling from 89 to 54. The 

fundraising environment is clearly improving as, in addition to these stats, it took an average of 15.5 months to 

raise money this quarter, down from 20.4 months last year. And, on the deal front, we are starting to see good 

quality portfolio companies coming up for sale, more so than we have seen in a long time. In terms of private equitybacked 

exits, the number of deals and total volume surpassed records set in Q4 2010, with 309 exits valued at 

$120.1 billion in Q2 2011. So, for the strategic buyers out there, stay tuned for some great deal flow. 

Venture Capital 

According to a report by Dow Jones, there were 14 U.S. venture-backed IPOs in Q2 2011 raising $1.7 billion. This 

is substantially more than the $859 million raised by 15 venture-backed companies that went public in Q2 2010. 

Surprisingly, the total number of M&A deals decreased from 105 to 91 from the same period last year. However, 

the aggregate value of the deals increased from $7.2 billion to $9.2 billion. According to Dow Jones, Information 

Technology was the most active area for acquisitions and was driven by a high interest in Software companies. On 

the fundraising side, venture capital funds raised $8.1 billion, a 20% increase over the same period last year. 

However, the number comes with a caveat: the number of funds that closed fundraisings decreased 38% to 50 

funds, and over 80% of the capital was generated by seven firms. While it’s a healthy sign that more capital is 

being raised, only a handful of firms are prospering. 

Notable Investments in Gridley Sectors 

We would like to highlight a few interesting private equity investments in Q2 2011: 

• On April 2nd, DataXu raised $20 million in a series C round of investments. DataXu provides a bidding 

platform, analytics, and optimization processes for display advertisers. Menlo Ventures led the round 

with $10 million of the funding. Atlas Venture and Flybridge Capital Partners also participated in the 

round. All three private equity firms have invested in DataXu before. DataXu has raised $37 million to 

date and is clearly looking to expand. 

• On April 4th, LivingSocial announced a planned raise of $565 million in a Series E round of investment, 

with $400 million already closed. The investment was co-led by existing investors Amazon and Lightspeed 

Venture Partners, and also includes participation from returning investor T. Rowe Price and new 

investor Institutional Venture Partners. The company had previously raised almost $200 million from 

Amazon and Lightspeed in December. This investment round values the company at $3.0 billion. This 

latest fundraise helps to close the gap between LivingSocial and industry leader Groupon and widen the 

gap between them and the rest of the daily deal companies. 

• Keeping with the e-commerce and “billion dollar baby” themes, on April 15th, Gilt Groupe announced a 

$138 million raise in its fifth round of investment, with new investor SOFTBANK Group providing $62.5 

million. This investment was raised at a pre-money valuation of approximately $1 billion, and the company 

has raised a total of $240 million to date. The funding will go toward launching new verticals and making 




acquisitions to get into new markets, including a joint venture with SOFTBANK specifically targeting 

Japan. Good luck to Kevin Ryan in one of the fastest-growing startups yet. 

• On April 20th, Mu Sigma, Inc., a provider of marketing and risk analytics, raised $25.8 million from 

Sequoia Capital in a Series C round of funding. Mu Sigma presented at our January Conference this year. 

• On April 27th, mobile credit card reader company Square, Inc. raised funding in the single digit millions 

from new investor Visa. Then Square announced another raise on June 7th that eventually closed on June 

29, raising $100 million from existing investor Kleiner Perkins Caufield & Byers with participation from 

Tiger Global Management. The round was raised at a post money valuation of $1.6 billion. Mary Meeker 

of KPCB will join the company’s board. With the proliferation of smartphones, we are seeing heavier 

commitments into mobile technologies, especially payments. 

• On April 28th, ideeli raised $41 million in a series C round of investments. ideeli operates an online 

shopping network which provides major discounts on luxury brands to its users. Next World Capital led 

the round of fundraising with StarVest Capital, Kodiak Venture Partners, and two others also 

participating. With the new funding, ideeli plans to scale its operations by improving its technology and 

increasing its catalogue. As the private sales model (and e-commerce sector in general) heats up, the 

major players are positioning their “pocket books” to keep up with the changing and increasing market 

demand. 

• On June 9th, Coupons, Inc. raised $200 million at a post-money valuation of about $1 billion from 

undisclosed investors. Owner of the aptly named and prime domain Coupons.com, the company hopes to 

use the money to quickly expand and capture a piece of the coupon market that is quickly shifting from 

offline to online. The company will use the cash to hire 100 more employees (for a total of 300), expand 

internationally (currently operating in 12 European countries), and acquire valuable assets. 

The following charts illustrate each sector’s private equity investments for Q2 2011. 




Select Private Equity Deals in Gridley's Targeted Sectors - Q2 2011 


($ in millions) 

Date Investor Company Description 

Investment 

Amount 

6/17/11 Undisclosed Family Network, Inc. Family Network, Inc., doing business as Affinity Solutions, provides loyalty 

programs for top financial institutions, insurance companies, retailers, and 

publishers. 

$8.0 

5/20/11 Triangle Capital Corporation PowerDirect PowerDirect provides direct marketing services. The company offers door hanger 

advertising; direct mail services, including database marketing, production 

services, mail house, and fulfillment. 

$8.0 

4/29/11 Undisclosed Simulmedia, Inc. Simulmedia, Inc., a media marketing company, engages in program promotion on 

the television. Its predictive models and technology enable television companies 

to deliver the promotions to the viewers. Simulmedia, Inc. has a strategic alliance 

with MAGNA Global USA, Inc. 

$9.3 

4/20/11 Sequoia Capital Mu Sigma, Inc. Mu Sigma, Inc., an analytics outsourcing company, provides business decision 

support services. The company provides marketing and risk analytics, pricing 

analytics, portfolio management, process optimization, regulatory compliance 

services, product design and pricing, channel and distribution, risk underwriting, 

claims management, and investment management services. 

$25.8 








Investment 

Amount 

6/29/11 First Round Capital; Khosla Ventures; 

Accel Partners Management LLP; 

Andreessen Horowitz 

RockMelt, Inc. RockMelt, Inc. operates as a web browser focusing on online social media. $30.0 

6/28/11 LLR Partners Inc.; Updata Partners Pet360 Inc. Pet360 Inc. operates webites, including www.petfooddirect.com, 

www.nationalpetpharmacy.com and www.petmd.com. 

