tagSpace preparing for AUD 10m Series A raise in August – CEO
22 NOV 2017
TagSpace, a privately held Australia-based mixed reality software company, is preparing to raise AUD 8m to AUD 10m in its Series A fundraise in August next year, CEO Paul Martin said.
The Sydney-based company will be seeking capital to fund its marketing campaigns as well as further enhance its platform and secure technology patents, he said. It will offer up to a 25% stake in the company for the investor, Martin said.
TagSpace would like to hear from strategic investors and it would also like to approach players like California-based Sequoia Capitalor Sound Ventures that have invested in similar companies, the CEO said. Martin declined to comment on whether it has already engaged in talks with them.
The company would also consider investors that have existing connections to potential future acquirers, he said, adding that its technology would fit “very nicely”
with Google or Facebook [NASDAQ: FB]. TagSpace could be a takeover target anytime in one to four years, Martin said.
Its software platform allows users to create and host mixed reality content in a real world location, Martin said. It generates revenues like other Platform as a Service providers and charges licensing fees, he said.
At the same time, tagSpace is also conducting its second seed round. It has already raised AUD 600,000 and there is still an opportunity to raise another AUD 350,000 from strategics, he said. Previously, tagSpace raised AUD 1m, he said.
TagSpace is working with Deloitte for accountancy and compliance matters and might do
“some work’ with KPMG as there is some mutual interest between both parties, the CEO said, without elaborating further. It is likely to run its Series A raise independently, Martin said.
The company also sees growth opportunities in the US and is setting up an office in Los Angeles, he said. In the US this type of technology is more mature and there are a lot of marketing agencies, publishers, advertising and public relations agencies that are looking for innovative offerings, he said. It is also in discussions with unnamed potential partners to enter other offshore markets, the CEO said, adding that it cannot disclose details at this stage.
TagSpace has 11 employees, Martin said.
The CEO named UK-based augmented reality company Blippar as its larger peer in the industry.
Martin started tagSpace three-and-a-half years ago and incorporated it a year later.