Former NSC Group founder Craig Neil is stepping back into the IT industry following his investment in analytics company Flamingo Ai.
Neil, who sold his NSC Group business for about $100 million in 2013 to Telstra, stayed on until the integration process was completed, before taking the reins at IPscape until 2015.
Thereafter, he spent a bit of time outside of the IT industry, but spotted an opportunity to invest in the independent software vendor, purchasing the company for a total of $1.4 million cash in May.
Neil previously crossed paths with the company’s CEO, Olivier Cauderlier when he also spent some time with IPscape as the CTO.
“This opportunity with Flamingo came up, and I had a lot of interest in this space,” Neil said. “I have a lot of faith and trust in Olivier, and I feel comfortable with what he’s doing.”
Neil plans to turn the business around as it retains some good customer projects in the works. If shareholders agree to the purchase conditions, Neil will de-list the company, and take it private from 1 July.
Founded in 2016 by Dr Catriona Wallace, Flamingo Ai previously seemed to have a rosy future ahead, boasting virtual assistant clients such as Nationwide Mutual Insurance Company, Liberty Mutual, AMP, CHUBB, CUA, WISR and MetLife Asi.
“They’re half way through delivering on a number of projects and I believe we’re going to deliver on those projects successfully in the next six to nine months,” he said. “The branding and logos will remain in place, and I’m really pumped about what they’re delivering to the market and their approach.”
Flamingo successfully raised $15 million in the second quarter of 2017 and $3 million in 2016.
However, in its recent half year report, the company posted a loss of $2.2 million after making just $345,000 in revenue.
In May, it told investors it had failed to raise any “substantial” capital to ease its high cash burn rate and continue serving customers in Australia and the United States.
As such, Flamingo Ai, which offers an artificial intelligence assistant and cloud-based software platform to financial and insurance enterprises, was sold to Rymamay Investments (Craig Neil Investments).