The Company and Our Investment

Founded in 2003, LOVEFiLM International Limited is one of Europe's leading home entertainment companies. It is one of the most respected entertainment and film sites in Europe. It was the first company to deliver online-DVD to the mass market in the UK and other key markets in Europe. The Company's growth has been impressively fast, helped by innovative new offerings, as well as acquisitions. Since launch, it has entered into a combination of ten mergers and acquisitions across Europe, demonstrating its skill in picking the right market and the right opportunity.

In February 2008, LOVEFiLM agreed a deal with Amazon's DVD rental business, making LoveFilm Europe's leading online DVD rental and movie download company, with nearly 900,000 active household subscribers and over 20% of the total DVD rental market. The Company has been nominated for or won numerous awards and there have been press commenting valuations in the region of £200 million.

The Company showed early promise of good returns and expansion in a sector
familiar to the Ventures team. The innovative idea behind the business, ambitious business development plans and company expansions have continued to impress.

"The question is not so much where people get films from but what they want to watch. This new, bigger customer base will give us an even better position from which to build LOVEFiLM as the best place for customers to find film."

Simon Calver, CEO, LOVEFiLM