Online print procurement and fulfilment service provider, MagentaSoft, has opted for an angel for its first round of funding. The company states that although it explored options from established venture capital (VC) concerns, it found its angel was the best fit for its seed, research and business development needs.
Wishing to remain anonymous for the time being, the angel has invested an undisclosed sum for a minority holding in the company.
"Our reasons for deciding on angel funding as opposed to VC were intricate. Contrary to the more conventional structures associated with VC transactions, we had the flexibility to vary the terms and conditions of the investment protecting both the future of the business and the investor, " says Simon Haskell, MagentaSoft`s managing director.
MagentaSoft has launched the next generation of its communications procurement and fulfilment application which allows companies to typeset, proof and order all their print and promotional collateral online. The company claims that with its new application streamlining the whole process, companies can now experience anywhere from 20% to 80% direct cost savings coupled with radically improved turnaround times.
The company`s directors acknowledge that in order for it to remain abreast with technology and innovation, in addition to market capitalisation in other vertical genres, funding the business or divisions thereof will become an ongoing process. Therefore, it was paramount that the initial investment did not obstruct or complicate the way for the next rounds. Other contributing factors were that MagentaSoft did not require a multimillion investment and the fact that the angel was not looking for a short investment horizon with a quick exit strategy.
Jason Frichol, MagentaSoft`s strategic and marketing director, says: "MagentaSoft has introduced a new set of features and services which tackles the entire process delivering a holistic solution. Our mainline focus is shifting from just client acquisition and it is our intent to position MagentaSoft as a leader in customer service offering unrivalled customer satisfaction while consolidating our loyal customer following. The main impetus behind this will be `customer share` as opposed to market share. We were fortunate to find an investor who understood this and the importance of sustainable foundation building rather than rapid return on investment."
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