Menu
​Datagate raises $1 million as American dream becomes reality

​Datagate raises $1 million as American dream becomes reality

Kiwi cloud software company receives capital boost ahead of North American push.

Datagate Innovation has raised more than $1 million in capital as it gears up to hire salespeople and start selling into the North American market.

The growing Kiwi cloud start-up has raised $1,042,794 from new and existing investors, more than double its $500,000 target.

After originally tabled as a rights issue for existing investors, strong interest saw the company extend the capital raise to include new investors, as interest in the expanding business grows.

“We’re enjoying strong support from the investor community,” Datagate CEO, Mark Loveys, said.

“One of our customers has invested $100,000, government investment vehicle NZVIF $70,000 and angel investment group Enterprise Angels just over $300,000.

“The beauty of the angel groups is that they bring so much more than money to the table. They offer valuable networks, advice and introductions.”

Enterprise Angels joins Datagate’s two existing angel group investors, Ice Angels Nominees Ltd and FKA Nominees Ltd, better known as Flying Kiwi Angels.

“As we hire salespeople and prepare to enter the North American market later this year, our investor networks and expertise will assist with customer acquisition and strategic decision making,” Loveys said.

The move follows the appointment of Arron Patterson as a non-executive director, with the Dell EMC CTO of Asia Pacific and Japan also investing in the company through investment group Flying Kiwi Angels.

As reported by Reseller News, Patterson joins BankLink founder Malcolm McDonald on the Datagate board.

“These two investors alone bring enormous market expertise and valuable introductions, and they are just one part of our broader investor network,” Loveys added.

For customers including a network of Spark resellers and one of New Zealand’s largest IT services companies, Datagate’s cloud billing solution provides online billing, reporting and customer self-service for usage-based services.

According to Patterson, Datagate’s value is that it can bill, rate and present virtually any service that is subscription or usage-based.

“Part of my regional CTO role is to evaluate the cloud IT service provider market. One of the persistent challenges for these organisations is the need to carve up a service stream and give it to multiple metered customers.

“Metered billing continues to be an issue for managed service providers the world over, which is why Datagate has global growth potential.”

Loveys said said an additional 352,328 shares in Datagate Innovation Limited have been issued for $1.20 per share, 20 per cent above the share price of the first seed capital round which closed in February 2016.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags CloudsoftwareDatagate

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments