VCT Industry Report 2015-16

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77
Sept 2014 - £3.2 million
Retail
London
180
Founded in 2002, Watchfinder and Co is the UK’s premier reseller
of pre-owned fine watches. The company started life online and
has become one of the most popular watch-related websites in
the world with over 5.8 million people visiting each year.
In 2013, the first bricks and mortar store was added, which
accounted for 20% of sales in 2015 - which, to 2015, total £140
million. Watchfinder also operates a certified servicing centre
in Maidstone where the company’s expert technicians use
manufacturer approved machinery to service timepieces.
Every watch repair and refurbishment is followed by extensive
testing, ensuring that each watch falls within the manufacturer’s
specified tolerance before being returned to its owner or sold.
This allows the business to provide every watch sold with a one
year warranty and ensure it reaches the customer in perfect
condition.
The ProVen VCT’s investment is already being used to broaden
the company’s inventory of luxury timepieces, support the roll
out of a multi-media marketing campaign and further fund the
watch servicing centre. Google results show more searches
entered for the term Watchfinder than some of the better
established watch retailers and some of the top watch brands.
RATIONALE FOR INVESTMENT: Watchfinder is the most
trusted UK retailer for authentic pre-owned luxury timepieces,
with its own certified servicing centre. This well-established
business has proven expertise in this market and its business
model can deliver outstanding profitability. The return on
inventory and the unit economics are both impressively
strong, which together with a strong team makes it a great fit
for the ProVen portfolio of fast growing companies.
VALUE ADDED BY VCT MANAGER: Beringea introduced
Watchfinder to a number of key players in the luxury and
watch industries, helping secure new stores in Bluewater and
Leeds, and facilitated meetings with potential acquirers.
GROWTH IN REVENUE AND EMPLOYMENT: Revenues
increased from £8.7m in 2012 to £13.6m in 2013 (56% increase),
to £20.8m in 2014 (67% increase). Employee numbers
increased from 40 in 2012 to 100 in 2015.
COINVESTORS: Institutional co- investors – Piton Capital
Nov 2012 - £3 million
Information
London & New York
163
Cognolink is a provider of primary research services to
professional investment firms and their advisers, including
hedge funds, private equity, mutual fund managers and
management consultants. Cognolink helps its clients to
make important investment decisions by connecting them
to authoritative market intelligence provided by industry
specialists.
Cognolink was founded in London in 2007 and then quickly
expanded into international markets, opening a New York
office in 2010, followed by offices in Hong Kong, Shanghai,
Beijing and New Delhi. The company grew very rapidly from its
inception.
The ProVen VCTs invested £3 million in Cognolink in November
2012, to support further international expansion and the
development of additional research products.
Since the VCTs invested the company has continued to deliver
strong growth, recording turnover of nearly £22.8 million in
2014, an increase of nearly 68% on the previous year. This
growth shows no sign of abating and the company recently
moved into larger offices in both London and New York to
accommodate its growing workforce.
RATIONALE FOR INVESTMENT: The use of expert networks
and primary research to support investment decisions only
started in the 1990’s but has now become embedded in the
research processes of asset managers and consultancy firms.
Cognolink has established itself as one of the leading players
in the sector and is very well positioned for significant growth,
supported by this investment from Beringea.
VALUE ADDED BY VCT MANAGER: Beringea have a
successful track record backing companies in the information
sector, and are actively helping Cognolink expand their global
footprint. They are also helping the CEO to strengthen the
senior management team.
GROWTH IN REVENUE AND EMPLOYMENT: Cognolink has
seen some fantastic growth over the last few years: Revenue
growth from £8.7m in 2012; £13.6m in 2013; £22.8m in 2014.
0207 845 7820
Beringea is an established growth capital fund manager with a solid track record of successful
investment. The group has offices in the UK and the US, with total funds under management of over
£350 million. Beringea focuses on investing in companies with the potential for rapid growth, managed
by entrepreneurs who are passionate about their business and have the skills, drive and intelligence to
succeed. Beringea has successfully partnered with entrepreneurial businesses for more than 25 years.