Case Studies of venture capital
Case Studies Catalyst have had over 11 years experience in helping companies grow and find venture capital funding. Please contact us if you have any questions regarding our case studies or would like to discuss how we work with companies as a strategic funding partner.
1. CASE CASE STUDY: STUDY: Integral Mobile Data Data
Integral Mobile Data Ltd (IMD) is a mobile data management company, IMD’s first product is
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capable of integrating and transferring text, multi-media data (such as imagery), RFID, biometrics, bar code, GPS and web-based information, in realtime or in batch using modems. Platform and bearer independent, it integrates with a range of new or legacy back office systems, enabling automatic, two-way up-date of databases. The IMD team had developed the technology while working for NVP. NCP did not view the technology as core and the team decided to buy out the technology and spin it out as a separate separate company. Initially they had funded the business as using their own resources and DTi grants.
Our first challenge was to develop a business plan and funding strategy with team that maximised our chances of raising the funding required. We then began a marketing campaign that involved talking to a wide range of private investors and angel groups. From this activity were able to introduce an individual investor who wanted to play an active role in the business. This strengthening of the management team was crucial in
deciding to seek external funding. In October we we decided to approach selected institutions to raise the funding required to growth the business. Result
We raised £500,000 from Finance wales. The company moved to Wales and in early 2007 was acquired by OLM Group, the UK’s largest independent supplier of information solutions for children’s and adult services, who were quick to recognise the strength of IMD’s products and services and its excellent competitive position.
2. CASE STUDY: BlueU
We were extremely interested in the computer based training space because of our experience of training professional staff in our previous lives. Ian had created of a new web based learning concept. Ian put together a small team financed by his own resources. Now he needed resources to create content and develop a market. Catalyst’s Role
We started working with CEO Ian Claque to develop a business and financing plan for the business that would give us the best chance of raising funding. Crucial to this process was: The focus and positioning of the business; Analysing the size of the market; Identifying the right pricing level; Developing an IP strategy. Result:
We initially closed a strategic funding round of £1,000,000 from private investors through a private placement. Six months later a further £1,000,000 was raised from Jupiter Fund Managers. Development of the business proceeded apace. The Company had already signed contracts with over 100 corporate clients, including – Compaq Computer, BP, Toshiba, Dresdner Bank, Rabobank International, Legal & General, BBP, tempz.com and Aberdeen City Council. BlueU was able to demonstrate key advantages over other forms of training, including: proven effectiveness on retention and completion rates; substantial cost savings; and interactivity, flexibility, speed and convenience. On the basis of this success a further funding was closed a year later when Net Partners invested £2.5 million.
3. CASE STUDY: Firebrand Media
The team had devised a new advertising medium in convenience stores. The founder Dipo Olewayo was a retail consultant at McKinsey who had carefully studied the convenience store sector in the UK and was convinced that a new model of in-store advertising using digital screens carefully placed at the checkout would be successful. Dipo had managed to secure a pilot system in a convenience store franchise in the North-East of England. This franchise had subsequently been bought by Sainsbury’s. Catalyst’s Role
Our first task was to work with the management team to develop a business plan and corporate finance strategy that would give us the best chance of raising funding. Crucial to this process was: The focus and positioning of the business; Strengthening the management team to include a leading industry figure as Chairman; Developing the right advertising pricing model;
Identifying New Estates to be acquired; Assessing the level of funding required. Result
We initially closed a strategic funding round of £500,000 from a small privately owned venture capital fund. A further £500,000 was was raised from private investors a year later. Firebrand is now installed in 250 Sainsbury’s convenience stores including the flagship store in Sainsbury’s HQ. Firebrand is now a leading provider of in-store digital advertising and is in negotiations with a number of major retail brands to expand into their franchise f ranchise..