VideoEgg

[ 2007.09.05 | Press Release ]

Funding to Accelerate Development of Video Ad Products and International Sales Network

SAN FRANCISCO, CA, September 5, 2007 – VideoEgg. Inc., the leading video advertising network for online communities, today announced that it has secured $15 million funding led by Focus Ventures. WPP, August Capital, and Maveron also contributed to the round.

VideoEgg, which delivers video advertisements across many popular social-networking web sites, such as Bebo, Hi5, Flixster and Facebook applications will use the capital to grow its advertising network business and accelerate product development efforts, including innovative ad formats, targeting, and the most effective ways to leverage social networks to build brands.

"The social net continues to take time and attention from traditional media, especially in youth segments. We think traditional ad networks are not meeting the needs of brand marketers who are looking for viable alternatives to TV advertising," said Matt Sanchez, co-founder and CEO of VideoEgg. "This funding will help us to continue to build the next generation ad network and make advertising more social, moving away from creating an impression to securing an actionable brand engagement.”

Demonstrating compelling industry growth, IDC recently stated that internet advertising is the most important sector of the digital marketplace and estimates that it will grow to $31.4 billion in 2011. VideoEgg has been taking advantage of this growth through partnering with some of the largest social networks, bringing outstanding consumer reach to its advertising partners, which include Universal Pictures, Discovery Networks, Electronic Arts, Ford, Nike, Unilever and Nestlé. The company has demonstrated significant growth and leadership since launching its ad network earlier this year, including partnering with several leading social networks and signing on over a hundred advertisers.

“It’s all about the right mix to win in this market, which requires insight into the needs of marketers with innovative technology and a focus on rich media,” said Steven Bird, general partner of Focus Ventures. “VideoEgg has made significant traction selling advertising solutions and is truly seen as an innovator in the ad world.”

The strategic investment signals great confidence in VideoEgg’s market leadership and ability to reinvent the ad network around new ideas of engagement for brands. The company will continue to expand to build its unique solutions and serve brands across tier one ad markets.

About VideoEgg
VideoEgg is the leading ad network for online communities. The Eggnetwork is currently compromised of more than 80 communities including fourteen of the top 20 social networks in the world. A video advertising innovator, VideoEgg was the first to commercialize interactive advertising overlays onto video, an approach that is being widely adopted by the industry. VideoEgg was founded in 2005 and is based in San Francisco, with offices in UK and New York City. The company has received investment from August Capital, First Round Capital, Maveron, WPP and Focus Ventures. For more information visit www.videoegg.com.

About Focus Ventures
Focus Ventures is a top-performing venture capital firm that invests in expansion-stage leaders in the software, semiconductor and communications industries. The firm currently manages $830 million, having closed its first fund in October 1997, Focus Ventures II in December 1999 and Focus Ventures III in March 2006. Focus Ventures offers its portfolio companies access to high quality partners in Asia and an extensive network of resources focused specifically on driving top-line revenue growth through customer introductions and by establishing distribution channels, joint ventures and licensing arrangements. Since the firm’s inception, Focus Ventures has invested in over 100 companies and has had 25 IPOs and 17 acquisitions by public companies. A select number of portfolio companies that have gone public include: Active Software, Agile Software, Alteon WebSystems, Aruba Networks, Commerce One, Copper Mountain, Corio, CoSine Communications, Interwoven, Isilon Systems, Loudcloud, Niku, Pixelworks, ShoreTel, Starent Networks and Verisity.

Media Contact:
Blanc & Otus on behalf of VideoEgg
Suzi Owens
(415) 856-5125
sowens@blancandotus.com