20 February 2009
Finding finance to grow is one of the hardest challenges any small or medium size business will face and the current financial situation isn’t making that process any easier. However, one company has bucked this depressing trend and achieved just that. fiNETra, based in Wellington, has been successful in raising £125,000 from SWAIN investors.
SWAIN (South West Angel and Investor Network) is a business angel network, connecting exciting, high grow companies with private investors. Philip Tellwright Managing Director for SWAIN was delighted at the news saying “due to banks reducing lending, we are frequently seeing high quality investment opportunities and I am delighted that fiNETra have managed to buck the depressing trend and succeed in bringing hope to this current climate.”
fiNETra have developed a low cost, TV quality, “live video streaming system” that allows every type of organisation to enjoy the benefits that live images can bring to their websites. For a start up company, fiNETra has already secured orders from ITV, Somerset County Council, The Minack Theatre and Paignton Zoo. In line with their global ambitions, fiNETra have also recently adapted intermittent images screened by The World Land Trust from the jungle in Ecuador into a totally live feed featuring humming birds and toucans. When asked what makes his product so marketable, Mark Welch, Chief Executive Officer and founder of fiNETra said, “We are offering something different that will attract more people to a clients’ website. At the moment it is tough to get a business noticed. Having live video streaming allows a global audience to see exactly what’s happening, as it happens. For example, when live video streaming images of a new baby rhino at Paignton Zoo were shown on the BBC website, visitors peaked at 90,000 a day. As a direct result, footfall to the zoo increased by 40%.”
Describing the process leading up to this investment, Mark explained, “Times were difficult for me and my partner. I worked without pay for two years but it was a gamble and as they say, nothing ventured, nothing gained. SWAIN did an excellent job and succeeded in putting me in front of the right people where other angel networks had struggled.”
Bruce Colley, Investment Director for SWAIN added “We are delighted that Mark has been successful in convincing a number of investors to come together to make a deal happen. The £125K is made up of three investors each putting in £25K, a further two £12,500 each and the remaining £25K from three investors who have formed a syndicate to enable them to spread their investment capacity. The deal illustrates the point that business angel investors come from a wide range of backgrounds and with a significant variation in the amount available to invest. Many of our investments involve three or four investors putting in £25K to £50K each and some will see a single investor putting in £250K. The private investor is becoming a significant player in terms of helping to finance south-west businesses and we are only scratching the surface in terms of the potential. We are delighted to talk to any potential investor about what is involved.” He added “It is also worth noting that the banks have played their part, with HSBC putting in £50K of unsecured loan on the basis that investors are in effect de-risking the investment”. Intellectual property and commercial advice were provided by Edmund Probert of Foot Anstey solicitors.