Net4

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  • 03/04/2022
    Closing date
  • £10,000.00
    Min. investment
  • Technology
    Sector
  • EIS
    Investment type

Net4 simplifies the delivery of IoT solutions for channel & technology partners

Net4 is a solutions provider focused on Internet of Things and connected devices. Net4 partners with some of the biggest names in tech to deliver end to end solutions to channel partners and blue‐chip clients alike.

After building a strong foundation Net4 saw initial revenues in late 2019. Revenue for 2020 is currently £300k, with sales continuing despite the pandemic. Net4 has multiple high-profile projects underway with some of the UK’s largest organisations.

Through the ARIE Capital* Asian tech fund, Net4 has secured $3m to build a team and factory to develop its own hardware solutions. This funding is expected in early 2021. The capability to develop and produce its own hardware will further strengthen the Net4 offering, removing cost layers and increasing profitability. This gives Net4 a unique solution set in the market.

Highlights

  • $3m future investment already secured.
  • Opportunity to invest in a pivotal Internet of Things platform
  • Internet of Things market is worth $742Bn in 2020 with CAGR forecasted at 11.3% over the next 4 years
  • Valuable key partnerships in place with Arm, Pepperl & Fuchs, IBM and Verizon
  • Proven ability to deliver solutions to blue chip customers
  • Customers include SCC (scc.com), Tesco and Network Rail
  • Strong, well developed sales channel
  • Active sales channels in Europe, Africa and Latin America
  • Revenue generating with growing sales pipeline

Market analysis

The Internet of Things (IoT) market is growing rapidly; even during the current pandemic. With a forecasted CAGR of over 8% in 2020 and 11% over the next 4 year, IoT will see strong continual growth for the foreseeable future. The addressable market size in 2020 was $742 Bn and with forecasted rapid growth the market opportunity is enormous.

Business model

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Use of funds

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Financial projections

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Key team

Alex Taylor - CEO

Alex is a passionate technologist with over 25 years experience in telecoms and IT. Starting out managing a retail store, he quickly advanced into product development with Recall Group, developing cutting edge vehicle tracking solutions. This was followed by consulting and advisory roles including projects for core technology solutions for companies such as Dell and Barclays Bank.

Alex then became the head of technology for a leading international MVNO which had in excess of 300k users spanning over 100 countries. He then worked for floLIVE, leading the sales of NVF solutions focused on IoT and machine based applications. His career experience provides the broad knowledge to lead Net4 in its technology focused market with powerful channel relationships.

Alex recently appeared on the Next Big Thing Podcast discussing Net4 and his vision for Visual Analytics. 

Simon Tobelem - Director

A globally-experienced investment and business development professional and entrepreneur, Simon has more than 25 years’ experience in banking, venture capital, corporate finance, M&A and general management. Prior to founding ARIE Capital, Simon forged a strong reputation as a strategic advisor to senior management and boards using strong analytical and financial engineering skills with a ‘big picture’ vision.

Previous positions include spells at Rothschild Bank, as the Economic Adviser to the Israeli Minister of Finance, and as General Manager of Corporate Finance at the Israel Discount Bank.

Simon currently sits on the UK-Israel EdTech Task Force, and is fluent in five languages, including English, French and Hebrew

Pete Norton - Head of Sales

Pete is head of sales for Net4. Pete joined Net4 as part of the IBM C4G program to assist IBM partners in their development and growth. Pete brings extensive experience to Net4, having spent 19 years at IBM in a variety of roles around business development, partner onboarding, Enterprise License Agreements and other high‐profile roles.

He is driven and highly organised. Pete has an extensive network of contacts and experience of developing channels for high tech services.

Fee summary

Investor fees

0% - initial fee

20% - performance fee at a hurdle of £1.35

This means 100% of any investment qualifies for EIS relief.

Note: The sponsor (ARIE Capital) charges the investee company (NET4) an initial 5% from which they pay third party fees as well as an ongoing management charge of 1.5% p.a.

Documents

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The content above has been provided by Arie Capital Limited, an Investment Adviser to Sapphire Capital Partners LLP who are authorised and regulated by the Financial Conduct Authority under firm registration number 565716.