WordStream Launches with $4M in Series A from Sigma Partners

Introduces Groundbreaking Productivity Solution for Search Marketers

BOSTON – January 28, 2009 – WordStream®, Inc., a provider of productivity tools for paid and natural search engine marketing, has secured a $4 million Series A round of financing from Sigma Partners. WordStream has also appointed Rob Adler as its President and CEO and added Paul Flanagan from Sigma Partners to its Board of Directors.

Adler was previously co-founder and President of CCBN, a pioneer in online financial services that was acquired by Thomson Financial in 2004 for about $160 million. Sigma's Flanagan has a successful track record helping startup companies go public and build market capitalizations over $1 billion.

WordStream was founded in 2008 by Larry Kim, a long-time successful search marketer for major technology companies, now Vice President, Marketing & Products at WordStream. Kim played an instrumental role in the development of the company's groundbreaking solution for optimizing search engine marketing campaigns. An all-new online search engine marketing (SEM) and search engine optimization (SEO) application, WordStream dramatically simplifies the labor-intensive work done by successful search marketers, ultimately allowing for improved productivity, relevance and value from search marketing campaigns.

"The demand for search engine marketing services is continuing to grow at a rapid clip because it works," said Paul Flanagan, managing director at Sigma Partners. "However, many organizations have yet to embrace search, have been frustrated by mixed results, or find managing campaigns labor intensive. WordStream has built software that can effectively serve the ever-growing and solution-hungry search marketing community."

WordStream develops easy-to-use tools that enhance the productivity of individuals and agencies managing labor-intensive search campaigns. The WordStream solution is an affordable software-as-a-service (SaaS) application that enables marketers to quickly and easily reduce cost-per-click, increase Quality Score on Google AdWords, and improve conversion rates.

"Because search can be difficult to do well, there is a perception that it is a 'black art' that requires specialized skills – the reality is that creating and optimizing effective search campaigns is time consuming," said Adler. "WordStream is committed to dramatically improving the efficiency and effectiveness of search marketers and the campaigns they manage."

About WordStream

A provider of search marketing productivity tools for paid and natural search engine marketing, WordStream is committed to simplifying the development and optimization of highly effective search marketing campaigns. Built by search marketers for search marketers, WordStream offers a fully-featured software application with innovative solutions to all facets of search marketing including keyword research, keyword grouping, keyword suggestion, Web analytics, information architecture, and more. Using WordStream, search marketers can realize the full potential of their search marketing campaigns. WordStream is a member of the Search Engine Marketing Professionals Organization (SEMPO).

About Sigma Partners

Founded in 1984, Sigma Partners is a leading early-stage venture capital firm. The Sigma team uses their deep operational experience to provide entrepreneurs with practical strategic counsel through every phase of company growth. With over $2 billion under management and bicoastal offices, Sigma invests in innovative technology startups across the United States. The team is currently investing Sigma Fund 8, a $500 million fund raised in 2007. Some of the market leading companies in which Sigma has invested include Atria, Cascade, Clarify, EqualLogic, Internet Security Systems, KLA-Tencor, m-Qube, Octel, Topio, VeriFone, Vermeer, Vignette and Virtusa.