$18.0 

6/27/11 Undisclosed Martini Media 

Network, Inc. 

Martini Media Network, Inc. operates media networks in California and New York. 

The company operates MartiniLife.com, a site that hosts a curated publishing 

network in golf, equestrian sports, sailing, and other leisure pursuits of high-networth 

consumers. 

$8.0 

6/27/11 Undisclosed MediaMorph Inc. MediaMorph, Inc. focuses on the provision of software products and services to 

content owners and video publishers. Its solutions intends to manage and optimize 

the process of generating revenue from video, audio, and textual content 

distributed through the Internet and mobile phones. 

$5.0 

6/24/11 Union Square Ventures; Spark Capital; 

O'Reilly AlphaTech Ventures, LLC; O'Reilly 

AlphaTech Ventures, L.P.; Andreessen 

Horowitz; Andreessen Horowitz L.P. 

Foursquare Labs, Inc. 

Foursquare Labs, Inc. operates a platform for mobile users to meet up with 

friends and discover new places online. It mixes social, locative, and gaming 

elements that encourage users to explore the cities in which they live. 

$50.0 

6/20/11 Undisclosed 2Catalyze Inc. 2Catalyze Inc. is a Web-service company that creates reviews, email polls, and 

Web surveys. It offers services including personal feedback, decision support, 

customer engagement, rapid peer reviews, team feedback, quick pulse, 

integration, live support, analytics, and configuration tools. 

$13.5 

6/16/11 Undisclosed Direct Media 

Technologies, Inc. 

Direct Media Technologies, Inc. engages in domain ownership, domain 

monetization, and domain sales. 

$30.0 

6/16/11 New Enterprise Associates; Greycroft 

Partners LLC; Lerer Ventures 

Alphonso Labs, Inc. 

Alphonso Labs, Inc. develops and provides applications for news reading on mobile 

devices. It offers Meet Pulse, a news reading application for devices that 

transforms user favorite Websites into a colorful and interactive mosaic. 

$9.0 

6/16/11 Atlas Venture LLP; Egan-Managed Capital; 

Massachusetts Technology Development 

Corporation; Longworth Venture Partners; 

CommonAngels; Kepha Partners 

OwnerIQ, Inc. 

OwnerIQ, Inc. operates a network of channel-focused Websites to help 

consumers find and store must have self-support product information. It enables 

marketing professionals to target their online market communications, by using 

consumers purchase behavior. 

$7.0 

6/16/11 Undisclosed Smarter Agent, Inc. Smarter Agent, Inc. develops GPS real estate search and property information 

applications for mobile phone users. It offers mobile applications that enable 

consumers to search for homes for sale and apartments for rent using their 

mobile phones. 

$6.0 

6/16/11 Google Ventures; AOL Ventures; Jump 

Ventures 

Shopobot Shopobot operates as a website for online shopping. NA 

6/15/11 Highland Capital Partners; RRE Ventures 

LLC; Draper Fisher Jurvetson Gotham 

Ventures; IA Ventures 

Yipit, Inc. 

Yipit, Inc. aggregates and recommends restaurant, bar, spa, and shop service 

deals online in the United States. 

$6.0 








Investment 

Amount 

6/15/11 Anthem Venture Partners; New Enterprise 

Associates; Trinity Ventures; Scale 

Venture Partners; Lightbank LLC 

BeachMint, Inc. 

BeachMint, Inc., a development stage company, intends to operate as internet 

retailers. The company plans to offer advisory services for purchase decisions to 

consumers from celebrities and industry experts. 

$23.5 

6/9/11 Undisclosed Coupons, Inc. Coupons, Inc. provides printable coupon marketing and technology solutions for 

publishers and advertisers. It also offers promotion, advertising, and direct 

marketing services, as well as creates, distributes, tracks, and reports consumerprinted 

coupons. 

$200.0 

6/7/11 Bain Capital, LLC; Greylock Partners TellApart, Inc. TellApart, Inc. provides online advertising sale and display services. $13.0 

6/7/11 Granite Ventures, LLC; Adobe Ventures; 

Northport Investments; Correlation 

Ventures; Triangle Peak Partners. Inc. 

Bunchball, Inc. 

Bunchball, Inc. operates as a Web services company. It offers Web catalytics for 

the Websites. The company also provides Bunchball Analytics, a reporting and 

analytical system. 

$6.5 

6/6/11 Undisclosed Lucidmedia 

Networks, Inc. 

LucidMedia Networks, Inc. operates an online display advertising network and 

media management platform. Its online contextual advertising platform and metanetwork 

focuses on optimizing display advertising performance. 

$6.2 

6/2/11 Undisclosed MovieClips, Inc. MovieClips, Inc. operates a Website that offers a collection of movie clips in the 

United States, Canada, and internationally. It allows its users to search, find, 

watch, discuss, and share movie clips from movies. 

$7.0 

6/2/11 Hu Investments L.L.C.; Tandem 

Entrepreneurs Management Services, LLC. 

Juice in the City, Inc. 

Juice in the City, Inc. operates a daily deal Website. Its Website sells deals on 

fun activities for moms by bringing paying customers to businesses. 

$6.0 

6/2/11 DLD Ventures GmbH Ubermedia Ubermedia operates an online marketplace for real-time search. It makes 

Twitter, Facebook, LinkedIn, and other social networks more relevant to their 

members, as well as boosts authoritative members of social networks on any topic 

to the top of search results. 

$5.6 

6/1/11 Undisclosed Emerging Travel Inc. Emerging Travel Inc. operates as an online travel agency. $15.8 

6/1/11 WWC Capital Group, LLC; First Round 

Capital 

Performline, Inc. 

Performline, Inc., an online performance marketing and technology company, 

focuses on providing leads through lead generation and cost-per-acquisition (CPA) 

marketing. 

NA 

5/31/11 Spark Capital; Betaworks; SV Angel; 

Lightbank LLC; Lerer Ventures; ENIAC 

Ventures; ENIAC Ventures, L.P.; Thrive 

Capital; Morado Venture Partners 

Lulo Ventures Inc. 

