Video Direct Case Study

Video Direct were fortunate enough to secure their second round of funding through our London Angel Club...

The London Angel Club has invested a significant amount in Video Direct, an online video company based in the South West UK.

Video Direct was established in 2009 to address the fast growth promotional online video market.  Videobuilder helps publishers and exhibition organisers do amazing things easily with video. It’s a subscription based service that enables them to sell low cost and self serve video production to their own clients and then add the videos to their websites.
 
Through an Angels Den SpeedFunding™ event in London, Video Direct received their first round of funding in early 2011 which was the seed funding required to develop their new Video Builder solution. Video Direct then returned in May wanting to raise additional capital to go to market.

Angels Den selected Video Direct from a group of established businesses to pitch at the May Angel Club meeting in London. They received a very positive response from the Angels, who liked the Managing Director, the team and their frugal approach to running the business; however they wanted some market traction to prove the market opportunity existed before looking at the opportunity in depth.

Colin Spiller, the London Angel Club Manager kept in touch with the Video Direct team over the summer and monitored their progress. With Video Direct starting to generate positive levels of cash flow and a number of significant blue chip client bridgehead wins, Colin provided an update to the London Angel Club meeting in September. The opportunity generated significant interest and resulted in a deal being completed in November with 10 Angel Club members investing in Video Direct. Through the support of Colin, Angels Den was instrumental in Video Direct’s success in getting to market and quickly gaining additional client traction.

As part of an exclusive arrangement with major equity law firm Edwards Wildman, Angels Den offers an Investment Document Service free of charge to all Angels Den standard investment deals in the UK.  Video Direct utilised this free service, which ensures as much of the investment proceeds as possible can be used to grow the business.

Richard Counsell, Founder of Video Direct said “it has been a pleasure to work with Angels Den and the London Angel Club throughout the fundraising; we knew at each step of the process what we needed to do to keep the process on track. Colin Spiller, the London Angel Club Manager was always available to offer support and encouragement and followed through to ensure everyone was fully informed and moved the deal quickly to a successful conclusion”.

Colin Spiller, Angels Den Angel Club Director said “it’s exciting times for the Angel Club as we continue to meet with a growing number of established companies keen to take their business to the next level with the help of experienced Angel Investors.  At a time when bank finance is increasingly difficult to obtain, our investors continue to work with selected businesses, providing the capital and hands on support enabling them to grow and develop”.

 


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