Programme: Future Fund
How do you secure another line of funding when the COVID-19 outbreak has threatened your working capital? This London-based software developer had only recently launched to market when it came up against this dilemma. But thanks to the Future Fund, help was at hand.
Read what the company had to say in this Future Fund case study.
British Business Bank: Can you tell us what your company does?
Anthony Johnson, group managing director of Terralogix: Terralogix has developed unique, AI-based technology and processes able to solve the highly complex problem of land around the world lying economically dormant, due to issues with legal title.
We provide landowners with an inexorable route to establishing legal title ahead of realising value from its ultimate sale.
The coronavirus has affected a huge number of businesses across the UK. What problems were you facing as a result of the outbreak and what made you apply to the Future Fund?
Having spent four years and around £3 million in R&D, we recently launched to the outside world. The company has achieved well over 7,000 registered users globally in a matter of months and is gearing up to launch its first project.
As we are pre-revenue, we’re reliant on equity finance to fund this current stage of development – predominantly through the Government’s Enterprise Investment Scheme. In parallel, we sought and secured from a social impact fund an offer of project finance to fund our pilot project.
The COVID-19 outbreak had an immediate impact on both sources of working capital, meaning we needed to quickly secure an alternative, temporary line of funding to fill the gap.
How long did the application process take? Did you need any support?
The application process took a matter of weeks and was handled entirely online without any need for assistance. The approval in principal came back in around 10 days, and once we’d secured funds from investors, the government-matched funds were released within a week. It was a swift and painless process.
Were it not for the speed at which the Government rolled out the Future Fund, five years’ worth of R&D and, ultimately, the trajectory of our business faced severe jeopardy.
Anthony Johnson, group managing director of Terralogix
What advice would you give to other businesses that are applying to the Future Fund?
Assuming you can find the investment for the Government to match, the Future Fund is a fast and fair way to raise capital in very difficult times.
How has the Future Fund helped your organisation to weather the outbreak? And what might have happened if you hadn’t received the money?
Without support from the Future Fund, we faced having to scale the business back to the point of hibernation, severely affecting the momentum we’d built over the past year, perhaps irrevocably. As a team, we are extremely grateful for the speed at which the programme was rolled out and for the lifeline it gave the business and its employees.