A leading cloud software start-up, based in Leeds and working with a major UK supermarket, is keen to avoid common pitfalls as it aims for significant investment.
Founded in 2016 and initially supported by seed investment in the lower six-digit range, the company’s cloud platform was initially designed to monitor, store, and analyse temperature and humidity data for the life sciences sector. It has since expanded its applications. Last year, the company conducted a trial with a prominent UK supermarket and has continued to collaborate, implementing its technology across the supermarket’s estate to manage energy consumption and building data.
According to founder and CEO Jordan Appleson, energy is the supermarket’s biggest expenditure. As the company prepares for a major funding round in the next 12 to 18 months, Appleson emphasises the importance of determining the precise funding needed. He remarked, ‘We don’t want to fall in the trap: when people have money in the bank, they spend it.’
Appleson elaborated that their current objective is scaling the business, now that it is operational, acquiring clients, and proving the value of their technology. He stated, ‘The next stage is how do we take what we’ve done and scale it horizontally and vertically rather than use it to fund the initial concept and R&D side?’
The company has adopted a strategy focused on maintaining low overheads and reinvesting in talent. Appleson further commented, ‘Taking too much money for us right now could be detrimental to growth.’ The company currently employs ten people and is focused on organic growth, anticipating seven-digit annual recurring revenue by the end of 2018.
Additionally, one of its non-executive directors has significant connections with another major supermarket, and negotiations are ongoing. Appleson also highlighted the vibrant tech scene in Leeds and the potential for increased collaboration with Manchester. ‘There’s so much opportunity between Leeds and Manchester for some of these start-ups to collaborate and spread the wealth,’ he noted. There is a strong sense of community within the tech start-up ecosystem, with a growing number of entrepreneurs and collaborative initiatives.
With a clear vision for growth and a cautious approach to funding, the company is set to expand its footprint in the energy, manufacturing, and retail sectors. The company’s strategic focus on scaling and community collaboration positions it well for future success.