Boom, SME-focused telecom, is raising growth capital on Growthdeck. Boom, an IP phone system claims to be able to save a small business up to £12,000 a year with their services.
According to the offering page, Boom is seeking a minimum amount of £1.5 million and up to £2.15 million. The offering is still indicating “coming soon” and there is not yet an indication of the valuation of the firm and the percentage of equity up for sale. The company has been qualified as an EIS investment – something that is materially important for investors as this enables individuals to reclaim 30% of the cost of investment against their taxable income and if held for at least three years, zero capital gains. That’s big.
Boom is a cloud-based telecoms system that claims a wider range of features and a significantly lower wholesale price point than its competitors. The Boom platform allows a business to make and receive calls from any number on any device (landline, mobile, etc.). A call center can operate with agents using mobile phones or PC software and route calls to staff members located anywhere so no desk phones needed. There is also a call/text recording service as standard.
Boom expects turnover to hit £1 million this year at a gross profit margin of 69%. The company claims an ambitious forecast of £23.7 million in turnover at a margin of 73% by 2023.
The company sees opportunity in the fact that BT is shuttering its ISDN services thus Boom is expecting to benefit from this secular shift.
The management team at Boom has many years of experience in the telecoms industry, including:
- Founder Martin Boiles, a renowned telecoms entrepreneur, who has built and successfully exited four businesses in hosted telephony and billing services over the last 25 years
- CEO Nick Birtwistle, who spent more than a decade in senior roles at Vodafone, including as Commercial Director for the Enterprise division
- COO/CTO Simon Slater-Thomas, who co-founded telecoms provider Redstone and was Strategy Director through its IPO on the London Stock Exchange
- CMO Derek Owen, who has held senior marketing roles with businesses including Alcatel-Lucent, NEC and B&Q
Chairman Clive Sawkins, former VP of Cisco, who has also held senior roles with IP telephony giants Avaya and Nortel
Gary Robins, Head of Business Development at Growthdeck, explains that Boom represents an opportunity to back a genuinely disruptive model of enterprise telecoms, which combines a better service with a lower price point.
“The pipeline of channel partners in negotiation with Boom reflects industry recognition that Boom’s offering is superior to its competitors.”
So can Boom compete? That’s what an investor will be betting on.
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