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 softwareDatagate

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments