2010 has been a very busy year at DN, with three new investments announced, three exits and a new addition to the team. Our portfolio companies have also been widely featured in the media.

Welcome on board!

In August, DN Capital closed an investment in Windeln.de, a specialty ecommerce site in Germany selling baby care products (like Diapers.com in the US). Just launched, the service offers diaper products as well as baby food and formula, bath and skin care and a large product range around feeding and nursing. A dedicated "bio baby" category addresses the increasing demand for organic baby products.

In September, DN led a ?7 million growth investment in MisterSpex, Germany?s largest online eyewear retailer. Mister Spex has been selling glasses, contact lenses and sunglasses on the internet since 2008 and is already the clear market leader. The company will use the capital from this investment to reinforce its growth in Germany and to support international expansion.

DN is also pleased to announce that it has made an investment in Seedcamp II, the second fund from Europe?s leading micro-seed Fund for start-ups from across the continent. DN would like to congratulate the Seedcamp team on the close of its second fund and looks forward to working with Seedcamp, its portfolio and its network in the coming years.

Karen von Grabowiecki recently completed her Masters in Finance at the University of Cambridge. Prior to that, she was an Associate at HIG Capital focusing on deal sourcing of growth equity opportunities.

New Developments

DN portfolio company Shazam has been making headlines recently with several announcements in recent months:

• Won Best Management Team at the Sunday Times, Techtrack 100 Awards
• Won Guardian TM 100 Award for the #1 hottest tech company in the UK
• Promotion partnerships with Take That and dance legends Faithless
• Deal announced with Syfy to include television advertising and exclusive content for Shazam users

We are proud of the recognition Shazam is achieving and excited by the potential of some of the new directions they are taking.

Digital Chocolate has made some impressive progress in social games in the past year. Since launch in May, its Millionaire City game rocketed to #8 application out of more than 500,000 of them on Facebook. This has put them as the #6 Facebook game developer on Facebook, within strides of Playdom which was acquired by Disney for more than $500 million in July. Being the fastest growing among the top 10 social game developers, Digital Chocolate has an enormous potential in the future.

Endeca has also made exciting announcements in recent weeks:

• Latitude, Endeca?s leading edge business analytics product was launched, combining Business Intelligence software with agile delivery to improve decision making in the enterprise.
• Endeca also announced that the British Transport Police, the national police service for Britain?s railways, has chosen Endeca to enhance its transit intelligence and reporting.

These development highlight the continued progress of the Company and the recognition it is receiving:

• 42 of the top 100 on-line retailers now use Endeca, including Wal-Mart, Target, and Home Depot
• According to CIO magazine, ?Endeca is fast becoming the Google of enterprise search for e-commerce sites.?

DN is pleased to be one of the earliest investors in Endeca and to have been instrumental in its early European traction. Endeca has beaten its budget every quarter this year and has consistently raised its targets for this year?s revenue, profits and cash flow.

Exits

In August, DN Capital sold its stake in OLX to Naspers. OLX provides a platform for free online classifieds in a large number of important global markets. Strategic buyer Naspers is a South African media company which owns stakes in a number of digital properties.

Lagan technologies was acquired by Kana Software in October. Lagan is the global leader in government to citizen (G2C) technology. The resulting partnership will create a new global leader in service experience management solutions. The combined company will add a strong focus on government-to-citizen capabilities to Kana?s existing enterprise business.

Kaidara, a provider of customer service software applications for knowledge management, was acquired by Servigistics in April. The acquisition cements a long term partnership between Kaidara and Servigistics and Kaidara?s leading-edge solutions will now be brought to the market as the Service Knowledge Management component of Servigistics' Service Lifecycle Management (SLM) suite.

About DN Capital

DN Capital, with offices in London and Palo Alto, is a growth capital and early stage investor focused on software and digital media companies. DN Capital's objective is to identify, invest in and actively support companies with the potential to be global leaders. Portfolio companies include Shazam Entertainment, Endeca Technologies, Datanomic, Familybuilder, OLX, Digital Chocolate, Tbricks, Mister Spex and Windeln. The professionals at DN Capital bring over 50 years of private equity experience to their investments, and actively work with portfolio companies to steward their growth through the various stages of development.