3rd July 2006
INVESTING FOR GROWTH: A NORTH WEST SUCCESS STORY
At the latest TEChINVEST Investor Club meeting, business angels past, present and future had an opportunity to hear first-hand of the difference their investment can make, with an update on the growth of voice-recording telephony experts, Veritape, since its initial backing by TEChINVEST angels.
Veritape was originally founded in 1998, but experienced slow progress in the early stages, by 2002/3 sales were still quite low. The two founders then approached TEChINVEST, looking for funding to help kick-start the business and received offers of support from a syndicate of three private investors and the North West Equity Fund (NWEF). The company chose the business angels to provide the investment and expertise they felt they needed.
After the first year, one of the investor directors was invited to assume the role of company Chairman and the business remodelled itself from a 'purchase' to a 'rental' offering for any companies or organisations which needed to monitor and record its business calls. This change facilitated the customer decision, as there was no upfront capital expenditure required at installation, and no minimum contract required for the Veritape service.
Three years on the company expects to announce cash positive results from the end of 2006. Staff numbers have grown rapidly to support expansion and Veritape and has moved to much larger premises and opened a Southern sales office. The Company has recently developed a new fast-track growth plan and is also undertaking franchise initiatives in the Netherlands and Brazil.
Commenting on the experience to date, TEChINVEST investor and Veritape Chairman John Hinnigan said: "The original business has come a long way since its initial set-up in 2003. We have an excellent product, a far more robust business model, with strong 5 year growth projections of between 50% and 100% per year based on our recent track record and excellent market acceptance of our system. It's been a definite success story for all concerned and the original angel investors will soon be able to consider exit routes should they wish to do so."
Sales and Marketing Director Cameron Ross also believes that the future is bright: "This external investment has helped us to accomplish more, grow more quickly and yet not compromise the quality or integrity of the original proposition. We've benefited from an injection of experience and management expertise, as well as cash, and this has helped to transform the business. For us, the TEChINVEST 'angel' experience has been a very positive and welcome one -definitely worthwhile."
TEChINVEST is one of the UK's most successful business angel networks and a gateway to the broader raft of seed, loan and venture capital funds set up by the Northwest Regional Development Agency. No fewer than 550 North West companies have raised some or all of their funding as a result of the assistance received and the service currently boasts a success rate of almost 1 in 2 companies registering managing to raise the finance they seek.
For further information and details of how to register, please visit the website www.techinvest.org or call the team direct on 01925 400302.
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Veritape is a privately-held company based in Manchester, UK. It was founded in1998 to reduce the cost of voice recording by using innovative software. In the past 8 years, Veritape has enjoyed rapid growth, and its call recording software has been installed on over 300,000 computers worldwide.
Veritape's clients use call recording to improve their employees' customer service and sales, to comply with legislation, and to protect their staff from conflict or from abusive customers.
Press contact: Deborah Garritty at Bell Pottinger North (01625 506444) email@example.com