Lulo Ventures Inc. operates OnSwipe, a platform that enables publishers to 

provide their content and advertising on touch-enabled devices via Web browser. 

The company provides application solutions, and branding and content 

customization solutions. 

$5.0 

5/30/11 Andreessen Horowitz; DST Global Airbnb, Inc. Airbnb, Inc. provides an online marketplace that allows users to rent out their 

extra space. The company connects people who have space to spare with those 

looking for a place to stay. 

$100.0 








Investment 

Amount 

5/27/11 Accel Management Co, Inc.; RoseTech 

Ventures, LLC; Circle Financial Group, LLC; 

Richmond Global; PKS Capital 

LearnVest, Inc. 

LearnVest, Inc., a personal finance company, provides interactive and educational 

articles, and personal finance information on the Web. The company provides 

checklists, financial tools, a set of financial basics, and access to a collaborative 

community based upon personal relevance. 

$19.0 

5/27/11 Sutter Hill Ventures; General Catalyst 

Partners; PAR Capital Management, Inc.; 

Felicis Ventures LLC 

Expert Media, Inc. 

Expert Media, Inc., doing business as Room 77, provides online information 

related to travel. 

$10.5 

5/27/11 Cisco Systems, Inc.; Trinity Ventures; U.S. 

Venture Partners; Voyager Capital 

Act-On Software, 

Inc. 

Act-On Software, Inc. provides online marketing services. The company offers 

demand generation, lead nurturing, content syndication, lead qualification and 

scoring, sales-force and WebEx integration, website monitoring, list management, 

and e-mail marketing services. 

$10.0 

5/26/11 Canaan Partners; Redpoint Ventures; Intel 

Capital; Pinnacle Ventures; Performance 

Equity Management LLC; Google Ventures; 

SK Telecom Ventures 

Kabam, Inc. 

Kabam, Inc. develops games for social networks. It offers traditional and social 

games, such as online strategy and sports games for players. 

$85.0 

5/26/11 Undisclosed Batanga, Inc. Batanga, Inc. develops interactive content for online consumers. The company 

provides managed services and infrastructure for the deployment and 

distribution of digital media, and enabling broadband access providers to offer 

interactive content products to end-users. 

$16.5 

5/25/11 General Catalyst Partners Getaround, Inc. Getaround, Inc. provides a peer-to-peer car sharing marketplace that enables car 

owners to rent their cars. 

NA 

5/20/11 Intel Capital iStreamPlanet Co. iStreamPlanet Co. develops and provides digital media strategy, managed 

Webcasting services, and Internet applications to enable online media delivery. 

The company also offers a suite of software-as-a-service based digital media 

applications for online media. 

$11.0 

5/20/11 Undisclosed WhaleShark Media, 

Inc. 

WhaleShark Media, Inc. owns and operates coupons and deals websites. The 

company owns portals under www.Deals.com, www.Deals2Buy.com, 

www.CheapStingyBargains.com, www.CouponSeven.com, and www.CouponShare.com 

names. 

$10.0 

5/20/11 Madrona Venture Group; Trinity Ventures; 

Menlo Park California 

ShopIgniter, Inc. 

ShopIgniter, Inc., an online retail platform, focuses in marketing through social 

networking sites. It enables retailers, wholesalers, and brands to sell products, 

find customers, and manage their online stores through Web interface. 

$8.6 

5/19/11 Undisclosed Masterseek Corp. Masterseek Corp. operates as a b2b search engine that establishes contact 

between buyers and suppliers internationally. It also offers MasterRank, a points 

system for ranking corporate Websites; and online business directory. 

$25.8 

5/19/11 Undisclosed GroupMe, Inc. GroupMe, Inc. operates a group messaging, conference call, and location and 

photo sharing network in the United States. 

$11.5 

5/19/11 Highland Capital Partners; Kleiner, Perkins, 

Caufield & Byers 

session M, Inc. session M, Inc. develops mobile application tool. $6.5 








Investment 

Amount 

5/19/11 Draper Fisher Jurvetson; Polaris Venture 

Partners, Inc.; Draper Fisher Jurvetson 

Gotham Ventures; Stanford Management 

Company; Zelkova Ventures; Lerer 

Ventures; Thrive Capital 

JIBE Inc. JIBE Inc. offers job search engine. $6.0 

5/18/11 Tiger Global Management LLC Mollyguard 

Corporation 

Mollyguard Corporation, doing business as Eventbrite, provides online registration 

solutions to event organizers. 

$50.0 

5/18/11 Undisclosed JUFWBE 

Technologies Inc. 

JUFWBE Technologies Inc. operates a social networking site for small business 

owners, educational institutions, and professionals. It enables businesses to 

promote their goods and services through the online marketplace and business 

directory. 

$10.0 

5/17/11 CMEA Capital; Trident Capital, Inc.; ATA 

Ventures 

Jobvite, Inc. 

Jobvite, Inc. offers recruitment application that allows to collaborate on making 

hires. It serves HR and staffing executives, recruiters, hiring managers, 

executives, employees, and jobseekers. 

$15.0 

5/16/11 Insight Venture Partners; Ontario Venture 

Capital Fund L.P.; Georgian Partners; 

Northleaf Capital Partners 

Dealfind.com Inc. 

Dealfind.com Inc. provides online deals in the areas of food and drinks, 

attractions, and products and services. 

$31.0 

5/13/11 Intel Capital; Time Warner Investments; 

The9 Limited, Investment Arm 

CrowdStar, Inc. 

CrowdStar, Inc. develops and markets Web based games and application under 

the name Happy Aquarium and Happy Island. 

$23.0 

5/13/11 Accel Management Co, Inc.; SAP Ventures; 

Index Ventures; Presidio STX, LLC; Mitsui 

& Co. Global Investment, Inc.; DAG 

Ventures, LLC; AOL Ventures 

OpenX Technologies, 

Inc. 

OpenX Technologies, Inc. provides digital advertising technology. It offers 

OpenX Market, an ad exchange where ad networks, agencies, demand side 

platforms, and brands purchase inventory from Website publishers; and OpenX 

Enterprise, a data collection and targeting system. 

