Story image

Datagate Innovation oversubscribes $500,000 rights issue; seeks new investors

06 Dec 16

Cloud software startup Datagate Innovation has oversubscribed a $500,000 rights issue to existing shareholders and is now extending the issue to new investors.

Datagate, whose customers include Spark wholesale, Spark resellers and IT services companies, provides billing solutions for telco, utility and other subscription services. This also helps end users buy aggregated services on a single invoice.

Mark Lovey, Datagate CEO, says he is delighted with the results and interest.

“We quickly secured $500,000 at a pre-money valuation of $3.6 million, or $1.20 per share – 20 percent above the share price of our first seed capital round which closed in February this year. We’re also delighted by the strong interest from new investors and have extended our timeframe to December 2016 to allow due diligence by incoming new investors.”

A current Datagate customer funded $100,000 while a new angel group has also provided funds. If due diligence is successful, the new group will join the two other angel investment groups currently supporting Datagate: Ice Angels and FKA.

The funds will be used for international expansion, particularly as the market shifts towards cloud software and subscription services, Lovey says.

“Datagate can bill, rate and present virtually any service that is subscription or usage-based,” he says. “We see providers of cloud software as an especially massive growth opportunity, particularly as we move into offshore markets later next year," he explains.

Datagate is a joint venture between Enprise Group and investors, including Ice Angels, VIF, Flying Kiwi Angels and Datagate management. The company secured $1.46 million in its first round seed funding.

A separate board was established, which includes BankLink founder Malcolm McDonald. The company's largest shareholder is Enprise Group.

Accenture 'largest Oracle Cloud integrator in A/NZ'
Accenture has bought out Oracle Software-as-a-Service provider PrimeQ, which now makes Accenture the largest Oracle Cloud systems integrator in Australia and New Zealand.
Telesmart to deliver Cloud Calling for Microsoft Teams
The integration will allow Telesmart’s Cloud Calling for Microsoft Teams to natively enable external voice connectivity from within Teams collaborative workflow environment.
Jade Software & Ambit take chatbots to next level of AI
“Conversation Agents present a huge opportunity to increase customer and employee engagement in a cost-effective manner."
How to keep network infrastructure secure and available
Two OVH executives have weighed in on how network infrastructure and the challenges in that space will be evolving in the coming year.
White box losing out to brands in 100 GE switching market
H3C, Cisco and Huawei have all gained share in the growing competition in the data centre switching market.
Gartner names newcomer Exabeam a leader in SIEM
The vendor landscape for SIEM is evolving, with recent entrants bringing technologies optimised for analytics use cases.
52mil users affected by Google+’s second data breach
Google+ APIs will be shut down within the next 90 days, and the consumer platform will be disabled in April 2019 instead of August 2019 as originally planned.
How Fujitsu aims to tackle digitalisation and the data that comes with it
Fujitsu CELSIUS workstations aim to be the ideal platform for accelerating innovation and data-rich design.