Dear Friend of DN Capital,

In this issue of our bi-annual newsletter we highlight some of the DN storm riders.

 

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Featured CEOs

In the current economic storm smashing the global economy, we celebrate those companies in the DN Capital portfolio that are not only performing well despite the turbulent markets, but are expanding rapidly.  Here are just a few that are riding high:

 

Leading mobile music discovery provider Shazam grew over 500% on the back of an extensive distribution network. This includes being a Top 10 iPhone application globally. In 2009, Shazam will also launch the service on the BlackBerry as well as other smart phones to continue this hyper growth. Management continues to focus on service quality and additional functionality, which CEO Andrew Fisher sees as paramount to the success of a service like Shazam.  Andrew notes: “As the global popularity and demand for Shazam continues to expand, we have seen our user base grow from 20 million to 35 million users since September 2008.  We have a passionate team committed to making Shazam ubiquitous and a magical experience; and by delivering compelling features we will change the way music lovers experience mobile music.”
 


 

 

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Datanomic’s holistic approach to delivering fit-for-purpose data and screening accuracy has enabled it to succeed in satisfying an array of European and North American blue chip clients. In 2008 the Company was able to add 45 new customers and grow its revenues by 200%. CEO Jonathan Pell expects 2009 to be a promising year as a rise in fraud related crime on the back of the credit crunch, together with increased regulation of financial services firms and their control systems, should drive substantial demand for Datanomic’s Anti-Money Laundering and Customer Screening solutions. Jonathan Pell notes: "The combination of proactive risk management and the growing burden of legislation and regulatory compliance reporting requires a granularity of detail and a holistic single view of an entity that has enabled Datanomic to buck the economic downturn, expand our market share, and continue to win significant new customers in our key markets."


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Brands are realising that customer engagement marketing is a more efficient and successful way in this environment to build brand affinity.  Many of these brands are turning to Eyeka as an innovative way to turn their audiences into advocates by leveraging a global community of over 40,000 creative agents. In 2008, Eyeka ran customer engagement campaigns for MTV, Philips, Corel, and Emporio Armani among others. CEO Francois Petavy is pushing ahead with full power as Eyeka’s offering demonstrates the value of talent generated content: “In such challenging times, brands need to re-think their investments, and this is a unique opportunity for innovative solutions such as Eyeka to make a difference.” (Francois Petavy)

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In under a year of commercial operation, new investment from GVC II, dezineforce (SaaS based engineering design software) signed 8 new customers including Arup, Hyde Engineering Ltd, Contour, and Gifford. Companies value dezineforce’s SaaS service solution versus licensing engineering design software for technical capability, collapsed design cycle times and greatly reduced cost - particularly important in the current economic environment. dezineforce’s CEO, Dr. Peter Collins notes, "Activity levels in key target sectors for us, such as aerospace and wind energy, remain strong. Customers have become more cost conscious - but this is actually an opportunity. Our cost message is opening doors that would not previously have opened to us.”

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In these times more than ever people around the world feel a need to connect with friends and family.  Sonico is one of the largest and fastest growing social networks aimed at the Hispanic community, reaching 34 million registered users. Sonico also provides low-cost phone services to millions of people calling to and from Spanish and Portuguese speaking countries, and offers premium virtual greeting cards and gifts.  CEO Rodrigo Teijeiro comments: “Our explosive growth of over 450% in the 19 months since launch as well as our continuous adaptation to the needs of our users is proving a unique advantage to capturing a market that has enormous potential.”

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Individuals are increasingly using free online classifieds as a way to turn assets and services into cash.  Growing at a CAGR of 177% since 2006, OLX has become one of the leading online classified companies in the world, particularly for non-English speaking countries.  CEO Fabrice Grinda has assembled a world-class team to take on market leaders Craigslist and eBay, and has accumulated a war chest of close to $14 million to acquire strategic sites to further drive this growth, adding: “We are excited by the opportunities the crisis is providing us to acquire companies at reasonable prices and buy advertising at large discounts.”

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Contact

DN Capital has raised its second fund, GVC II, and is actively seeking investment opportunities in early stage and growth equity software and digital media companies.  We would like to hear from you.  Please contact Tom or Christina at: tom@dncapital.com or christina@dncapital.com or (+44) 207 340 1600