Small Business: How to get millions from angel investors

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Triplejump founder Cecilia Farrow plans to list the company in mid 2014. Photo / Dean Purcell
Triplejump founder Cecilia Farrow plans to list the company in mid 2014. Photo / Dean Purcell

How does a fast-growing small business attract angel investment?

Albany company Triplejump should have an answer. Over the past four years it has netted $4 million in four capital raisings and it has just launched another.

Heavyweight shareholders including Sir Ralph Norris, board chairman Allan Morris and vice-chairman John Stace have been a reassuring presence for investors, says Triplejump founder Cecilia Farrow.

The current fifth round of funding of about $1.85 million will help the company prepare for a listing in the second quarter of next year.

Farrow, who ran a business risk advisory practice in the insurance industry, spotted the opportunity for Triplejump six years ago.

"Our process is designed to help risk management advisers have a robust conversation with business owners on their financial risks," she says.

Farrow and her team have built a network of 14 franchisees throughout the country.

"The development of the franchise has enabled us to prove that the IP we have developed does actually result in increased adviser productivity - higher sales conversions and higher value sales," says Farrow.

Triplejump has developed ClearPoint, which automates the process by which banks, accountants, insurers and adviser networks can provide business protection advice and insurance to small and medium-size businesses to manage human capital risk (HCR). ClearPoint is licensed on a software as a service (SaaS) basis.

"The licence gives large corporates who own and manage their own distribution channel the right to use Triplejump's IP, technology and adviser training programmes," says Farrow.

Triplejump's platform is scalable and has international potential as new stricter financial regulations for financial advisers are rolled out around the world, she says.

The company has grown by 25 per cent each year since it started.

"With the launch of the cloud technology platform in July 2013 and the strength of our sales pipeline in Australia and the UK, we expect to see a substantial lift in growth over the next four years," says Farrow.

She plans to list the company in the second quarter of next year to raise about $10 million.

The company turned over $1.48 million in the year ended March and forecasts 2014 turnover of $2.33 million.

To help with its international expansion, Ian Black, a former senior SAP manager, has been appointed chief executive.

"His appointment is a key part of our strategy, building up our capability to have these large business to business sales conversations," says executive director Farrow.

Top tip

Your financial model should demonstrate the business' scalability and the return it can generate.

Best business achievement

Two years ago we realised our platform was not globally scalable so we started again. We could not be doing what we are doing today if we had not had the courage to do that.

- NZ Herald

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