Cambrian House and Spencer Trask Announce Transaction

Agreement Focuses on Emerging Trends in Online Collaboration
NEW YORK--(Business Wire)--
Cambrian House today announced an agreement where it sold certain
assets to Spencer Trask Collaborative Venture Partners (STCVP). STCVP,
a member firm of Spencer Trask & Co, has been working for the past
year researching the emerging trends in collaboration to support the
acceleration of relevant innovation for today's pressing social and
economic problems.

"The Cambrian House crowdsourcing community has attracted
50,000-plus smart, creative people who work together to turn ideas
into real, successful businesses," said Michael J. Sikorsky, chief
executive officer of Cambrian House.

Doug Hewson, president of STCVP, said they were impressed with
Cambrian House's unique methodology and algorithms with its
Chaordix(TM) suite - to harness the collective problem-solving and
creativity capabilities of the Internet in identifying novel ideas
suitable for venture funding and support regardless of geographic
location.

"We are working to develop the next logical step in the evolution
and growing sophistication of online collaboration by creating virtual
environments where innovation creation can occur through the wisdom
and input of a very broad community of experts and problem
stakeholders," Hewson said. "It mirrors what we already know in
computing; that parallel processing and cloud computing can greatly
expand the reach, brainpower and thinking needed for problem solving."

Since launching in 2006, Cambrian House quickly became recognized
in crowdsourcing theory and technology. Simply put, crowdsourcing is
the act of taking a task traditionally performed by an employee or
contractor, and outsourcing it to a generally large group of people,
in the form of an open call. The term has become popular with business
authors and journalists as shorthand for the trend of leveraging the
mass collaboration enabled by Web 2.0 technologies to achieve business
goals.

The sale to Spencer Trask is the natural next step in Cambrian
House's Chaordix(TM) strategy from hosting and developing a mass
crowdsourcing community itself, to instead move behind the scenes to
support partner communities on the Chaordix(TM) crowdsourcing
platform. Cambrian House chose Spencer Trask as an opportune new home
for its community members.

After the transition of members to Spencer Trask, the Cambrian
House crowd sourcing community will no longer be active. Cambrian
House will continue to develop its portfolio companies, including
Gwabs(TM), Greedy or Needy(TM), and the Chaordix(TM) crowdsourcing
platform.

About Cambrian House

Launched in 2006, Cambrian House began as a crowdsourcing
community using wisdom of crowds based approach to discover new
business and technology ideas. Today, Cambrian House focuses on
developing companies which emerged from its crowdsourced discoveries.
The Cambrian House portfolio includes Gwabs(TM), Greedy or Needy(TM),
FilmRiot(TM) and the Chaordix(TM) crowdsourcing platform. For more
information, please visit us at www.cambrianhouse.com.

About Spencer Trask

Spencer Trask is a private equity firm that transforms bright
ideas into great companies. Through a collaborative network of
business leaders, domain experts and co-investors, Spencer Trask
builds market-leading companies with a sustainable competitive
advantage. Spencer Trask Collaborative Venture Partners, LLC, will
expand upon Spencer Trask's current approach to business by harnessing
the power of social media and mass collaboration to reinvent how seed
venture capital is invested in innovative startups. For more
information, please visit us at www.spencertrask.com.

The Lee Strategy Group, Inc.
James Lee, 310-229-5771
jlee@leestrategy.com

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