SOURCE: Market Insight Corporation

October 17, 2005 09:00 ET

Market Insight Closes Series A Financing

WaldenVC Backs Real-Time Market Research Startup

PALO ALTO, CA -- (MARKET WIRE) -- October 17, 2005 -- Market Insight Corporation, an online market intelligence firm, today announced it has received $1.25 million in Series A financing from WaldenVC, a San Francisco-based venture capital firm. Founded in 2003, Market Insight provides companies with the ability to test product concepts in real-time and apply the results to a wide range of product and marketing decisions.

"We invest in companies that change the rules, and Market Insight definitely fits this description," said Phil Sanderson, a general partner at WaldenVC. "With its strong team, blue-chip customer list and breakthrough technology, Market insight is going to change the face of market research."

Major Fortune 500 corporations leverage Market Insight's solution for timely, accurate and detailed consumer data. The company collects information from consumers via a web-based product advisor -- www.myproductadvisor.com -- that helps consumers find different products or services. My Product Advisor.com uses a patent-pending methodology based on Bayesian inference to provide consumers with free, customized, and unbiased product recommendations for a range of products from cars and PDAs to digital cameras and TVs. Consumers anonymously answer a self-selected set of optional questions to receive the set of recommended products. These answers are then compiled for use by Market Insight's manufacturing, service and retail clients.

Market Insight's advisor data differs from the information collected from panels or focus groups in several respects. First, Market Insight's users are actively engaged in the process of buying products. In addition, they are not paid for their responses and are not professional survey respondents. Moreover, Market Insight's data sources are always-on, collecting information from thousands of consumers daily, which means the data is always fresh and does not have the collection delays of weeks (or even months) that traditional panels or surveys require.

With this data, Market Insight's customers can analyze and forecast a wide variety of product and market planning situations, thereby driving toward better architecture, portfolio, design, pricing and marketing decisions. Retailers use Market Insight's advisor technology to accelerate consumer conversions, increase customer satisfaction and decrease returns.

Led by CEO and co-founder Richard Smallwood, a Stanford consulting professor and veteran entrepreneur, Market Insight developed its methodology through Smallwood's collaboration with Market Insight's Chairman and co-founder Vincent Barabba, a former General Manager of Corporate Strategy and Knowledge Development at GM. A world-renowned expert in market research, Barabba hired Smallwood to build an auto advisor for GM that could collect consumer preference data in real time. The duo then expanded upon that idea for their new venture.

"The concept and values behind Market Insight come from years of working on methods for integrating the 'voice of the consumer' into business decisions," said Smallwood. "We at Market Insight are committed to helping our customers make better pricing, design, and marketing decisions through applying next-generation market research techniques to real business problems."

About Market Insight

Based in Palo Alto, Calif., Market Insight offers its clients always-on market intelligence using an innovative patent-pending method for collecting needs and preferences from actual shoppers. Market Insight translates this consumer data into market projections that give its clients a real-world perspective of pricing, design, and marketing decisions in today's highly competitive markets. For more information about Market Insight, please visit www.marketinsightcorp.com.

About WaldenVC

WaldenVC is a venture capital firm that focuses on investments in digital media companies. Additional focus areas include software as a service and information services. With over $400 million under management, WaldenVC invests across all stages of growth, from startups to public corporations. Leveraging its operating experience, corporate investors, investment banking expertise and worldwide network, WaldenVC has consistently generated above-average returns over its thirty-one year history. Additional information can be found at www.waldenvc.com.

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