VideoEgg

[ 2006.09.28 | Press Release ]

SAN FRANCISCO, Calif., — (September 28, 2006) — VideoEgg, Inc., a leader in web-based video publishing solutions, today announced a $12 million Series C stock financing round led by Maveron, a leading consumer-focused venture capital firm. Previous investors August Capital and First Round Capital also participated in the round. The new funds will be used to evolve VideoEgg's video enablement platform for site publishers and continue to grow the Eggnetwork, the company's recently launched advertising network.

"We're backing VideoEgg because of its ability to create simplicity for consumers," said Jonathan Fram, managing partner at Maveron. "The technology platform VideoEgg has created is second to none. When combined with large social networking partners who thrive on user-generated content – several of which have already signed on – the potential reach of VideoEgg's platform is enormous."

"The popularity of online video over the past year has only begun to exhibit the potential effect this medium can have on advertising, as well as other kinds of revenue," said David Hornik, general partner at August Capital. "We are excited about this new round and look forward to an accelerated development of VideoEgg and its continued adoption by top-flight social networks as the company executes its solid game plan."

Currently, users of sites such as Bebo, Hi5, AOL, Dogster, Tagged, Current TV and dozens of other community sites can post video content using the VideoEgg Publisher from virtually any device with industry-leading speed and ease. The VideoEgg Publisher is a small browser plug-in that makes capturing, encoding, uploading, and sharing video online as easy and quick as posting photos.

"This second round of funding will help us to establish VideoEgg as the premier user-generated video enabler while we execute our advertising revenue model and expand our platform into additional social networking and vertical interest communities," said Matt Sanchez, co-founder and CEO of VideoEgg, Inc.

About VideoEgg
VideoEgg is a video-enabling platform that allows Web publishers to painlessly integrate video into their site experience and generate advertising revenue. The company's suite of tools makes it easy for end users to capture, edit, encode and post video online. A "universal adapter" captures video directly from virtually all digital devices resulting is faster upload times, and publishes it in a format that anyone can watch without worrying about player compatibilities. The VideoEgg network reaches millions of users through leading social networks and communities including AOL, Bebo, Dogster, Hi5, Tagged and Current TV. Based in San Francisco, VideoEgg is funded by Maveron, August Capital and First Round Capital. For more information, visit: http://www.videoegg.com.

About Maveron
Headquartered in Seattle, Washington, Maveron LLC is a leading consumer-focused venture capital firm. Founded in 1998 by Howard Schultz and Dan Levitan, Maveron's mission is to partner with entrepreneurs in the creation of extraordinary companies across the Consumer Continuum in order to generate outstanding financial returns. Representative Maveron investments include fast-growing classic consumer companies, such as Potbelly Sandwich Works and Cranium, businesses that use technology to deliver goods and services directly to consumers, such as eBay and Capella University, and companies like Allconnect and GameLogic, which supply technology and services to consumer-facing businesses. For more information about Maveron, visit www.maveron.com.

About August Capital
Founded in 1995, August Capital is a leading venture capital firm that invests in entrepreneurial teams throughout the information technology market spectrum. With more than 50 years of combined venture capital experience and dozens of successful IPOs and public company board relationships, August Capital partners have financed technology companies with an aggregate market capitalization of more than one-half trillion dollars.

About First Round Capital
First Round Capital is an early stage venture capital firm managed by Josh Kopelman, founder of Half.com and Howard Morgan, a founder of Idealab. First Round Capital provides seed-stage investment for innovative technology companies, often providing a company's first outside capital. As former entrepreneurs, the principals understand the challenges of launching a new enterprise and look to take an active role in portfolio companies.

Press Contact
Karen D'Angelo Hopp
Connors Communications
212-798-1443
khopp@connors.com