Sunday March 13, 08:09 AM Eastern time
Company Press Release
SOURCE:Convergence Mediagroup
Convergence Mediagroup Secures First-Round Financing From THCG Venture Partners
Funding to Fuel Worldwide Growth Plans, Will Allow Convergence Mediagroup to Strengthen Position as Premier Youth E-Services Provider
SAN FRANCISCO, March 13 /PRNewswire/ -- Convergence Mediagroup today announced 5 million in first-round financing led by THCG Venture Partners (Nasdaq: THCG). This capital support will accelerate Convergence Mediagroup's emergence as the leader in youth-focused e-services for marketers and brands worldwide. With several of the world's blue chip consumer brands among its client list, Convergence Mediagroup will now have the resources to extend its presence globally.
The company plans to bring its revolutionary suite of e-services to bear on the hottest demographic segment in half a century -- 15-24 year olds. This demographic segment is a subset of Generation Y -- and consists of 68 million individuals, the largest generation since the baby boomers. Their combined buying power is enormous, boasting a disposable income of 302.4 billion. In 2000 alone, 16-22 year olds are projected to spend roughly 4.5 billion according to recent Forrester Research, and e-commerce companies are flocking to hook this brand-savvy bunch early with the goal of converting them to lifetime customers.
While traditional marketers -- and marketing service providers -- struggle to reach Generation Y, Convergence Mediagroup has developed and refined a suite of innovative Internet-based youth market e-services. They include:
-- eExperiences: Interactive brand events and entertainment to facilitate
customer participation and e-commerce
-- eFeedback: Research and data analysis to evaluate the effectiveness of
marketing by initiating dialogue and 1:1 communication between customer
and brand
-- ePartnership: An Internet-driven business-to-business network that
aligns youth marketers with promotional and business development
partners
-- eSchools: A service that leverages Convergence Mediagroup's
unparalleled reach and credibility to develop grassroots in-school
programs for major brands The cornerstone of the Convergence Mediagroup's product offerings is the
eExperience, a fully interactive e-commerce event structured to deeply involve the young consumer, with the brand as a central element. eExperiences create a level of immersion that integrate the brand into the life of the young consumer. Given the current saturation of advertising messages young consumers face, eExperiences have been a powerful new vehicle to reach and involve Generation Y through the medium of their choice -- the Internet.
"The Convergence Mediagroup e-services model gives brands a substantial advantage in the competitive teen and young adult marketplace," said Azi Tabachnik, CEO of Convergence Mediagroup. "eExperiences provide a quantifiable return on investment and generate meaningful dialogue between the brand and the youth consumers who buy their products. Because our e-services are unique, we've been extremely successful in developing long-term relationships with major clients. We now have the resources to expand and scale our business worldwide."
THCG will provide Convergence Mediagroup with strategic, operations, and brand-building counsel, in addition to capital. Ed Tedeschi, Co-Head of THCG Venture Development said, "Convergence Mediagroup provides the kind of in-depth branding experiences for young consumers that every marketer dreams about. Convergence eExperiences engage young consumers for long periods of time, literally making the brand a part of their lives. The expertise, talent, and innovation at Convergence Mediagroup are extraordinary. Convergence Mediagroup will have a major impact on services to youth marketers."
Experienced Advertising, Media and Technical Management -- CEO Azi Tabachnik has been instrumental in packaging and positioning
some of the world's largest consumer brands for the youth market
-- most recently through Internet based experiential marketing, viral
marketing and alliance building.
-- Creative Vice President Sam Bayer is widely considered the top
youth-focused film director in the world, and has directed several
award-winning music videos and commercials.
-- Executive Producer Brandon Paine has spent his entire career in
Internet media producing consumer content, advertising and e-commerce
projects -- for several of the world's leading consumer brands. About Convergence MediaGroup, Inc.
Convergence Mediagroup leverages the Internet to revolutionize the way
brands are marketed to youth. Founded in 1999, Convergence Mediagroup has quickly been recognized as the industry leader in youth-focused e-services and now counts many of the world's most prestigious consumer brands among its client list. A private company, funded in part by THCG Venture Partners, Convergence Mediagroup is headquartered in San Francisco. The company's website is located at www.cmg-us.com.
About THCG
THCG is a global active Internet incubation firm that provides venture development, venture banking and venture funding products and services. THCG's mission is to build dominant companies by partnering with leading Internet entrepreneurs and traditional brick and mortar companies migrating to the Internet. THCG has partnered with a portfolio of Internet-related companies, including Global Credit Services, Inc. (www.globalcreditservices.com), IT Utility, Inc. (www.itutility.com), and Test University, Inc. THCG also has equity interests in more than 10 additional Internet-related companies, including ETRAVNET.COM, Inc. ( www.travnet.com), iBeauty.com (www.ibeauty.com), Interleaf, Inc. (www.interleaf.com), LogNet Systems Inc. (www.lognet.co.il), Passport New Media, Inc. (www.yourownworld.com), TechOnLine, Inc. (www.techonline.com) RealTimeImage Inc. (www.realtimeimage.com), SoftWatch Ltd. (www.softwatch.com), SunShine Media Corporation (www.bikini.com) and webMethods, Inc. (www.webmethods.com). THCG's web site is located at www.thcg.com.
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Contact:
Azi Tabachnik, azi@cmg-us.com, or Brandon Paine,
brandon@cmg-us.com, both of Convergence Mediagroup, 415-981-9090
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