SHANGHAI, China, Dec. 26 /Xinhua-PRNewswire/ -- Digital Media Group Company Limited (“DMG”), China’s leading operator of digital media networks inside subway systems, today announced that it has closed its Series B round of funding from four investors. The round was led by Oak Investment Partners and included Sierra Ventures, NIF SMBC Ventures and Gobi Partners. Gobi, NTT DoCoMo and Dentsu participated in DMG’s Series A round in early 2005.
“This international syndicate brings together some of the world’s biggest and most experienced venture capital firms,” said James Lim, Chief Executive Officer of DMG. “With this new capital injection, we will continue to upgrade and deliver the best services to the metro authorities and their passengers.”
DMG pioneered the application of information technologies in out-of-home media and developed a patented PIDS (Passenger Information and Direction System) that can provide service information and entertainment to enhance the overall passenger experience within subway systems. “We are excited to be working with DMG. The Company operates at the intersection of two mega-trends in China: massive subway construction and rapid growth in digital-out-of-home (DOOH) advertising,” said Ren Riley, partner of Oak.
DMG delivers information and advertising through thousands of on-platform and in-car flat panel displays to millions of passengers a day in the biggest Chinese cities including Chongqing, Hong Kong, Nanjing, Shanghai, Shenzhen, and Tianjin. “DMG’s platform helps advertisers reach out to China’s massive consumer population in an effective and interactive manner,” said Ben Yu, partner of Sierra.
“DMG is a next generation DOOH media company with unique competitive advantages,” said Wai Kit Lau, Chairman of DMG and partner of Gobi. “Its advanced technology and deep relationships with the metro authorities create significant barriers to entry.”
About Digital Media Group
Digital Media Group is China’s leading operator of digital media networks inside subway systems. Headquartered in Shanghai, DMG installed China’s first multimedia passenger information display system in the Shanghai subway in 2003. The system provides updated train and emergency information along with information and advertising to passengers, helping subway authorities to operate more effectively. DMG now has offices in Hong Kong, Shanghai, Beijing, Tianjin, Nanjing, Shenzhen and Chongqing. There are over 13,000 flat panel displays in DMG’s network reaching more than 28 million people per week. The network is expected to double in two years expanding to cities all around Asia. For more information, please visit http://www.DMGtv.com .
About Oak Investment Partners
Oak Investment Partners is a multi-stage venture capital firm with a total of $8.4 billion in committed capital. The primary investment focus is on high growth opportunities in communications, information technology, new media, financial services information technology, healthcare services and consumer retail. Over a 28-year history, Oak has achieved a strong track record as a stage-independent investor funding more than 435 companies at key points in their lifecycle. Oak has been involved in the formation of companies, funded spinouts of operating divisions and technology assets, and provided growth equity to mid- and late-stage private businesses and to public companies through PIPE investments. For more information, please visit http://www.OakVC.com .
About Sierra Ventures
Sierra Ventures, founded in 1982, is a privately held venture capital firm focused on investments across all areas of the Information Technology sector from semiconductors to enterprise software. Sierra Ventures has managed nine venture capital partnerships and currently has more than $1.5 billion of capital under management. Some of the firm’s investments include 360Commerce (acquired by Oracle), Active Software (acquired by WebMethods), AmeriGroup (AGP), Centex (acquired by WorldCom), ConvergeNet (acquired by Dell), FatBrain (acquired by Barnes & Noble), Frontbridge (acquired by Microsoft), Healtheon (merged with WebMD), Interact Commerce (acquired by Sage), Intuit (INTU), Micromuse (acquired by IBM), OnAssignment (ASGN), OnLink (acquired by Siebel), Quinta (acquired by Seagate), StrataCom (acquired by Cisco), Sychip (acquired by Murata Manufacturing) and Teradata (acquired by NCR). More information is available at http://www.sierraventures.com .
About NIF SMBC Ventures
On October 1, 2005, NIF Ventures (Daiwa Securities Group) and SMBC Capital (Sumitomo Mitsui Financial Group) merged to form NIF SMBC Ventures. We believe synergy will be created through the integration of the respective advantages and business characteristics of the two companies, which held secure positions in the venture capital industry. NIF Ventures was established in 1982 as a venture capital firm affiliated with Daiwa Securities, and it has contributed to the creation of a number of listed companies through the establishment and operation of funds which fit the market needs and managerial support of investees. Similarly, SMBC Capital, with the network and financial resources of the Sumitomo Mitsui Financial Group, has shown skill in finding great opportunities and has invested in various unlisted companies in an investment framework that includes expertise in corporate transactions and the ability to undertake business research. NIF SMBC Ventures, the newly-created venture capital company, formed by integrating these two precursors, will not only secure a comprehensive business network, but also establish an outstanding service structure that integrates expertise in the entire business processes of finding investment targets, listing their stocks, and ultimately carrying out mergers and acquisitions. For more information, please visit http://www.NIFSMBC.co.jp .
About Gobi Partners
Gobi Partners is a Shanghai-based venture capital firm focused on early stage investments in China’s digital media sector. Gobi defines digital media as a new form of communication emerging from the convergence in telecommunications, media and technology. Gobi invests in companies that are pushing the frontier, integrating gaps or enabling consolidation within the digital media value chain. The Gobi Fund includes IBM, NTT DoCoMo, Sierra Ventures, McGraw-Hill and Steamboat Ventures (the VC arm of Disney) as investors. For more information, please visit http://www.GobiVC.com .
