Australia's LiveTiles nabs US$7M funding from New York Govt
- 04 May, 2018 15:10
Australian cloud-based digital workplace software vendor LiveTiles (ASX:LVT) has been awarded a US$7 million funding package from New York's state and local governments.
The package is a combination of grants and tax credits that will be made available to the company over the next five years.
The funding was granted to support LiveTiles to establish a local hub to house its 60 sales and marketing staff. The North American Intelligent User Experience (IUX) Hub is to be located in Rochester, New York.
The newly created team is a direct result of the company's partnership with integrated sales and marketing consultancy firm N3 announced earlier in the year.
The deal with N3 is expected to add US$2.7 million (A$3.4 million) in annualised subscription revenue to LiveTiles.
N3 is an outsourced sales and marketing execution vendor for Microsoft’s Azure and Dynamics platforms. In addition to Microsoft, N3’s global clients include SAP, IBM and Cisco.
However, even though the software license agreement with N3 would add a monthly payment of US$225,000 to LiveTiles the sales and marketing agreement was set to cost LiveTiles US$800,000 a month.
By generating 60 local jobs, LiveTiles was able to secure the funding package. The Australian company said in a statement it expects to receive grant funding of approximately US$1.5 million over the next 12 months.
“LiveTiles' decision to establish their North American Hub in Rochester's Downtown Innovation Zone is proof positive that our economic development investments to drive growth and enterprise are working, and this state-of-the-art company will bolster our efforts to move the Finger Lakes economy forward,” New York Governor Andrew M. Cuomo said.
The company has attributed the funding to its passed success working with the US government including the US Department of Defense, the US Department of State and other local governments.
“We are excited to be partnering with the New York government to accelerate our growth in North America," LiveTiles co-Founder and CEO Karl Redenbach said. "We expect the newly-established LiveTiles-N3 team will generate strong and highly scalable customer and revenue growth for LiveTiles.”
As previously reported by ARN, former LiveTiles executive Anthony Girand took the company to the New York County Supreme Court claiming damages of more than US$25 million over alleged discrimination and wrongful termination.