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FreeWheel Closes $12M Financing Led by Foundation Capital and Battery Ventures

-       Previous FreeWheel Investor Battery Ventures Joined by Foundation Capital as FreeWheel’s Platform Accelerates the Volume of Premium Video Content Online

San Mateo, CA — April 30, 2009— FreeWheel, the first company to provide complete Monetization Rights ManagementÒ (MRMÔ) for both video content owners and publishers, today announced that it has closed a Series C round of venture capital financing, led by Foundation Capital and existing investor Battery Ventures.  With this investment, Ashmeet Sidana of Foundation Capital joins FreeWheel’s Board of Directors. 

Industry observers point to the wide adoption of FreeWheel’s MRM platform as a catalyst for the growth of premium content within the digital video ecosystem.   In the past 12 months since the US Patent and Trademark Office confirmed FreeWheel’s first mover advantage by registering its trademark for Monetization Rights Management, the company has signed more than 15 content providers as partners, added 15 ad networks and distribution partners, and grown to 70 employees in San Mateo, New York, and Beijing - all while maintaining an extremely strong balance sheet.

“We’re extremely pleased to participate in this round and look forward to adding value to FreeWheel on its Board of Directors,” said Mr. Sidana, General Partner of Foundation Capital, which has extensive experience in changing video models in digital, through its early-stage investments in and participation with Netflix and other companies.  “What FreeWheel is doing is enabling the premium video marketplace to capture value, and we see this as a tremendous opportunity.”

“Only high quality companies can raise capital in this economic environment,” said Roger Lee, General Partner at Battery Ventures.  “We are very fortunate to be an early investor in FreeWheel.  While everyone talks about monetizing online video, FreeWheel is making it happen, and this round is testament to FreeWheel’s team, their flawless execution, and the leadership position they have created.”

FreeWheel’s Monetization Rights Management (MRM) platform enables online video content owners and distributors to dynamically manage their inventory allocation, revenue accounting and ad delivery, thereby removing the barriers preventing revenue being realized across the value chain. FreeWheel’s MRM platform monitors and clarifies revenue share arrangements as well as who has the right to sell ad inventory, across the potentially huge numbers of videos, partnerships and agreements that content owners and distributors may have in place.

“We’re extremely gratified to be working with Foundation and Battery —- two of most advanced thinkers in core technology and digital media —- and this investment is just one more indication of our success in the market,” said Doug Knopper, co-Founder and co-CEO of FreeWheel.  “We’re enabling the development of the digital video ecosystem as it crosses the threshold from nascent opportunity to a multi-billion dollar market, and it’s becoming increasingly clear that it will be FreeWheel’s technology providing that market’s backbone.”

 

About Battery Ventures

Since 1983, Battery has been investing in technology and innovation worldwide. The firm partners with entrepreneurs and management teams across technology sectors, geographies and stages of a company’s life, from start-up and expansion financing, to growth equity and buyouts. Battery has supported many breakthrough companies around the world, including: Airespace (acquired by Cisco), Akamai Technologies (NASDAQ: AKAM), BladeLogic (acquired by BMC Software), Insitu (acquired by Boeing), LIFFE (acquired by EuroNext), and Neoteris (acquired by Netscreen).

 

Battery’s current portfolio includes emerging leaders in Cleantech such as: Advent Solar (next generation silicon-based solar technology), Imara (next generation battery technologies), Luminus Devices (solid state lighting), Modular Wind Energy (proprietary blade design for wind turbines), Qteros (advanced biofuels), Redwood Systems (energy control systems for green buildings), and SmartSpark Energy (reliable microinverters for integrated AC PV solar).

From offices in Boston, Silicon Valley, and Israel, Battery manages more than $3 billion in committed capital, including its current fund of $750 million.

 

About Foundation Capital
Founded in 1995, Foundation Capital is a venture capital firm committed to supporting entrepreneurs and their companies, targeting innovative opportunities in cleantech, consumer Internet and infrastructure; telecommunications and networking; and enterprise software and on demand services. Foundation Capital funds total more than $2.4 billion. For more information, www.foundationcapital.com.

 

About FreeWheel

To video content owners, rights holders, and publishers, FreeWheel provides the first Monetization Rights Management platform - a technology solution that dramatically reduces the unique financial risks and operational complexities of video ad management across syndication relationships. FreeWheel combines the innovation of a start-up with the most experienced and talented team of industry veterans. With decades of leadership experience at leading ad serving and monetization companies such as DoubleClick, Microsoft, Yahoo, and Visible World, FreeWheel's team is united in the understanding that video is fundamentally different from graphical ad placements and search, and needs a unique solution to deliver maximized revenue with minimal complexity. For more information, please visit: www.freewheel.tv.

 

Contact:

Mark Naples, 646-265-7372 or mnaples@witstrategy.com