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NXT Capital Venture Finance Provides $5.0 Million Venture Loan to Digital Chocolate
January 18, 2012

Woodside, CA – NXT Capital’s Venture Finance Group today announced the close of a $5.0 million venture loan to Digital Chocolate, Inc., a leader in social games across a growing set of gaming platforms.  This facility is being used to finance key growth initiatives.  Digital Chocolate is headquartered in San Mateo, CA and is backed by Sutter Hill Ventures, Intel Capital, Bridgescale, DN Capital, Outlook Ventures and Greenspring Associates.

Led by industry veteran, Trip Hawkins, founder and former CEO of Electronic Arts, Digital Chocolate is a leader in developing social games that can be played across numerous platforms, including Facebook, Google+, personal computers, consoles, mobile devices and tablet PCs. With a focus on developing original brands, Digital Chocolate has created more than 100 different award-winning games. Galaxy Life, the company’s most recent cross-platform release, challenges users to compete with friends and strangers in an all-out-for-control battle for the universe.

“Digital Chocolate has a tremendous reputation for developing social games that are high-quality and extremely engaging,” said Peter Fair, Investment Professional, NXT Capital Venture Finance. “In a gaming universe where 70% of games are free-to-play but users still demand console-like content, Digital Chocolate’s ability to create immersive game-play across multiple platforms is not only unparalleled, but a real competitive advantage.”

“We are very pleased to be working with the NXT team,” said Mark Richman, Digital Chocolate’s CFO. “NXT demonstrated a strong understanding of our business and the broader gaming industry, which enabled a seamless diligence process and a straightforward close. NXT structured a facility that complements our growth plans and existing capitalization structure.  They have proven to be a real partner and we look forward to extending our relationship over time.”

ABOUT NXT CAPITAL VENTURE FINANCE:

NXT Capital Venture Finance is a newly formed business committed to serving entrepreneurs by providing less dilutive, more flexible forms of capital. With offices in Boston and Silicon Valley, NXT Capital Venture Finance provides senior and subordinated term loans in the $1 to $20 million range to emerging growth companies backed by venture capital and private equity firms, particularly those in the technology and life science sectors. Target clients range from pre-revenue companies led by dedicated entrepreneurs to late-stage, proven businesses seeking more efficient growth capital. For more information, see www.nxtcapital.com/venture-finance.

ABOUT NXT CAPITAL:

NXT Capital provides structured financing solutions to middle-market and emerging growth companies, as well as real estate investors, through its Corporate Finance, Venture Finance and Real Estate Finance groups. Based in Chicago with offices in New York, Atlanta, Boston, Dallas, Newport Beach and Silicon Valley, NXT Capital targets senior financing opportunities up to $150 million with a hold size up to $50 million. See www.nxtcapital.com for more information.

ABOUT DIGITAL CHOCOLATE:

Digital Chocolate has rapidly emerged as a leader in cross-platform social games. Best known for Zombie Lane, Army Attack, Millionaire City and MMA Pro Fighter, Digital Chocolate has been the fastest-growing maker of Facebook social games with virtual goods in 2010 and led all software companies in App Store downloads in 2009. Focused on original brands and technology for a wide variety of platforms, the company has made over 100 different award-winning games and works with 200 leading web and mobile channel partners in 80 countries. Digital Chocolate has operations in San Mateo, Seattle, Helsinki, Barcelona, St. Petersburg, Bangalore and Mexico. For more information, please visit www.digitalchocolate.com.