$20.0 

5/9/11 Noro-Moseley Partners; BLH Venture 

Partners, LLC; Linch Capital 

Half Off Depot, Inc. 

Half Off Depot, Inc. operates halfoffdepot.com, a Website that promotes a local 

business on social media Websites, as well as offers the local online community a 

discount to try it out. 

$7.0 

5/12/11 Altos Ventures; Sigma Partners; Sutter 

Hill Ventures; Adobe Ventures 

Demandbase, Inc. 

Demandbase, Inc. provides sales and marketing professionals with the first payas-you-go 

service for buying B2B marketing lists and sales leads. 

$10.0 

5/12/11 Redpoint Ventures; Trinity Ventures thredUP Inc. thredUP Inc. operates an online clothing exchange platform that enables peer-topeer 

swapping of old clothes for new ones. 

$7.0 

5/11/11 Accel Management Co, Inc.; Norwest 

Venture Partners; Redpoint Ventures; 

FLOODGATE 

BranchOut, Inc. 

BranchOut, Inc. develops and markets web based applications for career 

networking. 

$18.0 

5/11/11 Undisclosed Exit41, Inc. Exit41, Inc. provides online ordering software, and call center software and 

services for the restaurant industry. 

$16.0 

5/11/11 Morgenthaler; Pitango Venture Capital NetGate, Inc. NetGate, Inc., doing business as PageOnce, Inc., creates personal assistant 

applications for the BlackBerry, iPhone, or computer's Web browser. It provides 

online consumer services that allow users to manage their personal online 

accounts. 

$15.0 








Investment 

Amount 

5/11/11 Carmel Ventures; Spark Capital; Lerer 

Ventures 

Group Commerce Inc. 

Group Commerce Inc. provides group-buying technology and payment 

infrastructure, and merchandising and deal sourcing services. Its solutions enable 

publishers to sell products and services to their audiences. 

$10.0 

5/11/11 LaunchCapital LLC; ZIG Capital; 500 

Startups 

ekoVenture, Inc. 

ekoVenture, Inc. doing business as zozi.com, operates as an online adventure 

travel marketplace promoting deals on local activities. 

$7.0 

5/11/11 Alloy Ventures, Inc.; Reed Elsevier 

Ventures; True Ventures 

Giga Omni Media, Inc. 

Giga Omni Media, Inc. operates a network of sites that provide daily online news. 

The company offers technology news, analysis, and opinions on topics ranging 

from broadband and online games. 

$6.0 

5/10/11 Azure Capital Partners; Golden Seeds LLC; 

Kohlberg Ventures LLC 

OpenRoad Integrated 

Media LLC 

OpenRoad Integrated Media, LLC engages in publishing and marketing of books 

online. OpenRoad Integrated Media, LLC was incorporated in 2009 and is based in 

New York, New York. 

$8.0 

5/10/11 Undisclosed Delivery Agent, Inc. Delivery Agent, Inc. provides shopping-enabled entertainment for television 

shows, movies, magazines, sports, and music videos. It provides e-commerce 

solutions for entertainment companies. 

$5.0 

5/10/11 Undisclosed MySocialNightlife 

LLC 

MySocialNightlife LLC operates an online community to elevate the social 

nightlife experience. It enables users to identify and discover events, and 

connect with others with similar musical and fashion interests. 

NA 

5/9/11 Undisclosed tastytrade, Inc. tastytrade, Inc. provides online service offering trading ideas, financial insight, 

deep discounts on financial products, and services and entertainment through 

streaming high definition (HD) video. 

$20.0 

5/9/11 Undisclosed Mobi Munch, Inc. Mobi Munch, Inc. provides online and offline platform for chefs and 

restaurateurs. It offers online community, a forum that provides information 

related to mobile food, food truck listings, real-time tracking information, 

insightful reviews and recommendations. 

$7.6 

5/6/11 Draper Fisher Jurvetson; Norwest 

Venture Partners; Trident Capital, Inc.; 

Comcast Ventures; Panorama Capital 

JiWire, Inc. 

JiWire, Inc. operates as a mobile audience media company. It provides 

advertisements for access in Wi-Fi locations and devices. The company’s medium 

enables marketers to reach mobile audiences in a point-of-connection. 

$20.0 

5/5/11 Institutional Venture Partners; New 

Enterprise Associates; Novak Biddle 

Venture Partners; Institutional Venture 

Partners XIII, L.P. 

Clearspring 

Technologies, Inc. 

Clearspring Technologies, Inc. provides creation, distribution, management, 

tracking, and monetization services. The company provides platforms that are 

used for creating, configuring, and editing widgets from management consoles. 

$20.0 

5/4/11 Shasta Ventures; First Round Capital; 

FLOODGATE; Baseline Ventures; 500 

Startups; Collaborative Fund 

TaskRabbit, Inc 

TaskRabbit, Inc. operates a Web and mobile marketplace that helps individuals 

and small businesses in a community to outsource their tasks and deliveries. It 

provides services for people and businesses to outsource products and services 

related to offices and employee perks. 

$5.0 

4/30/11 Undisclosed 5k Fans, LLC 5k Fans, LLC offers a web site featuring promotional and business development 

tools for music artists to manage their music careers. 

$7.0 

4/29/11 IDG Ventures; IDG Capital Partners Funzio, Inc. Funzio, Inc. develops social games on Facebook and mobile. $20.1 








Investment 

Amount 

4/29/11 Canaan Partners; Evergreen Venture 

Partners 

Peer39, Inc. 

Peer39, Inc. provides semantic advertising solutions. It offers SemanticMatch, a 

solution for advertising targeting and revenues, and brand protection solutions. 

$7.2 

4/28/11 Constellation Ventures; Kodiak Venture 

Partners; StarVest Partners, L.P.; The Cue 

Ball Group, LLC; StarVest Partners II, 

L.P.; Next World Capital; Next World 

Capital 

ideeli, Inc. 

ideeli, Inc. owns and operates an online shopping community that connects luxury 

brands with consumers. 

