Two North East companies are set to create dozens of jobs after receiving a total of £3m in investments.
Gateshead intranet company Orchidsoft will more than double the size of its workforce after receiving £2.7m through a variety of funds.
The firm will use the cash to expand its sales and marketing efforts across the UK and US, as well as boost its staff numbers from 45 to 100 by 2022.
The company is best known for its cloud-based intranet platform called Oak. Since its launch in 2016, the product has been used by a number of high profile customers such as Aldi, Comic Relief, Halfords, Pizza Express, ITV, Virgin Money and Newcastle Building Society.
A total of £2.2m was provided by Maven Capital Partners, which included £700,000 investment from the Finance Durham Fund. A further £500,000 was provided by Northstar Ventures from the recently launched North East Fund.
Sukh Ryatt, Orchidsoft’s CEO, said: “Our amazing team have created something really special with Oak and it’s been an incredible year for us, with record sales and growth and now with this transformative investment, which will allow us to scale our business globally.
“We’re thankful for the great funding partners we have in Maven, Northstar Ventures and Finance Durham and look forward to working together with them to make a noise from the North East that’s heard around the globe.”
Newcastle-headquartered digital marketing agency Venture Stream has also received £300,000 from Northstar Ventures, through the North East Innovation Fund.
The business was founded in 2014 by serial entrepreneur Victor Morgan and has grown in size to a 20-strong team with revenues of £1m. Venture Stream is planning to double its headcount to 40 members of staff and bring in £3m in turnover by 2020.
Following the investment, the marketing firm is planning to make a number of strategic hires in its consulting business, invest in new premises in Newcastle, as well as launch additional offices across the country.
Vic Morgan, managing director at Venture Stream, said: “A key success factor in digital business is the ability to unify technology and marketing to drive business growth. It’s this outlook that has enabled both us as an agency and our clients to achieve great results.
“We’re excited about our position in a competitive market to capitalise on this trend, and the Innovation Fund investment is a welcome recognition of what we’ve accomplished in a short time frame and will help us accelerate our growth further.”
Richard Charnley, investment manager for the Northstar Northeast Innovation Fund, said: “The new £27m North East Innovation Fund is focused on backing scalable, innovative start-ups and growing businesses and Venture Stream is a perfect example of the kind of business that can benefit from the fund.
“Northstar Ventures first funded Venture Stream back in 2014 and the business has gone from strength-to-strength ever since. We’re excited to now further invest in such a fantastic local business through the new fund that we believe can become a future leader in transforming the UK ecommerce and digital marketing services market.”
Source : Chroniclelive