Queensland software developer inteRAD Technology has decided to stay in Australia and go public, rather than raise the money from venture capitalists in the US.inteRAD Technology CEO Lorraine Cobcroft told ARN last week it had wanted to maintain an Australian operation and saw the opportunity to raise the capital it needed here. ". . . a harder road but it's working and it's working very well", Cobcroft said. "In general we found the venture capitalists wanted a very large chunk of the action, particularly in the US."
The announcement to go public coincides with inteRAD Technology's launch of its build-IT software development tool.
The company is accelerating its marketing plans and releasing a prospectus for a public raising of up to $10 million, made up of 25 million fully paid 40 cent shares. The offer opened last week. If the capital raising is successful, inteRAD projects a maiden gross profit of $40-48 million in 2001.
A proportion of the funds will be used to launch a media advertising campaign, and the company will also be using the Internet to market its product.
Cobcroft said it was finalising details of its distribution channels in the US with market strategist Tactical Marketing Ventures. She hopes this will be completed within the next two weeks.
After the US distribution is finalised, inteRAD will be devising its Australian channel. Cobcroft anticipates, in addition to selling directly over the Internet, inteRAD will be looking at making build-IT available through specialist mail-order companies and larger VARS, with "shop shelf" distribution of its standard and education product.
In regard to the potential of the Internet as a channel to sell products, Cobcroft believes it is very exciting and has a lot of potential. However, she thinks there is also a need to develop management strategies so it doesn't impact on sales from other channels. "I don't think very many people have got their head around how to do that at this stage."
Cobcroft sees the opportunities for selling over the Internet extending beyond direct sales by vendors, to the channel. "I don't think very many of them are capitalising on the opportunity yet but are starting to look at it."inteRAD is currently doing some limited direct selling, and plans to start actively marketing build-IT towards the middle of the month. Cobcroft believes the product will "sell itself because of its enormous capabilities".