Software Company
The Company
This venture capital backed University spin-out company had £3m invested in it over a 5 year period. The company's software offering was centred around innovative real time video compression algorithms but the business lacked strategic direction. Shareholder value was at an all time low and the institutional shareholders wanted an early exit.
The Assignment
This venture capital backed University spin-out company had £3m invested in it over a 5 year period. The company's software offering was centred around innovative real time video compression algorithms but the business lacked strategic direction. Shareholder value was at an all time low and the institutional shareholders wanted an early exit.
The Assignment
- Invited to join Board by Aberdeen Asset Management and Scottish Equity Partners to increase shareholder value from the video compression technology
- Carry out a strategic review of the business, identify a new strategy to grow shareholder value, build a new team and refocus product strategy
The Plan
- Raise new venture capital funding in August 2005 to refinance business
- Recruit a new management team sales, marketing and finance personnel to improve front end of business
- Secure second round of funding in November 2006 to take business forward and launch new product
- Improve cash control and financial management allowing technical team to focus on operational issues
- Focus business to provide solutions that customers wanted with real world applications
- Broaden customer base, grow sales and secure partnership deals with large corporations in US
- Secure a significant trade investment deal from a major prime contractor to demonstrate commercial viability of business
The Results
- Successfully recruited new management team to transform business
- Rebuilt company infrastructure and moved culture forward
- Company secured major US trade investor and global sales partner
- Significantly increased shareholder value over a 3 year period