$41.0 

4/28/11 Undisclosed Datran Media Corp. Datran Media Corp. provides digital marketing solutions. The company provides 

Aperture, a real-time audience measurement and targeting platform that helps 

digital marketers and publishers identify and engage their ideal audience, and 

UnsubCentral, an email compliance and suppression list management. 

$9.5 

4/28/11 Undisclosed Impress Your World, 

Inc. 

Impress Your World, Inc. offers online communication tools. It combines the HD 

video email and video conferencing with an interface for companies and sales 

people for marketing and prospecting strategies. 

$5.0 

4/28/11 Institutional Venture Partners; Kleiner, 

Perkins, Caufield & Byers 

LegalZoom.com, Inc. LegalZoom.com, Inc. provides online legal document and filing services. NA 

4/27/11 Andreessen Horowitz Magnet Systems, Inc. Magnet Systems, Inc. develops social applications for enterprises. Its 

development portfolio includes Workplace Interaction Network (WIN), a 

development platform that enables companies to build and deploy cloud-based, 

enterprise-ready social applications. 

$12.6 

4/25/11 North Bridge Venture Partners; Union 

Square Ventures 

Big Head Labs, Inc. 

Big Head Labs, Inc. operates as a service and tool for Web comments and 

discussions. It operates Disqus comment system, a comment system and hosted 

service that facilitates the comments and discussions of publishers, bloggers, 

commenters, and readers on Websites. 

$10.0 

4/25/11 The Travel Channel, L.L.C.; Bain Capital 

Ventures; Scripps Investments & Loans, 

Inc. 

Oyster Travel 

Corporation 

Oyster Travel Corporation provides online reviews of hotels. $10.0 

4/22/11 Undisclosed Helium, Inc. Helium, Inc. is simultaneously an online community for writers and a directory for 

user-generated articles. Writers can submit articles to 24 different channels , 

write for the side of a heated debate, try to capture publisher writing 

assignments bounties or win user-voted Helium writing contests. 

$10.0 








Investment 

Amount 

4/19/11 Mohr Davidow Ventures; High Peaks 

Venture Partners; Contour Venture 

Partners 

Ticketfly, Inc. 

Ticketfly, Inc., a ticketing and marketing company, engages in selling events 

tickets online. It offers tickets for theatres, bowls, billiards and backrooms, and 

factory concert houses. 

$12.0 

4/19/11 Norwest Venture Partners TreatFeed, Inc. TreatFeed, Inc. provides word-of-mouth rewards system that enables its 

members to earn redeemable points and cash for sharing deals and product info 

with their friends. It offers Social Tree, a shopping application that helps its 

members share deal and product information into redeemable rewards. 

$5.4 

4/18/11 Battery Ventures; S3 Ventures; The 

Blackberry Partners Fund, L.P.; Daylight 

Partners; ATP Capital Management Inc. 

30 Second Software, 

Inc. 

30 Second Software, Inc., doing business as Digby, provides mobile commerce 

and mobile in-store customer engagement solutions for retailers. It offers Digby, 

a mobile commerce software platform that enables retailers to offer a mobile 

optimized Website and applications. 

$8.0 

4/11/11 First Round Capital; Flybridge Capital 

Partners; IA Capital Partners 

SavingStar, Inc. 

SavingStar, Inc., operates a digital grocery rewards platform for consumer 

goods to deliver grocery rewards. It enables consumer packaged goods brands 

and retailers to promote their products and services by offering digital grocery 

savings for purchasing products in supermarkets and drug stores. 

$7.0 

4/15/11 Draper Fisher Jurvetson; General Atlantic 

LLC; Goldman Sachs Group, Merchant 

Banking Division; Matrix Partners; New 

Enterprise Associates; Eastward Capital 

Partners, LLC; SoftBank Capital; Pinnacle 

Ventures; TriplePoint Capital, LLC; Draper 

Fisher Jurvetson Growth 2006 Fund L.P. 

Gilt Groupe, Inc. 

Gilt Groupe, Inc. operates as an online community that provides its members with 

access to coveted fashion and luxury lifestyle brands. It provides access by 

invitation only to men, women, and children coveted fashion and luxury brands at 

sample sale prices. 

$138.0 

4/15/11 Undisclosed Magnet Systems, Inc. Magnet Systems, Inc. develops social applications for enterprises. Its 

development portfolio includes Workplace Interaction Network (WIN), a 

development platform that enables companies to build and deploy cloud-based, 

enterprise-ready social applications. 

$20.4 

4/15/11 Menlo Ventures; Woodside Fund; Tenaya 

Capital; The Four Rivers Group 

PowerReviews, Inc. 

PowerReviews, Inc. is the leading provider of social commerce solutions, including 

customer reviews, to retailers and brands. The company’s innovative tag-based 

approach to collecting, organizing, structuring and analyzing user-generated 

content significantly boosts product sales and customer engagement. 

$10.0 

4/14/11 Pitango Venture Capital; Verizon Ventures VideoSurf, Inc. VideoSurf, Inc. operates a video search engine that allows users to search, 

discover, and watch online videos. 

$16.0 

4/14/11 Undisclosed My Life Registry, LLC My Life Registry, LLC operates as an online gift registry Website that allows its 

users to add items from stores of choice for gift giving occasions. It allows users 

to create a gift registry or wishlist, and provides gift ideas and planning tools for 

receiving and giving gifts. 

$5.3 

4/14/11 Undisclosed Machinima, Inc. Machinima, Inc., an online entertainment network, provides videos from video 

games. It offers trailers, gameplay, montages, music videos, and original 

machinima series and movies. The company also provides advertising. 

$5.0 








Investment 

Amount 

4/13/11 Undisclosed I Love Rewards, Inc. I Love Rewards Inc. is a Web-based incentive marketing company that designs, 

develops, and implements employee rewards and recognition programs.The 

company offers SalesCentive, a non-cash incentive solution, which allows sales 

managers to set goals, monitor progress, and reward sales people accordingly. 

$20.0 

4/12/11 Institutional Venture Partners; Sequoia 

Capital; Institutional Venture Partners 

XIII, L.P. 

Sugar, Inc. 

Sugar, Inc. operates as an online media company. It operates lifestyle and 

entertainment Websites that cover celebrity, fashion, shopping, beauty, 

entertainment, food, and health topics. The company also offers a shopping 

engine for fashion and beauty categories. 

