One of Scotland’s leading independent corporate finance specialists, DC Consulting has recently expanded its operation by opening an office in Edinburgh. Established in 2001, DC Consulting has gained a growing reputation in the Scottish market as a dynamic, solution-driven firm specialising in fund-raising assignments for ambitious management teams, emerging technology companies and owner managed businesses in the SME market. The investment in staff and office space not only demonstrates the commitment of DC Consulting to continuing to support the Scottish SME and emerging technology market but also provides the Firm with an opportunity to broaden its advice and knowledge of investors in the Scottish marketplace and beyond.
Author: dcconsult_admin
Ciqual’s second funding round
Ciqual has latched on to one of the fastest growing technologies in communications, the use of mobile
networks for broadband connections.
The Edinburgh based company has developed a system, Session Insight, which enables mobile operators and their manufacturers to get a real-time view of the service provided and the user experience. This enables providers to assure the operation of their network and deliver a high level of service, and it enables manufacturers of the wireless ‘dongles’ which plug into mobile laptops to ensure that their pre-launch testing
has been successful.
The company was started in September 2007, and secured £1.25 million funding in March last year from Par Syndicate, an informal group of angel investors managed by Par Equity, and SE’s Scottish Co-investment Fund . A second round of funding from the same investors has been provided to fund the lengthy process of securing sales into large mobile operators, where projects have had to go through more levels of approval
than previously.
One effect of the global economic downturn seen by Ciqual is that mobile operators have purchased its system as a managed service, rather than an outright purchase, resulting in a regular revenue stream rather than discrete capital purchases.
During this period, the growth of data traffic has outpaced the growth of voice on mobile networks, with the consequent growth in demand for mobile broadband. Data traffic on mobile networks is set to double every year for the next five years according to a recent report by Cisco*, with laptop and wireless ‘dongle’ users generating 70% of this traffic growth.
Ciqual has this year had a major breakthrough, which could transform its business. This is a contract with one of the world’s largest telecom equipment manufacturers for the supply of its products under a ‘white label’ arrangement. Details of the deal are closely guarded until the first sales are secured, with Ciqual recently completing its first live trials at a Spanish mobile operator for its new partner. The equipment manufacturer in question had been developing its own technology for testing network performance, but decided to check what was available from third parties. After assessing a number of products, it was decided to work with Ciqual – not only a big win for the company in terms of business, but also a welcome technical endorsement.
The second funding round, complete in May, was an equity investment of £700k from Par Syndicate and SCF, of which £400k has been paid now, with the second tranche payable in September/October against agreed milestones. Ciqual was advised in this fundraising by DC Consulting.
Lochglen Whisky Secures Funding
Lochglen Whisky Company is a sales and marketing company set up to export blended scotch whisky to the US, South America and China.
Established in late 2009 by serial entrepreneur John McHattie, Lochglen is intended to be a niche exporter to target markets and has an extensive distributor network in place capable of achieving significant revenues in the next three years.
Earlier this month the company secured funding of an undisclosed amount from a business angel for the purchase of stock and initial working capital and to fund the initial start-up of the business.
ICS2: £500k Refinancing Package
To allow the business to survive, ICS2’s directors set about the task of seeking new investment to place the company on a level keel and return the business to profit. The original owners and private investor in the business, working closely with Dundee Council, the Scottish Executive, and Barwell plc, and with DC Consulting as advisers, negotiated a new funding package that was acceptable to the Bank of Scotland and all relevant parties involved. As a result a total refunding package of £500k was achieved. Continue reading “ICS2: £500k Refinancing Package”
TPLD: £430k Investment
TPLD worked with Angus Hay of DC Consulting in preparing a new business plan to take the company forward, and it was DC Consulting that made the introduction to Barwell. The investment of £430k, completed in mid-February, incorporated the conversion of loans and preference shares from existing investors alongside new equity being introduced from Barwell and the Scottish Co-investment Fund. The funding package will enable Piggot and colleagues to embark upon a marketing plan which will see them take the Virtual World product to prospective clients in a ‘road show’ format. TPLD currently sells mainly in the UK, but has prospects in Singapore and Europe; in addition, Barwell is providing contacts which will help the company to enter the USA.
Cariescan: £750k Raised
Cariescan, the dental technology group formed out of university spinout, IDMOS, has raised £750,000, its second fundraising this year. The Dundee based company said the cash, raised from existing shreholders including Scottish Enterprise, would be used for research and marketing investment.
Chief Executive Graham Lay said Cariescan’s first product, which it claims measures tooth decay more accurately than X-Rays, is now on sale in the UK, while a distribution agreement for Canada is imminent.
Novabiotics: £1.1m of Equity
The DC Consulting team, led by Angus Hay, has successfully assisted NovaBiotics Limited in securing an equity investment of £1.1 million. The investment was made by both existing shareholders in the company and by new sources of funds introduced by DC Consulting, including Discovery Investment Fund, TRIcap and Aurora Private Equity. After the successful completion of the transaction, NovaBiotics announced regulatory and ethics clearance had been obtained to commence clinical trials of its lead product Novexatin.
PowerPhotonic: £405k Raised
Co-ordinated by DC Consulting’s John Craig, PowerPhotonic has recently been awarded a £80,000 RSA award to support a ramp up in production and sales activity. This grant award augments a £325,000 investment into the company led by Archangel Informal Investments and Tri Capital.
J Funerals Limited: SEED Investment
In a transaction co-ordinated by John Craig, J Funerals Limited have successfully completed the SEED investment to launch its products in the funeral market place.
This investment brings together Sandra Thomson, who has worked in the Jute Industry since 1985 (and widely accepted as an expert in this field), and David McKenzie, previous founder and CEO of Commsworld Limited with the primary aim of delivery eco-friendly coffins and associated funereal products to the mainstream market.
CarieScan: £2m Secured
CarieScan secures £2 million for global sales & marketing.CarieScan, based in Dundee, is taking to market a device which uses AC impedance spectroscopy (ACIST) to determine the mineral density of dental substrate, as a means of detecting tooth decay at an earlier stage than usual, and monitoring its progress accurately.