Exclusive: Start-up Iotatech's £1m raise will secure its development and growth over the next two years.
The Michael Sargeant and Robert Thomson-led insurance software company looked to industry contacts to fund the raise, rather than going down the venture capital route.
CEO Sargent told Post that the company would use the £1m raised for two main things.
He said: ”Firstly to accelerate the development of the product. Secondly, for sales and marketing.”
Iotatech has ambitions to target the claims sector following its second raise, though the pay-per-use platform can also cater for policy management, according to its senior team. Both directors are former heavyweights at software firm Innovation Group.
It has already spent two years building the product, which it hopes will be an attractive proposition for housing associations, local authorities, third party administrators and MGAs, in addition to brokers and insurers.
Sargeant, pictured, added: “Now, with our development and growth plans secured, we’re well-placed to bring our insurance technology platform to market. Claims is our current sweet spot, but our proposition will also cater for other parts of the insurance value chain, including policy.”
For now, it will seek to grow organically. It is understood that the firm is unlikely to go down the venture capital funding route in its next round, as Sargeant claims it had interest from at least 30 industry veterans in the most recent raise. Of these, 11 participated.
“It blows you away, because think you are doing the right thing, or you are starting to do, these are not idiots. These are really smart people,” Sargeant said on the raise.
He added: “Right now our plan is not to raise capital within the next couple of years. We want to get ourselves established by selling the product, and generating revenue that way. If we need to go through some massive growth because the interest is there, and fingers crossed it will be, I doubt I’ll do the venture capital route. We don’t seem to need to do that. We’ve got enough interest. That was our first 30. We thought we might have to find another 30.
“With the raise, it just happened so quickly that we had to close the door. So I’ve got contacts.”
Investors and industry figures that have joined its Strategic Advisory Council include Fresh Insurance founder Lisa Powis, former Capita and Liberata CEO Dermot Joyce, former CGI president Tim Gregory, industry consultant Sue Balcombe and former Zurich claims director Tony Emms.
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