$15.0 

4/13/11 Hudson Ventures; Motorola Solutions 

Venture Capital 

Scanbuy, Inc. 

Scanbuy, Inc. is the developer of ScanLife, an end-to-end mobile barcode 

platform that helps marketers and content providers link their media to mobile. 

$12.5 

4/13/11 General Catalyst Partners; Northgate 

Capital Group, L.L.C.; DAG Ventures, LLC 

Visible Measures 

Corporation 

Visible Measures Corporation operates as an independent third-party 

measurement company for Internet video publishers, advertisers, and viral 

marketers. It specializes in measuring the consumption and distribution of 

Internet videos. 

$7.7 

4/12/11 Accel Management Co, Inc.; Andreessen 

Horowitz; Andreessen Horowitz L.P. 

Tiny Speck, Inc. Tiny Speck, Inc. makes and provides online games. $10.7 

4/11/11 Undisclosed Main Street Connect, 

LLC 

Main Street Connect, LLC operates community news website. $12.0 

4/11/11 EDB Investments Pte. Ltd.; Meritage 

Private Equity Funds; Intel Capital 

Crisp Media 

Crisp Media, a media advertising company, provides an advertising platform for 

building, serving, and measuring interactive campaigns across desktop and mobile 

platforms. 

$6.1 

4/9/11 Undisclosed GrubHub, Inc. GrubHub, Inc. operates a pay-for-results advertising service. It enables users to 

order food from a network of restaurants online or by phone. 

$34.0 

4/8/11 U.S. Venture Partners; Bain Capital 

Ventures 

ScoreBig, Inc. ScoreBig, Inc. provides online ticketing services focusing on live events. $20.0 

4/8/11 The Aurora Funds, Inc.; Chrysalis 

Ventures, Inc.; Technicolor SA; Capitol 

Broadcasting Company, Inc.; .406 

Ventures, LLC; Cisco Systems, Investment 

Arm 

Digitalsmiths 

Corporation 

Digitalsmiths Corporation operates as a video indexing and digital content 

publishing technology company. Its computer-vision based video indexing search 

and interpretation algorithms empowers content owners and publishers to 

monetize their digital video content, and advertisers to target their ads. 

$12.5 

4/8/11 Sequoia Capital WhatsApp Inc. WhatsApp Inc. provides a cross-platform mobile messaging application that allows 

a client to exchange messages without having to pay for SMS. 

$8.0 

4/8/11 Highland Capital Partners; Menlo Ventures Pixable Inc. Pixable Inc., a browser-based photo book creator and album editor, provides 

online photo services. It enables users to create and print artistic photo books 

using the photos that they and their friends have stored on Facebook with 

additional content, such as captions or tagging information, and comments. 

$7.2 








Investment 

Amount 

4/7/11 Berg and Berg Enterprises, LLC; EXA 

Ventures 

GoldSpot Media Inc. 

GoldSpot Media Inc. provides media and video advertising solutions. It offers 

miSpot, a mobile advertising solution that manages and delivers advertising 

campaigns across all mobile channels. The company also provides miApp, a tool for 

content owners to deliver mobile applications to their target audience. 

$12.1 

4/7/11 Boulder Ventures Limited; Highway 12 

Ventures; High Country Venture, LLC; 

Colorado Fund I, L.P.; Foundry Group 

Lijit Networks, Inc. 

Lijit Networks, Inc. provides search-powered applications and statistics to 

individual online publishers and online publisher networks. Its search services 

allow readers to search blog publishers' posts, bookmarks, and blogrolls. 

$10.0 

4/7/11 Madrona Venture Group; Maveron LLC Decide, Inc. Decide, Inc. operates in stealth mode and offers a shopping service that brings 

transparency to electronics shopping. 

$6.0 

4/7/11 Charles River Ventures Fluent Mobile, Inc. Fluent Mobile, Inc. develops mobile content organization and delivery solutions 

for handheld devices. It offers Fluent News application that aggregates madefor-mobile 

content from the news sources across the Web into a single mobile 

newspaper. 

$5.5 

4/6/11 Undisclosed 30 Second Software, 

Inc. 

30 Second Software, Inc., doing business as Digby, provides mobile commerce 

and mobile in-store customer engagement solutions for retailers. It offers Digby, 

a mobile commerce software platform that enables retailers to offer a mobile 

optimized Website and applications. 

$8.0 

4/4/11 Institutional Venture Partners; T. Rowe 

Price Group, Inc.; Lightspeed Venture 

Partners; Amazon.com Inc., Investment 

Arm 

Hungry Machine, Inc. 

Hungry Machine, Inc., doing business as LivingSocial.com, is a social discovery and 

cataloging network. 

$565.0 

4/4/11 Labrador Ventures; Mohr Davidow 

Ventures; Wilson, Sonsini, Goodrich & 

Rosati; Northgate Capital Group, L.L.C.; 

Nokia Growth Partners 

Rocket Fuel Inc. 

Rocket Fuel Inc. provides an ad serving technology platform for agencies and 

advertisers to manage, run, and evaluate online campaigns. The company provides 

various solutions, such as Audience Booster that identifies audiences in media, 

and Search Booster, which allows to reach people across the Web who searched 

for you, and expressed interest in a product or service. 

$6.6 

4/2/11 Atlas Venture LLP; Menlo Ventures; 

Flybridge Capital Partners 

DataXu, Inc. 

DataXu, Inc. provides an advertisement optimization and bidding platform for 

online display advertisers. It offers advertisers with consumer and brand 

insights, and consumer and creative attributes, performance reporting and 

analysis services; and real-time bidding services. 

$20.0 

4/1/11 RRE Ventures LLC; SoftBank Capital; 

Betaworks; AOL Ventures; SV Angel; High 

Line Venture Partners 

SocialFlow, Inc. 

SocialFlow, Inc. provides a software-as-a-service application for the real time 

conversion of messages in social channels. Its solution helps publishers, brand 

marketers, and online retailers to enhance click-throughs, ReTweets, mentions, 

sharing, and organic follower growth on Twitter, Facebook, and Google. 

