Australian electronic procurement developer Streamlink has attracted $1 million in venture capital funding from IT Capital and has signed an agreement to gain a further million dollars if it meets certain milestones in the future.
The investment came about after Streamlink appointed financial services company Greshams as a partner to seek further funding. The agreement gives IT Capital a 23.5 per cent holding in Streamlink, and two of the six seats on the Streamlink board.
Streamlink chairman and chief executive officer Verilyn Fitzgerald said the funding will be used as ongoing working capital, further software development and market expansion. "In this market, ongoing research and development is an absolute necessity to provide customers with the functionality they require," she said.
The second installment of $1 million will be paid if Streamlink meets three criteria: it must become Oracle Certified, it needs to generate an undisclosed amount of revenue, and it needs to engage in growing business relationships with partners.
Fitzgerald said working with consultant partners was critical to the company's success. It already works with several consultants with expertise in particular vertical industries, such as Logica, Business Catalyst, Deloitte Touch Tohmatsu and, most recently, Ernst and Young.
Fitzgerald said the company is likely to remain private in the short-to-medium term, considering the current health of technology stocks. "I think if a company is to be public, you need to be meeting the criteria for listing before the technology boom," she said. "You need to have revenues around the $50-100 million revenue mark, and be experiencing dramatic growth."