SOURCE: Digital Orchid

February 13, 2006 07:00 ET

Digital Orchid Closes $6 Million Series B Round

Accelerating Mobile Technology and Distribution Growth Globally

SAN DIEGO, CA -- (MARKET WIRE) -- February 13, 2006 -- Digital Orchid, the industry's leading technology innovator in the development, management, and distribution of branded real-time wireless applications and mobile content platforms, today announced that it has secured $6M in new venture financing led by Shepherd Ventures with participation by NeoCarta Ventures. The $6 million Series B funds will be used to accelerate global growth.

Digital Orchid has developed a patent pending technology that automates the building and distribution of wireless content on cellular phones. Digital Orchid's technology supports mobile content purchases on over fifty carrier and operator vending machines worldwide. Using an automated platform that eliminates the traditional manual processes of building, porting, distribution and syndication of mobile applications, Digital Orchid has leveraged the technology advantage to launch more than sixty well-known consumer brands. Digital Orchid's brands include NASCAR.COM, MLB.COM, ESPN, NHL, NHRA, CHAMPCAR, WORLD RALLY CHAMPIONSHIP, AMA and many other sports and entertainment brands in Latin America, Europe and Asia.

"Digital Orchid is excited to have two prominent venture capital firms support our global expansion. With this investment, we will accelerate our platform technology adoption by carriers and grow our brand portfolio, which we believe is the strongest in the industry. Big consumer brands know that we are the leaders in monetizing digital media assets and they put their trust in our ability to build long-term profitable revenue streams. Coupled with a platform technology that delivers scalable distribution and higher profitability we are confident in our ability to disrupt the traditional business models used by mobile media companies," said Daniel Daou, Founder and CEO of Digital Orchid.

In addition to a leading position in the United States, Digital Orchid has been very successful in reaching consumers globally. Over forty percent of Digital Orchid subscriber downloads in 2005 came from consumers who live outside of the United States. As part of the expansion with the Series B investment, Digital Orchid will be adding resources to increase adoption of the technology and content to new overseas markets, which represent an estimated $80 billion opportunity in 2006.

"Digital Orchid's technology platform and distribution capability are world class. Combined with a portfolio of many of the most prestigious brands in the world, we believe that Digital Orchid has a strategy that gives them a significant competitive advantage," said Tom Siegel, Managing Director of Shepherd Ventures. In conjunction with the Series B financing, Tom Siegel has joined the Board of Directors.

"With the explosive growth of 3G networks and handsets with faster processing capability, we believe that Digital Orchid is best positioned to capitalize on the huge consumer demand for mobile content. We believe that strong management and superior technology will enable Digital Orchid to be the market leader," said Paul Hsu, Principal of NeoCarta Ventures. Paul Hsu has also joined the Board of Directors.

About Digital Orchid:

Digital Orchid, a San Diego-based technology company, provides exclusive wireless branded applications to the global community. Digital Orchid leverages its patent pending platforms to distribute real time dynamic and interactive applications accessible through all new handsets. Based on exclusive content agreements and experience with all major carriers. Digital Orchid's partners include major brands in sports, entertainment, broadcast media and gaming. Digital Orchid's investors include Shepherd Ventures, NeoCarta Ventures, and Qualcomm. For further information, please visit http://www.digitalorchid.com.

About Shepherd Ventures:

Shepherd Ventures is a leading venture capital firm investing in early to later stage information technology and life science investments. The firm specializes on investments in wireless, software, technology infrastructure, digital media, medical devices and biotechnology. Headquartered in San Diego, California, the firm focuses on investments in Southern California. Shepherd Ventures' Web site address is: http://www.shepherdventures.com

About NeoCarta Ventures:

NeoCarta Ventures is a leading venture capital firm specializing in early to mid-stage technology investments. The firm focuses on investments in IT infrastructure, software, hardware, networking, media and wireless. With offices in San Francisco and Boston, NeoCarta partners' backgrounds include senior investment experience with outstanding track records at GE Capital, Intel Capital, Thompson and NBC. NeoCarta works closely with entrepreneurs and actively adds value by providing strategic guidance, team-building skills, industry knowledge and operating expertise. With NeoCarta's unique mix of financial, operational and technical expertise, the firm is able to add value at all stages in a company's development. NeoCarta's Web site address is: http://www.neocarta.com

Contact Information

  • PR Contact For Digital Orchid:
    Sarah Miller or Megan Schwartz
    Axis Marketing & PR
    Tel: 323 653.7800
    Email: Email Contact
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