$7.0 








Investment 

Amount 

6/29/11 Accel Management Co, Inc. Braintree Payment 

Solutions, LLC 

Braintree Payment Solutions, LLC provides credit card payment processing 

solutions for businesses. It offers an online merchant account, credit card data 

storage, managed recurring billing, and payment gateway to accept credit card 

payments. 

$34.0 

6/19/11 Undisclosed Naratte, Inc. Naratte, Inc., a technology development company, develops software for 

proximity-based device-to-device communication. The company offers Zoosh, a 

software solution that enables users to exchange data between devices using 

speakers and microphones found on various devices. 

$5.0 

6/13/11 Old Willow Partners, L.L.C. AisleBuyer LLC AisleBuyer LLC develops a virtual shopping assistant and mobile self-checkout 

software for use in iPhones. Its application allows shoppers access to information 

by scanning UPC barcodes in the store using a Smartphone camera. 

$7.5 

6/7/11 Kleiner, Perkins, Caufield & 

Byers; Tiger Global 

Management LLC 

Square, Inc. 

Square, Inc. provides credit card reader solutions for mobile devices. It offers 

credit card reader applications that enable users to accept credit card payments 

when plugged into their mobile devices. 

$100.0 

5/31/11 Mammoth Corporation 800 Commerce, Inc. 800 Commerce, Inc. provides various applications for payment processing, fraud 

protection, and eCommerce. It offers E-Commerce Web sites, and merchant 

processing Web site hosting services; and merchant services. 

$5.0 

5/27/11 Accel Management Co, Inc.; 

MeriTech Capital Partners 

YapStone, Inc. 

YapStone, Inc. provides electronic payment processing services for vacation 

rental management companies in the United States.The company offers 

VacationRentPayment, an integrated online payment processing solution that 

provides the ability to accept payments via various channels. 

$50.0 

5/24/11 Wellington Partners Venture 

Capital GmbH; TTV Capital; 

Balderton Capital 

eWise Group, Inc. 

eWise Group, Inc. designs and develops payment and online financial management 

solutions to e-commerce and financial services sectors worldwide. It offers 

eWise Pay By Account, a patented Online Banking Enabled e-Payments (OBeP) 

system, which addresses key industry challenges. 

$14.0 

5/11/11 Redpoint Ventures; Sutter Hill 

Ventures; Pinnacle Ventures; 

The Contrarian Group, Inc.; 

Opus Capital 

FreeMonee Inc. 

FreeMonee Inc. is a cash-gift network in the United States. It connects credit 

and debit cardholders of various financial institutions with national and local 

merchants. The company enables merchants to give ‘gifts’ directly to individual 

credit and debit cardholders through participating financial institutions. 

$11.0 

5/8/11 Opus Capital; SK Telecom 

Ventures 

Sequent Software, Inc. 

Sequent Software, Inc. provides near field communication (NFC) software 

solutions and systems. It offers solutions for payment networks, retailers, and 

the mobile ecosystem to offer NFC services to consumers. Its software enables 

companies to enable payment cards on NFC-enabled mobile devices. 

NA 

5/5/11 Undisclosed The Ohana Companies, LLC The Ohana Companies, LLC provides a technology platform for rebate processing 

and fulfillment. The company’s online solution enables consumers, retailers, and 

manufacturers to redeem, validate, and fulfill rebates electronically, as well as 

participate in promotional marketing. 

$12.0 

5/2/11 Monroe Capital LLC Applied Merchant 

Systems West Coast, Inc. 

Applied Merchant Systems West Coast, Inc. provides electronic payment 

processing solutions. The company offers payment processing for merchant 

accounts, Internet merchants, and retail merchants. It also provides consulting 

services for corporate merchants. 

$15.0 





Financial Technology (cont'd) 



Investment 

Amount 

4/21/11 Undisclosed iPayment Holdings, Inc. iPayment Holdings, Inc., through its subsidiary, provides credit and debit cardbased 

payment processing services to small business merchants. Its services 

enable merchants to process traditional card-present transactions, as well as 

card-not-present transactions. 

$125.0 

4/12/11 RRE Ventures LLC; American 

Express Company; Opus 

Capital; The Blackberry 

Partners Fund, L.P.; Rogers 

Ventures; Verizon Ventures; 

ATP Capital Management Inc. 

Payfone, Inc. 

Payfone, Inc. provides online payment services. It allows users to pay for online 

goods and services using mobile credit. 

$19.0 

4/1/11 Undisclosed C-SAM, Inc. C-SAM, Inc. provides mobile payment technology solutions. Its products include 

OneWallet, a device-centric software application that allows secure electronic 

storage of a card currently in the user's physical wallet; MerchantWallet, an 

interface that facilitates merchants for electronic transactions; Wallet Service 

Center that provides card services. 

$15.0 





Data Services 



Investment 

Amount 

6/3/11 Undisclosed BVI Networks, Inc. BVI Networks, Inc. develops in-store business intelligence solutions for the retail 

industry. The company offers RetailNEXT product suite, a solution that enables 

retailers and manufacturers to collect, analyze, and present in-store data. 

$8.0 

6/1/11 New World Angels, Inc. VirtualWorks Group, Inc. VirtualWorks Group, Inc. develops enterprise software to locate critical 

information from silos spread across the enterprise. 

$8.5 

5/19/11 Hummer Winblad Venture 

Partners; Andreessen 

Horowitz 

Shacho, Inc. Shacho, Inc. develops business intelligence technologies. $10.0 

5/11/11 Mission Ventures; Sierra 

Ventures; Sumitomo 

Corporation Equity Asia 

Limited 

Alpine Analytics, Inc. 

Alpine Analytics, Inc. provides business analytics solutions through development 

of Alpine Miner which uncovers data patterns critical for enterprise decision 

support, customer retention, campaign optimization, or any predictive analytic 

application support. 

$7.5 

5/10/11 Village Ventures; True 

Ventures; IA Ventures 

Metamarkets Group, Inc. 

Metamarkets Group, Inc. offers price discovery data and analytics through its 

data platform. 

$6.0 

5/9/11 Undisclosed nPario, Inc. nPario, Inc. provides data products and services that enable companies to 

understand and market consumer commercial intent. 

