Canaan Partners Builds on Digital Media Leadership

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Firm Significantly Expanded Digital Media Portfolio in 2007, Including Three New Investments in Q4 That Raise the Bar in Next Generation Video Advertising, Virtual-Worlds and Social Networking.

The Internet is revolutionizing media and advertising and 2008 will be a break-out year for how content and user attention are monetized, as emerging technologies and new business models start to take hold

Canaan Partners, a $2.3 billion global venture capital firm, continues its leadership in digital media investing. Canaan made numerous digital media investments last year in companies including Associated Content, Lending Club and Tremor Media - strengthening its position as one of the leading venture investors in online advertising, monetizable content, and community-based online services. In the last quarter of 2007 alone, Canaan made digital media investments in Motionbox, one of the leading consumer video publishing and editing platforms; PicksPal, an online community and Facebook app of millions of sports fans; and Vivox, the market leader in providing live voice chat for online games and virtual worlds. The firm has already made its first digital media investment for 2008 and has key partners based in Manhattan and Brooklyn, NY, at the center of the digital media world.

"The Internet is revolutionizing media and advertising and 2008 will be a break-out year for how content and user attention are monetized, as emerging technologies and new business models start to take hold," said Warren Lee, Principal at Canaan. "With proven success in digital media over the last decade and key personnel based in New York, Canaan is well positioned to help develop today's innovative digital media companies into the market leaders of tomorrow."

Canaan has a long track record of success in the digital media market as an early and lead investor in Match.com, DoubleClick and Webloyalty. Canaan's digital media expertise and investments are focused on three areas: the management and monetization of digital content; next-generation advertising and video revenue models; and new Web-based services that empower consumers. The firm's current digital media portfolio includes fast-growing companies that have already become clear market leaders in their fields, including Tremor Media, the largest online video ad network; Blurb, an online service changing the face of publishing by letting anyone easily create and sell bookstore-quality books; and Active Networks, the world's largest directory of sports and recreational activities for amateur sports enthusiasts. As a global firm with offices located across the world, Canaan has also made international digital media investments in companies including, CellCast and Bharat Matrimony in India, and LiveU in Israel.

As the digital media market expands at an increasingly rapid pace in 2008, Canaan will continue to make strategic investments in companies with disruptive business and revenue models. In particular, the firm is looking to invest in companies focused on highly-targeted social network advertising, search-and entertainment based mobile marketing platforms and the syndication of user-generated content throughout the long-tail. Several of Canaan's portfolio companies are at the forefront of these trends and are shaping the market with their technology innovations. Peer39 provides innovative semantic advertising solutions. Cellcast allows people to play games and quizzes on their cell phones in India and offers advertisers access to a highly-engaged audience. Associated Content is leveraging its market-leading library of user-generated content into highly-targeted content channels, which it then syndicates to top-tier and long-tail publishers. Three of Canaan's current digital media companies, Associated Content, Blurb and Tremor Media, were selected as AlwaysOn OnMedia Top 100 companies this year.

About Canaan Partners
Canaan Partners invests in visionary entrepreneurs and provides them the networks, insights and operational guidance required to build high-performance technology and healthcare companies. For 20 years, they have taken an active and committed role in the companies in which they invest, and have completed more than 67 mergers and acquisitions and 51 IPOs. With $2.3 billion under management and a worldwide footprint, the firm's technology team is committed to catalyzing the growth of innovative companies in the digital media, communications & mobility, enterprise and clean tech industries. Among its successes are DoubleClick, the leading online advertising solution, Match.com, the most popular online dating site in the world, CommerceOne, the company that pioneered and brought B2B ecommerce to the masses; Capstone Turbine, first to market and world's leading producer of commercially viable microturbine energy products; and VOIP equipment supplier Acme Packet, which was one of the top ten performing IPOs of 2006. Other Canaan technology investments include SuccessFactors, Active Networks, Blurb, Dexterra, Tremor Media and GroundWorks. Canaan has offices in California, Connecticut, India and Israel. For more information visit: http://www.canaan.com.

Contact
Erin McMahon-Lyman
Marketing Alchemist
erin @ marketingalchemist.com
Phone (510) 649-1390

Gina Vakili
Canaan Partners
gvakili @ canaan.com
Phone (650) 854-8092

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