$6.1 

4/22/11 Kleiner, Perkins, Caufield & 

Byers; Redpoint Ventures 

Datameer, Inc. 

Datameer, Inc. develops data analytics solutions for information technology and 

business users. It offers Datameer Analytics Solution, which enables users to 

access, analyze, and use data. The company also provides professional services, 

such as integration services, business domain consulting, and training. 

$9.5 

4/20/11 Undisclosed Palantir Technologies, Inc. Palantir Technologies, Inc. designs platforms for integrating and analyzing 

information. The company's products include Palantir Government, which 

integrates data and facilitates collaboration; and Palantir Finance, an analytical 

platform for hedge funds and financial institutions. 

$50.0 





SaaS & Outsourcing 



Investment 

Amount 

4/29/11 Intersouth Partners; Noro- 

Moseley Partners; C&B Capital, 

L.P.; Harbert Venture 

Partners, LLC 

PeopleMatter, Inc. 

PeopleMatter, Inc. provides Web-based talent management solutions restaurants, 

convenience stores, hospitality providers, and retailers. It offers a suite of HR 

tools, including hiring, learning, scheduling, performance management, rewards 

and recognition, and workplace social media collaboration. 

$7.3 

4/27/11 Undisclosed ProspX, Inc. ProspX, Inc. develops on-demand collaboration and automation solutions for 

producers, agencies, brokers, and carrier partners in the commercial insurance 

industry. It offers software as a service based solutions for managing multiparty 

sales processes. 

$10.0 

4/18/11 Lightspeed Venture Partners; 

GGV Capital; Khosla Ventures 

Evolv, Inc. 

Evolv, Inc. offers software-as-a-service platform based call center hiring 

management solutions. Its solutions enable its clients to identify, screen, and test 

potential candidates for various positions in call centers. It also offers Evolv 

Foresight, an on-demand sourcing, selection, and hiring platform for call centers. 

$15.8 

4/5/11 Rand Capital SBIC, L.P; Bain 

Capital Venture Fund, L.P.; 

Rand Capital SBIC, Inc.; 

Ingleside Investors, LLC; Bain 

Capital Ventures 

Liazon Corporation 

Liazon Corporation provides consumer-centric employee benefit services to small 

business employers in the United States. It offers a range of health, financial, 

and protection plans; a health savings account for those who choose an HSAqualified 

health plan; various dental options with multiple tiers of coverage. 

$13.1 




Outlook for the Market 

Debt, debt and more debt. Household debt, mortgage debt, credit card debt, state and municipal debt, federal 

debt, European debt. Everybody’s got it and no one seems to be able to reduce it. Someone needs to start showing 

some willpower. If not, it’s hard to believe that the market will hold up. According to The Wall Street Journal, 

consumers have 37% more debt than they did 10 years ago. The Fed has “flooded the markets” with approximately 

$2 trillion in debt since August 2008. U.S. government debt-to-GDP ratio is expected to hit 100%, up from 62% in 

2007, according to the IMF. Europe is in no better shape with Greece and Italy both teetering on the brink of 

default and other countries seemingly not far behind. 

As we said earlier, the news in and outlook for our sectors is much brighter than for the market as a whole. Both 

private and public companies are doing well-showing good growth and profitability. The IPO market is strong and 

performance is good. We believe the M&A market will pick up significantly throughout the second half of the year. 

And, though it might seem like we are in a “valuation bubble”, there’s lots of substance and growth underneath. 

Maybe these “billion dollar babies” don’t deserve quite the value that they are getting and maybe some of the 

private company sales the same. But, in general, the trends are good and there are solid, innovative companies 

emerging. Look for lots more to come. 

A Word about Gridley & Company LLC 

We are very busy and excited about the M&A and fundraising market in our sectors for the second half of the 

year. We have completed three deals so far this year and have lots more in the “hopper”. Additionally, in May, we 

hosted a highly successful “Mobile in May” event in partnership with The Yankee Group. With over 100 people in 

attendance, we discussed trends and opportunities in mobile advertising, commerce and payments. This is clearly 

the year for mobile (finally) and the high level of interest in this event proves it. The M&A market for mobile is a 

bit behind the level of consumer activity and corporate demand, but expect to see deal flow increase as strategic 

buyers figure out what capabilities they need to acquire. We are also excited about our upcoming 10th Annual 

Summer Networking Event and Golf Outing on July 20th (dinner) and 21st (presentations, panels, and golf) and 

expect a record turnout for that event as well. 

We have some interesting presentations on mobile and on the role of M&A in maintaining market leadership on our 

website along with all of our Gridley Guides. If you haven’t checked out our website (www.gridleyco.com) recently, 

it’s worth doing as we have LOTS of good content and research on it. Also, don’t forget to check out our blog, 

www.digitaldealings.com and to follow us on twitter @gridleyco and join us on LinkedIn. Like all of you, we are trying 

our best to keep up with all the exciting activity out there. It’s a great time to be a banker in our sectors as there 

is SO much to think about, write about, and participate in. 

As always, keep us in mind for any investment banking needs you may have. We work hard for our clients, listen to 

their key transaction objectives, and achieve highly successful outcomes for all. It’s a great market to be a seller 

and a “must do” one for strategic acquirers. Ignore the great opportunities out there at your peril. 

Best wishes for a happy and busy summer! 




Sincerely, 

Linda Bornhuetter Gridley 

On Behalf of the Team at Gridley & Company LLC 

If someone has forwarded you this newsletter and you would like to receive it on a regular basis, please e-mail 

info@gridleyco.com and request to be added to our newsletter mailing list. You may also download a copy of this 

newsletter at Gridley & Company LLC’s website, www.gridleyco.com. Finally, if you wish to be deleted from the 

recipient list, please e-mail info@gridleyco.com and request to be deleted from the newsletter mailing. 

Compass Newsletter 

Copyright © 2011 

Published by Gridley & Company LLC 

10 East 53 rd Street, 24th Floor 

New York, NY 10022 

(212) 400-9720 tel 

(212) 400-9717 fax 

info@gridleyco.com

The Compass Newsletter - Gridley & Company

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